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Consumers given online marketing power

Social & Digital

Consumers given online marketing power


Online traffic service provider Peer2 has introduced a platform that operates on the premise of peered marketing, where consumers become the marketers in exchange for earning points redeemable for merchandise.

The company operates on a cost-per-click revenue model, at 25 cents per engagement. According to co-founder of Peer2, Joey Caroni, the business model relies on the theory that peer endorsements increase click-through rates.

“We’re not charging brands when someone posts content. We only charge the brand when someone clicks on the content,” Caroni says.

When a consumer becomes a Peer2 member they are assigned a URL to embed in blogs or any of the supported social network sites, from Facebook and LinkedIn to Twitter – delivering the content (from video games to personality quizzes) via the platform earns the member points.

Participating brands include Ducati, Energie and Miss Sixty.

Forrester Research principal analyst Lisa Bradner believes Peer2 management understands the challenges related to reaching people in social networks but they will walk a fine line to figure out how to take advantage of exposure in social networks without blowing the system.

“That’s the challenge – whether it comes from a brand or a friend, inauthentic, or coming to you from every person in your social network 24/7 – because at some point people will say, ‘Enough! Go away’. It’s potentially interesting, but has to be very well managed,” explains Bradner.

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