Blockchain is still “the great unknown” in the world of digital marketing
Most commonly associated with cryptocurrencies, marketers most often relate its importance to the world of financial transactions, not being fully aware of its power to crucially transform all other transactions too and create a completely different business environment. Its transformational power lies in the fact that it enables secure and verified transactions between two parties, without any need for third-party verifications.
These are only some of the changes it will bring to the world of digital marketing.
Blockchain is going to seriously affect the way we do advertising, as it will bring power back to those who it belongs to – the consumers. The current system is based on companies having to pull data they need from their customers in order to personalise their services. On the other hand, customers are accepting these predefined conditions to get personalised offers. Whenever we make a simple purchase we are asked to give away our information – our phone number, email address, home address, and sometimes even more sensitive data. In the eyes of companies, this data is treated as a type of their ownership, which they can use in the way they find it appropriate, and sometimes even sell it.
By using blockchain technology, such this type of data collection will become obsolete and there will be no need for third-parties to stockpile your information and keep it on their servers. Consumers will be able to give away their data directly to companies they choose and allow them to use the information for producing targeted campaigns, and get adequately compensated for it. New technologies, based on blockchain, such as Blockstack , can protect your data for big internet companies, making it possible for users to provide their data in order to unlock certain apps, and have their data returned to them as soon as they finish using the app.
On the other side, marketers will also benefit from blockchain technology, as they will be able to get data they need directly, legally and transparently, while also creating the customer profile on the most relevant source – the customers themselves. Furthermore, they will be able to verify the delivery of advertising, control the frequency of advertisements delivered and directly measure their effectiveness.
No marketing middleman
The use of blockchain technology could render marketing middleman obsolete too. Today marketers rely on third-parties to manage their advertisements, mostly serving as a source of verification, making both parties feel secure about the ads. It’s the way Google AdSense functions, for example, and Google makes a pretty good profit out of charging fees for their part in the process of connecting website owners and advertisers.
Blockchain can make this verification through its own network. Companies involved in digital marketing could avoid all costs related to intermediaries, while at the same time, still having their transaction secured. They will also have more control of the process, as they will be certain that they are paying for genuine clicks, and not clicks coming from bots.
Transparency and trust
Blockchain will be highly appreciated both by marketers who will now be in a position to provide some clarity to their customers, and consumers who are longing for transparency. This especially is the case when it comes to Millenials, who are now the generation with the most purchase power, and who make purchasing decisions considering themselves, society and the planet. Generation concerned with sustainability is loyal to transparent brands and is ready to pay for this transparency, both with their money and their loyalty. They, but many other consumers too, want to know whether the clothing item they are wearing was produced by child workers in inhumane environment, or in a textile factory where workers have decent working conditions and are paid fairly. Marketers will have no trouble verifying the information on how and where their item was produced, or when we are talking about the food, how and where it was grown.
Other relevant innovations
There are other ways blockchain can influence the world of digital marketing, bringing many benefits to all sides. Here are some of them:
- Loyalty programs – Some companies, such as Chanticleers Holdings, are already using Blockchain to create their own cryptocurrencies and use them as a reward in their loyalty programs. This trend will continue with many opportunities to grow, as several retailers can use the same cryptocurrency, and rewards could be passed between them.
- Smart contracts are alredy being used in B2B environment, with Blockchain used to verify them and each transaction related to the contract. This is a huge chance for marketers to leverage influencer and social media marketing.
- Using protected content – With the use of Blockchain, marketers will have less trouble with acquiring rights to use content from their authors. For example, Kodak has announced that they are working on developing service that will pay photographer whenever their photo is used by a company or an individual.
Still, for each of these innovations to reach their full effect, compatible systems and applications need to be created, and the whole market needs to be prepared. The early adopters will have the greatest benefits, and if you’re not in the position to be one of them, at least try not to fall behind.