Can Flattr Fix the Digital Supply Chain?

Have you ever heard of Flattr? Probably not... How about AdBlock Plus (“ABP”)?

With nearly 200 million active users and $22B in lost revenue due to the blocking, I assume most have heard of it, and many have used it. For those unaware, ABP is a hugely disruptive force in the digital marketing industry blocking ads and streamlining the web. They made headlines through a recent partnership with a startup called Flattr, and it is likely that this new arrangement will only compound the already complex digital landscape.

The digital marketing supply chain is bloated, complex and inefficient. The current arrangement serves intermediaries before clients, and fraud, privacy, and kickbacks plagued the industry during 2015. ABP generates revenue primarily through the Acceptable Ads Initiative, enabling publishers with large enough piggy bank to whitelist their content.

However, the issue remains for publishers that are unable to find themselves whitelisted. ABP is betting on Flattr to fill this gap by providing users with the vehicle to allocate and donate to the publishers they most enjoy. Flattr will track and account for engagement through variables like time spent and scroll activity, and will then calculate and distribute royalties accordingly.

While publishers will need to opt-in for Flattr support, it may be worthwhile, as ABP expects the program to generate around $500M for publishers in the first year. Additionally, Flattr will earn a 10% commission on all donations.

As the landscape continues to shift and advertisers, publishers and consumers continue to strive for a common middle ground, it will be interesting to see if Flattr’s service goes far enough.

Interested in learning more? Check out Flattr Plus online.

Story first read on TechCrunch