📜Background

1. Limitations of Traditional Digital Marketing

Over the past few decades, the digital marketing landscape has witnessed the rise of platform giants exerting significant control over users' personal data. Since the inception of the internet, a multitude of tools have emerged to monitor and analyze customers' online activities. These tools encompass various mechanisms, including cookies, email addresses, social media platforms, and even unique mobile device identifiers. As this technological evolution unfolded, digital marketing gradually fell under the dominion of major platforms such as Google (in search), Amazon (in e-commerce), and Meta & TikTok (in social media), which succeeded in monopolizing extensive user populations. For an extended period, advertisers and consumers alike found themselves with limited alternatives in the online marketing arena.

Nonetheless, the digital marketing landscape has recently undergone a substantial transformation prompted by stringent privacy policies enacted by major mobile platforms, specifically Apple and Google. In April 2021, Apple introduced the "App Tracking Transparency (ATT)" policy, affording users the agency to decide whether to divulge their personal data. Following this precedent, Google adopted a parallel approach, revising its policies to limit advertisers and third parties from accessing personalized usage data within the Android app ecosystem. This marked a profound transition within the digital advertising sphere, where platform behemoths traditionally exercised a monopoly over user data.

This momentous development has not only altered the dynamics of the digital marketing arena but has also initiated a fundamental shift in users' perception of their personal data. Users have come to realize that their personal information is no longer being employed solely for the benefit of these platforms; instead, it is a voluntary contribution made by choice. This paradigm shift holds significant implications for the digital market, signifying a pivotal transformation in the relationship between users and advertisers.

Impact of Enhanced Privacy Measures on Advertisers

The implementation of enhanced privacy measures in the digital marketing landscape has profoundly affected advertisers. During the growth phases of platforms when user privacy wasn't a significant concern, forward-thinking companies recognized the value of this approach. They devised methods to boost traffic and induce conversions, which later evolved into a novel online marketing methodology known as performance marketing – a strategy focused on driving specific actions, such as purchases or sign-ups.

However, the introduction of enhanced privacy measures in the digital marketing landscape has presented substantial challenges for advertisers. The effectiveness of traditional performance marketing has dwindled as these privacy measures have taken hold. Changes in public perception regarding personal data privacy have made it increasingly difficult for advertisers, particularly small and medium-sized ones, to implement precise marketing strategies based on users' consumption patterns.

With the exception of colossal platforms like Amazon and Google, which possess their own reservoirs of user data, the channels available for targeted marketing have become more restrictive. Many small and medium-sized businesses struggle to create their user pools due to the nature of their services and often lack the technical expertise to analyze and utilize user data effectively. Consequently, advertising effectiveness has dwindled, and avenues for acquiring user data have become more challenging to navigate.

Moreover, several credible studies have reported a decline in mobile advertising efficiency by more than fivefold since the introduction of App Tracking Transparency (ATT). This data underscores the substantial impact of privacy measures on the efficacy of mobile advertising and serves as an indicator of the evolving digital marketing landscape.

Impact of Privacy Enforcement Measures on Average Users

These privacy enforcement measures have not only affected advertisers; they have also significantly affected users. Users now experience certain limitations in their online experiences. While they appreciate the fact that their personal information is no longer used for unauthorized purposes, this newfound privacy comes at a cost—they are less exposed to recommended products and services they used to discover through giant platforms. Instead of having the opportunity to explore the broader mobile ecosystem, users find themselves confined to limited information.

For instance, consider a scenario where a user, who once received personalized product recommendations on their favorite online shopping platform, now encounters a non-tailored list of items. This user, while valuing their privacy, may lament the loss of tailored recommendations that once made their online shopping experience more efficient and enjoyable. Such real-world examples illustrate the impact of enhanced privacy measures on user experiences and frustrations.

Furthermore, users have come to realize the inherent value of their data. Yet, they find themselves frustrated by the lack of clarity regarding how they should be fairly compensated for their data and how they can share in the profits generated from it. While platform giants continue to monetize user data, users have not yet discovered a fair and transparent mechanism for compensation.

The current landscape of the digital marketing market underscores the importance of finding equitable solutions: users should receive fair compensation for their data, advertisers should be able to utilize it more efficiently, and ad intermediaries should work towards creating effective alternatives to digital advertising while safeguarding users' privacy. This juncture represents a critical moment in the digital marketing realm where these challenges need to be addressed comprehensively.

Why LMTLS is Needed in the Future Digital Marketing Market

The global digital advertising market is poised for remarkable growth, projected to exceed a staggering $600 billion annually by 2023. However, this growth is not without its challenges, particularly in the wake of intensified privacy measures. These challenges revolve around the need for efficient marketing practices and equitable compensation arrangements for both users and advertisers, spanning various digital platforms.

In response to these pressing issues, the LMTLS project is actively developing a cutting-edge digital marketing solution built upon an integrated loyalty ecosystem underpinned by blockchain technology. Our primary objective is to empower advertisers with the tools they need to engage in more precise and targeted marketing strategies while preserving the anonymity of LMTLS participants. Additionally, we aim to empower app/web services that aim to reach a global audience to provide enhanced loyalty program experiences to their customers, augmenting our commitment to fostering a dynamic digital marketing ecosystem.

For users, we prioritize data safety and fair compensation, implementing selective advertising and user-driven participation mechanisms. Throughout this journey, our overarching goal is to foster a dynamic and ever-expanding ecosystem that not only benefits participants but also ensures that rewards are commensurate with their contributions. The future of the digital advertising market hinges on innovative solutions like LMTLS, which are poised to redefine the landscape, safeguard privacy, and promote fairness in a rapidly evolving digital era.

2. Unifying Loyalty Systems: LMTLS vs. Traditional Points and Miles

LMTLS introduces an innovative approach to a loyalty platform, offering an alternative to the conventional digital marketing strategies. To understand the essence of this innovation, let's reexamine the traditional points and miles redemption experience.

Strategies to Tackle Limited Point Utilization

Mobile and e-commerce companies commonly implement loyalty systems to incentivize customer engagement, covering activities such as website visits, sign-ups, purchases, referrals, and more, with the aim of bolstering loyalty and fostering increased transactions. Yet, a prevalent issue arises—users frequently redeem fewer points than anticipated. This arises from users perceiving limited benefits in accumulating points, which, in turn, dampens their motivation for redemption. Effective loyalty systems thrive on user engagement, accumulation, consolidation, and redemption. A paradigmatic example of this lies in airline mileage programs. Here, customers accumulate miles through repeated engagements with a specific airline, and these miles translate into opportunities to secure flight tickets, maintain elite memberships, upgrade seating arrangements, and access additional perks. Airlines actively promote point utilization by demonstrating how these miles can be employed across a network of partner airlines, enhancing their overall value.

Low Redemption Rates: Operational Challenges for Providers

From the perspective of point providers, the prevalence of low point utilization poses operational challenges. Points are typically perceived as a form of monetary benefit to users and are accounted for as liabilities by providers. When points are accumulated and are not redeemed, they create a financial burden for the company, unless they are intentionally expunged. No matter how innovative and well-built a loyalty program is, its marketing and advertising efforts will be less effective if users do not perceive significant benefits or when the point redemption process becomes inefficient. These challenges can harm the business operations significantly. However, we should also note that most loyalty programs are not well connected or integrated. They are limited to specific services and do not offer a wide range of options like airline programs. This reduces the overall usefulness and impact of the loyalty programs.

The LMTLS Approach

The LMTLS project introduces a distinctive perspective on the utilization of points compared to conventional services. Instead of regarding points merely as tools for user attraction and retention or as debts demanding repayment, LMTLS sees points as valuable data blocks capable of recording a user's specific behavior within the online ecosystem. The project’s inception stemmed from the idea of using points to equitably record, harness, and reward users’ behavior across various services.

In response to this concept, LMTLS envisioned a comprehensive loyalty ecosystem that would allow users to voluntarily participate in a variety of mobile services while keeping their identities anonymous. LMTLS, founded on blockchain technology, issues points based on user behavior across various digital services as an integrated loyalty platform. This approach empowers users, granting them control over their digital service usage history.

LMTLS functions as a community loyalty platform, augumenting the value of points for both users and companies. The primary objective of the LMTLS project is to create a single ecosystem for users and mobile service and commerce providers through a community loyalty platform. With the expanding LMTLS user base, operators can enhance their services and attract new users by joining the unique integrated loyalty system of LMTLS. As the ecosystem flourishes, operators can use points to acquire users through targeted marketing campaigns. Eventually, as the LMTLS ecosystem attains critical mass, it naturally evolves into a platform capable of delivering precise digital targeted marketing services while safeguarding user anonymity, drawing insights from point issuance and usage data.