CyberGold Inc is attempting to promote a new way of advertising using the internet, where consumers are paid between $0.50 and $5.00 for viewing advertisements on the World Wide Web. The company says that current advertising on the web is following an ‘inappropriate model’, and failing to account for the interactivity possible between the consumer and the advertiser. Under the new scheme, banner adverts are shown bearing the CyberGold logo. If consumers follow the link, read information and answer simple questions, they get paid. CyberGold plans to extend the service to subscription forms, loyalty schemes, and also intends to launch a personalized Web page by the end of the year, tailored to individual profiles. CyberGold is attempting to take a share of Internet direct marketing revenues which it believes will be $6,000m business by the year 2000. It claims its service will be attractive to advertisers because direct mail or junk mail has only a 3% read rate, while incurring high costs, whereas CyberGold’s alternative will draw real responses, and costs less overall. The money consumers earn can be paid into a bank account, donated to charity, or spent online using CyberCash Inc’s CyberCoin Internet payment system. The service is currently available in North America, and is due to be offered in Europe by this time next year, presumably when the number of European consumer web users has reached a more significant number. Berkeley, California-based CyberGold was founded in 1995, has 25 employees, and is privately owned and venture capital funded. The service, if it draws in the advertisers and users, could make CyberGold a mint. It currently charges the advertisers a minimum of $0.50 per transaction.
