One of the common questions about LeoFinance is how to determine the intrinsic value of the LEO token. Ad revenue plays a central role in the long-term mission of creating a sustainable economy that generates a rising intrinsic value for the LEO token, its hodlers, the content creators and the curators who participate in the platform.
Tracking the growth of LeoFinance's ad revenue is one of the most important economic indicators within our ecosystem. While the ad program brought in a small amount of revenue at the start, it has continually grown since its inception (around September of 2019).
In 2020, we've seen a massive climb in the ad revenue we generate each day. This has been directly related to a rising user base and token price alongside our general traffic (unique visitors who are non-Hive entirely) dramatically increasing.
Last month, we reported on our ad revenue for October generating 31% of our entire ad revenue for the year - showing a great indication of our exponential growth.
This month (November), we've seen our growth sustain itself. Rather than see a massive spike up and then a subsequent downtrend in the ad revenue, we've seen new highs being met sustainably.
We brought in almost the same amount of ad revenue this month as we did last month. The total numbers tell a story of how our ad impressions are continually increasing, but there were less users who clicked on ads coupled with a slightly lower CTR. Our CPM this month was considerably lower than our CPM last month.
Note the 10% growth in impressions generated (230k last month to 256k this month) but the lower CPM ($3.12 last month to $2.26 this month).
I'm sure other community members will comment below/make posts about what the community can do to raise our CPM ;)
It's been fun to track the immense growth in our Alexa ranking as we see nearly every metric for LeoFinance on an explosive upward trajectory.
Alexa Ranking From the September Ad Report:
Alexa Ranking From the October Ad Report:
Today's Alexa Ranking:
Daily Revenues and Impressions
Our average daily revenue is continuing its upward growth trend. This month, we averaged $22.73 USD per day.
As indicated in the totals section (above), our ad impressions are on the rise. Increasing by 10% month-to-month with an average impressions per day of 8,286.
LeoFinance operates 4 main applications:
Hivestats used to be one of the primary drivers of ad revenue and traffic per day. We had nearly an entire month of downtime for Hivestats due to the hardfork and some of the data routes we used were not properly updated. After seeing these marked as "low priority" by Hive devs, we decided to investigate a workaround so that Hivestats would work once again.
It took some digging, but we managed to find a viable solution in the interim until the data feeds we use are properly updated. Hivestats went back online in mid-November. We saw a continual decline (as Hive users realized that they weren't able to utilize the site without the data feeds) until this fix was implemented.
After the fix on November 11th, some of the user base started using Hivestats again. We saw a jump in traffic and it has been slowly increasing again, but we are still averaging about 50% of the traffic that we used to get prior to the fork. As more users realize that Hivestats works again, we'll likely see Hivestats return to prior levels of page views.
LeoFinance has gained even more dominance in the past few months as our daily active users has grown exponentially. This is to be expected because https://leofinance.io serves a wider audience than just Hive. LeoDex and Hivestats only serve Hive users and LeoFinance.io gains a great deal of traffic and daily page views from outside of Hive entirely. This is a healthy trend, in my opinion.
Tokenized Attention is the Long-Game
As I mentioned at the beginning of this report, tokenized attention is our long-term plan to create intrinsic value for the LEO token economy. As our user base grows, we'll continue to see an exponential increase in the amount of monthly ad revenue we generate.
I recently did a podcast interview with @scaredycatguide on a (non-Hive) real estate podcast - Gualter and Mike's show. Their audience is primarily into real estate and other traditional forms of investing. They had me on to talk about LeoFinance and how their community could benefit from setting themselves up on LeoFinance.io full-time in order to create, earn and educate each other with their content.
One of their questions was about the intrinsic value of the LEO token. If users, investors and creators spend their time adding value to the platform, how does that value translate to the token itself?
This is a great question and one that our ad reports answer to a large degree. Mitch had a great point during the show: our ad program is in its infant stages and it has already seen some incredible growth thusfar. Imagine where our ad revenue is as https://leofinance.io gains a far greater level of traction and chases the daily impressions of a site like Seeking Alpha.
With millions of daily impressions, our ad revenue could be through the roof. This has always been our mission with tokenized attention: build an amazing platform and community. Drive new users, readers and engagement to the site and feed that exponential growth machine through ad revenue which is used to buy & burn LEO tokens off the market.
As Mitch and I explained tokenized attention on this podcast, their eyes lit up and this was something that they clearly understood. The model of bringing in money every single month and building a project on sound business principles (a revenue-first approach) makes sense to them. This is tokenized attention and this is the future of how LeoFinance drives exponential growth within our token-based economy.
Speaking of Burns
Over the past month, 6132.930 LEO was purchased from the market using ad revenue.
The current value of this is $1,484 USD although the LEO was purchased generally at a much lower price than today.
This month's LEO buys were burned this morning:
The account still has 2000+ HIVE leftover from the past month.
We brought in $704.55 USD in ad revenue in November (which is paid out in BTC). Today, we'll use this $704.55 USD to buy HIVE (roughly 5900 HIVE at today's price) on an exchange and send it to the @leoads account where it will be used to purchase LEO from the market throughout the month of December.
PSA: Click 1 Button and Support LeoFinance's Ad Program
Most of us in the crypto space use the Brave browser - myself included. I love the Brave browser but one thing that it does to LeoFinance is block our ads.
There is good and bad to this. The good is that every user has the choice to support https://leofinance.io if they don't mind viewing a few non-invasive ads on the sidebar of our pages.
The bad is that the default setting is "Shields On" which means that the majority of our traffic is unmonetized.
If you want to support the LEO token economy, please take the next 10 seconds to click "Shields Off" for https://LeoFinance.io (and LeoDex/Hivestats if you utilize those apps as well). 🦁
LeoFinance is a blockchain-based social media community for Crypto & Finance content creators. Our tokenized app allows users and creators to engage and share content on the blockchain while earning cryptocurrency rewards.
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