New technologies and processes are constantly emerging as we move further into the digital age. Blockchain is one of the most recent technologies we are learning about. We are also learning about how blockchain can be used in marketing.
This article will discuss blockchain and blockchain marketing, their pros and cons, as well as what future prospects marketers and advertisers have.
Let’s get started.
What’s the Blockchain?
Blockchain is basically a digital chain that holds a public record of transactions. Blockchain is a decentralized technology. This means that it can be owned and operated by no one individual or entity. This means that there is no middleman and technology is more secure.
What does middle man mean?
Consider what happens when you visit a bank. You must approve all transactions you make. The bank’s technology is what tracks your money. You can’t do a transaction if they tell you that, even if you have the money.
Blockchain holds many cryptocurrencies or digital money. Blockchain is not managed by anyone. Instead, it is a public ledger that is kept on a network. This means that the amount of crypto you have and the fact that you can send it to someone is accurate.
Blockchain technology is a great place to create and house cryptocurrencies such as Bitcoin and Ethereum. However, there are many other applications that can be used for marketing.
What does Blockchain Marketing mean?
Blockchain marketing is a term that refers to the ability to use Blockchain technology in a digital marketing strategy. Blockchain is used primarily for trading, buying and selling cryptocurrency. However, as more information becomes available, we will see more uses of this technology.
Marketing will also be one of the applications of blockchain we’ll find.
Marketing with blockchain can help to create a more secure relationship between brands, customers, and the ability to design more targeted ads without sharing data with many companies.
There will be many opportunities for brands as we explore blockchain technology. We will soon discuss the potential impacts and opportunities of blockchain technology.
The Pros and Cons Of Blockchain Marketing
Are blockchain marketing ideas a good idea? What are the possible implications of this technology for marketing? Let’s examine the pros and cons of this technology to fully understand its potential implications.
Blockchain Marketing: The Pros
There are some pros to blockchain adoption in marketing:
Blockchain is trusted
Data cannot be sold or stolen.
It stops fraud
It eliminates the need to have a middleman for both advertising and transactions.
It improves content monetization
Cons of Blockchain Marketing
Every rose has its own thorn. There are still pros to blockchain.
Sometimes data can still be controlled, such as when a single entity controls the majority of nodes
It is expensive
It takes a lot of energy
It will take time to see if the benefits outweigh any cons. Let’s look at some of the ways we might see blockchain’s impact on marketing.
How blockchain technology can impact digital marketing
What role could blockchain play in the marketing industry? Let’s look at some of the most significant changes and opportunities that the blockchain technology could bring to the digital marketing industry.
Viewers could be paid for their time viewing advertisements
Users are being bombarded daily with ads on almost every channel they use. There are constant sales pitches for everything, from billboards and television ads to websites and social media ads.
Blockchain could make advertising more transparent. Some of the advertising budgets companies use to pay could be used to compensate users for viewing a company’s ads.
Marketing executive for Shufti Pro in London, Damien Martin, said that people can opt-in and view ads in return for digital currency or token.
Brave, a browser program, already shows this in action. Their program allows users to opt in to view private ads and receive tokens that can be exchanged for gift cards or cryptocurrency.
This could prove to be a significant breakthrough in ad fatigue. Consumers will ask directly to see ads instead of having them appear each time they scroll down a webpage.
Data is safer and won’t sell
Our technology is now secure, but it’s not enough. How many times have emails been sent about data breaches at companies that hold your consumer data?
More than that, companies you provide your data to (even if your email address is not included) may sell it to other companies for a profit. Boom, you suddenly get subscribed to 12 new newsletters from companies you didn’t opt in to.
Blockchain technology can change that. Blockchain transactions are completely anonymous so you don’t need to worry about your data being stolen.
Another tool, Stacks has built a network decentralized apps which ensures that your data is not stored within these apps in order to use them. Stacks makes it easy to log into websites and apps without requiring certain data. Instead, it secures your data in their tool and logs you into other apps without sharing any of your data.
Marketing becomes more transparent and reliable
Some brands may claim that they sell 100% organic products. Can they prove this? When it comes to advertising and marketing campaigns, customers are likely to have doubts.
Blockchain allows brands to be more transparent and makes it easier for consumers to trust businesses. Blockchain allows businesses to show different transactions and can be used to prove their supply chain process.
Customers can see exactly where products are made and where they came from. Martin explained that Martin could also tell customers “if the product is organic” or “if the farmer involved in the supply chain was compensated fairly.”
This information will have a huge impact on competition. Companies that were once preferred by consumers will lose their favor if they have a more ethical supply network.
This is a good thing. This allows small businesses to be trusted more easily and gives them an advantage in the market, especially against big-box stores.
More accurate leads can be gathered by businesses
Blockchain is not only beneficial to consumers, but also for businesses. Brands are currently collecting customer data via cookies. This data is used to inform retargeting campaigns as well as email funnels. Some of these campaigns are a huge waste of money because not all data is accurate.
Blockchain will allow companies to obtain more precise leads as they can get the exact data directly from customers.
How is this possible? We have already discussed how blockchain technology is safer and does not give customer data.
The customer would then be required to hand over their information and data. Similar to Brave’s ad-compensation program, the customer would feel incentivized by Brave to give their data and information to Brave. This could be done through tokens, discounts, or other forms of compensation.
The customer opting in will allow companies to collect more precise lead data, which will enable them to market more effectively.
Advertisements may be more affordable
Online ads must be run through a trusted platform like Facebook or Google. They can set their own prices because there is a small market for ad platforms. This is how they generate $43 billion and $32 million in ad revenue per quarter, respectively.
Blockchain technology allows brands and websites to verify their ad space. This makes it possible for them to work directly together without the need for a middleman.
This means that ads will be cheaper and more affordable over time, and it also means that brands will have more precise data and metrics about their ads. This will allow them to track exactly how many people have seen their ads.
Brands will also be able see all transactions on the Blockchain, which can be seen publicly. This means that they will be able track which purchases were made as a result of their ads, and where those advertisements were placed.
Conclusion
There are always questions and concerns about the viability and security of new technologies. Blockchain technology has many benefits, especially in the marketing sector.
While blockchain marketing will take time to become mainstream, it is important to understand the trends and to be able to adopt new tools and best practices in your marketing strategy.
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