Zapvertising is in the very early stages; exploring the concept of advertising through the Lightning Networks native messaging system or accompanying nostr messaging event with a Lightning payment has started to develop a following.
Sending text alongside a Lightning payment is nothing new; it’s a standard feature that could be used to pass on any message with a payment. These Lightning notes could be used as a method of identifying a payment, such as adding a payer name, invoice number, etc, but it is optional with a payment. You don’t have to use it, and many do not, until now.
Ads rule the internet; our eyes are constantly bombarded with them on websites, social media, and even your preferred email client. Ads seem like an inescapable black hole that is part of being an internet user.
So it was only a matter of time before someone combined the idea of Lightning payments and ads; someone was always going to figure out how to use these notes to promote themselves or their business.
Due to the prevalence of advertising online, many of us are starting to shut it out; with ad blockers, sponsored content filters and saying hell no to your damn website cookies. There is no incentive to see so much advertising, so why do it?
As more people tune out, ads will have to evolve, and one method advertisers can use to cut through your filters is if they offer you a little spare change for renting your screen time.
What is Zapvertising?
Zapvertising has emerged as a new form of advertising that uses the Lightning Network messaging system to deliver ads to users and provide an incentive to receive or view these messages. The Zapvertising system allows advertisers to send small amounts of Bitcoin (Satoshis) to promote their messaging.
Zapvertising has its roots deeply embedded in nostr, with the first forms taking the shape of accounts zapping notes to attract the attention of nostr users. Blockstream has run a few Zapvertising campaigns to great success. This Zapvertising model relies on generating goodwill and the reaction of users to share Blockstream’s notes, talk about Blockstream, or mention them in comments.
The one downside of this method is that there are already tools in most nostr clients to turn off zap notifications if you feel this is an annoyance.
The other Zapvertising method that sprung up involved zapping a note or a user with a message included, and that message is pinned with the note at the top of the replies to it, or it is listed under the users’ zap counter on their profile for anyone to see.
Zapvertising to the wider Lightning Network
Zapvertising might have been bred inside the nostr ecosystem, but it has started to spread throughout the wider Lightning Network with the help of Zapvertising platforms springing up, making it easier to message Lightning Network users. Â
Using this method, an advertiser would craft a message and then set out the fee they would like to pay to broadcast to the number of users subscribed to that Zapvertising platform. Once the advertisers’ Lightning invoice has been settled, the Zapvertising platform distributes the Satoshis minus their fee and relays the message to all subscribers.
This method has grown in popularity over the last month, and if you have a Lightning wallet, you might have seen some of these messages sneak into your transaction list.
How does Zapvertising work?
The Zapvertising process is straightforward. Here’s how it works:
- Users opt into Zapvertising networks:Â Custodial Lightning users would need to opt into a Zapvertising service using their Lightning address or enable their Lightning node to receive Zapvertising.Â
- Advertisers create ads: Advertisers create ads they want to distribute to Lightning Network wallets/users.
- Advertisers send ads to users: Advertisers send their ads to users via the Lightning Network messaging system, paying each user a fee to receive the message; this fee can be as little as one satoshi.
- Users receive ads and get paid: Users receive payment in their Lightning Wallet with an advertising copy in the notes section of the payment.
Platforms offering Zapvertising
If you would like to set up a Zapvertising campaign of your own and spend a few satoshis to see the reaction you would get from the user base, then consider the following platforms.
| Platform | URL |
|---|---|
| Eagle Sats | eaglesats.com |
| Satogram | satogram.xyz |
| Sats For Ads | satsforads.net |
Benefits of Zapvertising
There are several benefits to Zapvertising, including:
- Targeted ads: Advertisers interested in reaching Bitcoiners have an active list of users they can broadcast with their products, deals, offerings, and services or to remain top of mind branding-wise.
- Low cost: Zapvertising has a low barrier to entry since you can start sending users messaging for as little as one satoshi.
- User-friendly: Zapvertising platforms are easy to use; even an on-chain-monkey ordinal jpeg owner could use them.
- Â Decentralised:Â Zapvertising relies on Lightning, a decentralised network, meaning no single entity controls it, making censorship harder to enforce.
Tips for handling zapvertising
Zapvertising subscribers should have a burner wallet for several reasons:
- It protects their privacy and anonymity by keeping their personal information and transaction history separate from their zapvertising activities.
- It enhances security by providing extra protection against potential hacks or scams.
- It simplifies your Lightning experience by keeping your Zapvertising funds and messaging in one wallet and separate from your actual Lightning activity.Â
Concerns over Zapvertising
Like any new development in Bitcoin, there are trade-offs and concerns around it; while Lightning is an open-source platform that anyone can use and can spend their sats as they like, questions do arise, such as:
Payment vs. Spam
The intriguing twist is that recipients receive a payment with the ad. Does that make it less spammy? Does it justify being able to send me nonsense as long as you pay one satoshi? How do we price out crappy ads before your wallet is a dumping ground for boner pill ads?
Preventing Zapvertising
If this trend gains momentum, the community must find ways to regulate it. Some Lightning Network wallets and nodes are already responding by tweaking minimum HTLC sizes to filter out small payments, while others are looking into auto-deletion of content. As the amount of messaging increases, wallet updates and new software will help curb or manage this trend and give users more control.Â
An avenue for scammers
Zapvertising is a reminder that the Lightning Network continues to evolve, and with many first-time Bitcoiners using these services, there’s a group of naive users who might be subject to scams as scammers have direct access to them via their wallets.
Building out a CPC and CPM for Zapvertising
Advertising is still a novelty use case for Lightning, and for it to develop into a viable option for brands, it will need to add additional targeting data, which may be intrusive but carry an additional premium to access.
Additionally, zapvertising will need to provide a CPM and CPC to give advertisers an idea of its efficacy and if it is worth allocating some of their ad budgets to the medium.
- Cost per mille (CPM): The cost per 1,000 impressions would allow for easy comparison with other platforms and budgeting for impressions-based campaigns.
- Cost per click (CPC): The cost per click-through would enable performance-based campaigns and provide a direct measure of effectiveness.
Metrics are crucial in establishing Zapvertising as a viable advertising medium by introducing transparent metrics such as cost-per-mille (CPM) and cost-per-click (CPC). These metrics provide advertisers with a clear understanding of the cost-effectiveness of zapvertising campaigns and allow them to make informed decisions about allocating their ad budgets.
Providing these metrics would enhance the transparency of zapvertising and increase its appeal to advertisers seeking measurable results.
By addressing these two critical areas, advertising can mature from a novel experiment to a robust and competitive advertising platform, attracting more advertisers, users and liquidity.
However, these additional metadata requirements would require a careful balance between precise targeting and user privacy, ensuring a sustainable and ethical model for the future of advertising.
Do your own research.
If you want to learn more about Zapvertising, use this article as a jumping-off point and don’t trust what we say as the final say. Take the time to research, check out their official resources below or review other articles and videos tackling the topic.
