> For the complete documentation index, see [llms.txt](https://protocol.publishinc.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://protocol.publishinc.io/tokenomics/advertisers.md).

# Advertisers

Advertisers are newly included in the PUBLISH 2.0 tokenomics model to ensure a sustainable revenue stream, provide additional incentives for publishers, news creators, enhance the utility of $NEWS tokens, and drive platform engagement and growth. By integrating advertisers into the ecosystem, PUBLISH 2.0 can create a more dynamic, rewarding, and sustainable environment for all participants.

## **Key Components**

1. **Advertisers and Ad Space Purchase**
2. **Ad Revenue Sharing Pool**
3. **Reward Distribution**
4. **Token Flow and Tokenomic Impact**

### 1. Advertisers and Ad Space Purchase

**Advertisers** can use $NEWS tokens or stablecoins to purchase ad space on the platform. This ad space can be targeted to specific audiences based on content type and user demographics.

* **Targeted Advertising**: Advertisers can target their ads to specific user segments to increase ad effectiveness.
* **Ad Space Purchase**: Advertisers buy ad space using $NEWS tokens.

### 2. Ad Revenue Sharing Pool

**Ad Revenue Sharing Pool** is created to distribute a portion of the ad revenue to publishers, and users.

* **Revenue Collection**: $NEWS tokens paid by advertisers for ad space are collected into the Ad Revenue Sharing Pool.
* **Revenue Allocation**: A portion of this pool is distributed to content creators, publishers, and users based on engagement metrics and contribution.

### 3. Revenue Distribution

**Distribution Mechanism** ensures fair and proportional sharing of ad revenue.

* **Publishers**: Receive a share of the ad revenue for hosting and managing content based on the engagement their content generates.
* **Users**: Earn rewards for interacting with ads and engaging with the platform.

### 4. Token Flow and Economic Impact

**Token Flow** illustrates how $NEWS tokens circulate within the ecosystem, promoting economic activity and engagement.

#### **Token Flow:**

1. **Advertisers → Ad Revenue Pool**:
   * Advertisers purchase ad space using $NEWS tokens.
   * Flow: $NEWS tokens are added to the Ad Revenue Sharing Pool.
2. **Ad Revenue Pool → Publishers**:
   * Publishers receive a share of the ad revenue based on the engagement their content generates.
   * Flow: $NEWS tokens are distributed to publishers.
3. **Ad Revenue Pool → Readers**:
   * Readers earn rewards for interacting with ads and engaging with the platform.
   * Flow: $NEWS tokens are distributed to readers.

#### **Tokenomic Impact:**

* **Increased Demand for $NEWS Tokens**: As advertisers purchase ad space, the demand for $NEWS tokens rises.
* **Enhanced Utility**: $NEWS tokens gain more utility by being used for advertising and revenue sharing.
* **Engagement and Growth**: Incentivizing user engagement with ads promotes platform growth and user activity.
* **Revenue Generation**: Publishers and readers earn additional revenue streams through ad placements and engagement rewards.

<figure><img src="https://1285756329-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F7tOq8h6reODZfX4Y9ivB%2Fuploads%2F7AoJ9TGLb5BtkEVUugwE%2FUntitled%20diagram-2024-05-28-062241.png?alt=media&amp;token=5a48995c-4760-47d2-a654-5d040df35fed" alt=""><figcaption><p>This diagram now clearly illustrate the roles of advertisers, publishers, and readers within the PUBLISH 2.0 ecosystem. It shows how ad revenue is collected into a pool and distributed among publishers, and users, ensuring a fair and engaging platform.</p></figcaption></figure>