As we move further in the age of digital the latest technologies and processes are popping up. One of the most recent technologies that we’re studying is blockchain. We’re also discovering how blockchain can be applied to marketing. In this piece, we’ll examine what blockchain – and the Blockchain Marketing, as well as it’s pros and cons and what advertisers and marketers are likely to see in the near future.
Let’s get started.
What is the Blockchain?
Blockchain is basically an electronic chain of blocks that holds an open ledger of transactions. Blockchain is a decentralized technology meaning that no one individual or organization owns or manages it. This means there’s no middleman which makes the tech more secure. What exactly is middleman? Consider your options when you visit an institution. The bank must accept any transaction you conduct, and their technology is the sole thing keeping an eye on your cash. If they tell you that you cannot perform a transaction, it’s this, even if you have the funds.
But, it also holds various cryptocurrencies also known as digital currency. Since no one manages the blockchain–it’s instead an open ledger maintained by a network, the amount of cryptocurrency you own is always accurate, and you’ll always be able to be sure of that number, as well as the fact that when you give some to someone else, it’s bound be processed. Blockchain technology is the best place to create and house cryptocurrency such as Bitcoin and Ethereum There are many other applications that are more diverse, including marketing.
What Does Blockchain Marketing Mean?
If you’ve heard of “blockchain marketing,” it’s most likely referring to the capacity to utilize blockchain technology in an overall online marketing plan. Although blockchain technology is used mostly for purchasing or selling items, as well as trading cryptocurrency, we’ll begin to find more applications as we discover more about this technology.
There are some blockchain-related applications which we’ll explore will apply to marketing.
Blockchain marketing could make a stronger connection between customers and brands which allows them to create more specific advertisements without having to share information with multiple organizations. As we move further into Blockchain technology, it’s likely that there are numerous opportunities to can be accessed by brands. We’ll talk about these opportunities and the potential impacts will appear like in the near future.
Pros and Cons of Blockchain Marketing
Blockchain in marketing is beneficial? What are the consequences of this new technology? Let’s examine some positives and negatives to be capable of understanding the full extent of the possible changes.
Pros of Blockchain Marketing
There are some pros of blockchain’s adoption in the marketing field:
- Blockchain is reliable
- Data cannot be sold or stolen.
- It also prevents fraud
- It removes the necessity for a middleman to be involved in both advertising and transactions.
- It improves the monetization of content
Cons of Blockchain Marketing
Of course every rose has a torn. There are still some negatives of blockchain:
- Sometimes, data can be controlled, such as the case where one entity controls the majority of the nodes
- It’s costly
- It is a huge amount of energy
It’s too early to tell whether the pros outweigh negatives. Let’s look at the ways we can begin to recognize the effects of blockchain technology on marketing.
How Blockchain Technology Can Impact Digital Marketing
What will blockchain’s role in the world of marketing appear like? Let’s look at the most significant developments and opportunities that blockchain technology could provide to an industry of digital marketing in the near future.
Users could Earn Money by Ad Views
In the present consumers are bombarded with advertisements on every channel they choose to access. From billboards and television ads along the highway, to social media and online advertisements, there are always advertisements for buying. But, with blockchain it is possible that the experience of advertising be more precise. In reality there are some instances where the budget companies have to pay for advertising could be changed to provide some kind of reward for users who see advertisements from a company.
Damien Martin, marketing executive at Shufti Pro in London Shufti Pro, says that blockchain technology allows “People can opt-in to view ads in exchange for digital currency or token.” We’ve already seen this taking place with the browser software Brave. Brave has created a program that allows users can sign up to view ads that are private, and receive tokens that they can use to exchange to purchase gift cards or cryptocurrency to do so.
The potential for this to become a game changer for issues like ad fatigue because people will directly ask to see ads rather than seeing them each when they scroll down on a page.
Data is more Secure and Won’t be Sold.
The way technology operates currently is secure but not enough secure. What number of times have emails about data breaches by firms that handle your consumer information? More than that there are companies that provide your personal information to (even even if it’s only your email address and name) sell the data to other businesses to earn a profit. Then, boom you find that you’re enrolled in twelve company newsletters you didn’t opt-in to.
Blockchain can in transforming all the above. Because transactions on blockchain are totally anonymous and secure, you don’t need be concerned about the security of your personal information being stolen.
The other tool is Stacks which has been created by Stacks, is a decentralized network of apps which ensures that your information doesn’t require storage within the apps to access these apps. Think about how accessing specific websites or apps requires specific data. This is no longer an issue for the Stacks. Instead, it keeps your data safely in their application and then uses it to allow you to access other applications without sharing your personal information.
Marketing becomes more Transparent and Reliable.
Some brands claim to be selling products that are 100% organic. But are they able to prove it? People are naturally skeptical about advertising and marketing campaigns.
However, with blockchain technology the companies can be more transparent, which makes it much easier for customers to build trust with companies. Since blockchain records transactions of all kinds that businesses can make use of it to demonstrate their supply chain operations.
It is possible for customers to determine exactly where items came from, how they were produced using what materials. “For instance,” Martin further explained, “if the product was really organic or if the farmer in the supply chain was paid fairly.”
This kind of information will have an enormous impact in the face of the competition. Companies that might have been popular in the past may be replaced by companies that have an responsible supply chain since consumers are becoming more conscious of their buying choices.
This is a great thing. Small firms can be more trusted and give them an advantage on the market particularly when compared to large-box stores.
Businesses can Collect more Precise Leads
Blockchain is beneficial for businesses and not just for consumers. Today, brands collect data about their customers via cookies. This is then used to inform marketing campaigns that retarget customers and email funnels. But it is not always the case that this information is exact, which means that certain campaigns an enormous expense. Blockchain technology will allow companies to be able to obtain more precise leads. Since they’ll get the exact information from customers themselves.
What’s taking place? We’ve talked before about the advantages of blockchain technology, which is secure and does not share the customer’s data. In this scenario the client would be providing their data and details themselves. Similar to Brave’s advertising compensation program, the client is enticed to do by offering discounts, tokens or any other type of compensation.
Since the client will be opting in for themselves and thus the lead information companies collect will be much more precise and will allow them to advertise more efficiently.
Ads could become Less expensive.
If you’re looking to advertise online it is necessary to use a reputable, or at a minimum, reliable platform such as Google and Facebook. Because the market for ads platforms is small and they’re able to basically set their rates. This is the reason they’re making $32 billion and $43 billion in quarterly the form of ad revenue. Blockchain technology allows brands and websites with ads are automatically verified. They can cooperate in real-time without the need to who can inflate the costs of ads.
This doesn’t just mean that advertisements could be less expensive and cost-effective in the near future. But it also means that advertisers will be able to collect more accurate metrics and data from their advertisements. They’ll be able to pinpoint exactly the number of people who were exposed to their ads, which makes advertising tracking much more efficient.
Additionally, since every transaction on blockchain are publicly accessible and accessible to the public. Companies will be able to determine the purchases that came as directly as a result of their ads, and the exact location of those ads.
Conclusion
Every time a new technology makes its way into the limelight there will be concerns and doubts about its security and the viability. However, blockchain technology provides us with many more benefits than disadvantages, especially in the field of marketing.