Blockchain technology is still relatively new but has already played a significant role in changing the world around us. Most popularly used in finance and cryptocurrencies, blockchain has also been integrated around several other industry segments including healthcare and marketing.
Although still in its nascent stage, marketers are keen to know how blockchain can impact and optimize their workflows. In this article, we will look at how blockchain is currently used in the field and how its applications are likely to grow in the future
What Is Blockchain Marketing?
Blockchain has three key elements, namely transparency, security and accessibility. The technology along with these 3 elements has the potential to transform the advertising and marketing environment, allowing consumers to own and sell their data directly to advertisers and marketers. It also means that consumers will be able to circumvent questionable social media platforms that rely on ads and instill greater trust and usability of consumer data.
Blockchain facilitates the direct exchange of data between consumers and brands in a completely new way. Most social media platforms generally collect data by monitoring user activity, the resulting information tends to be of low quality but more importantly for them it is free. Along with it comes the negative trust a consumer has for this kind of surveillance. Using blockchain, marketers and advertisers will be able to cut out the middleman entirely, creating a direct link between advertisers and consumers.
3 Ways Blockchain Will Revolutionize Marketing
Marketers anticipate that the integration of blockchain will transform the digital advertising landscape in particular. Instead of consumers willingly surrendering their personal data to social media platforms, they will be able to own their data and can be directly compensated for it. This will benefit digital marketers too as they will be able to accurately leverage consumer data to create targeted advertising personalized to each individual.
Currently, marketing heavily relies on data and blockchain makes data accurate, transparent and reliable. Let’s look at some of the ways blockchain will impact marketing.
1. More Democratic Marketing
Blockchain will tip the status quo previously held by social media platforms and other companies that collect data back to consumers. Consumers will be able to choose the kind of ads they want to be exposed to in exchange for digital currency or tokens. This will enable consumers to directly be compensated for viewing ads and for providing access to their personal data as well.
2. More Reliable Marketing
Blockchain provides transparency regarding where products were manufactured and sourced from. This will improve the credibility of brands and allow consumers to know if the product is really organic as it claims or whether the farmer in the supply chain was compensated fairly. It allows supply chains to become more straightforward while allowing consumers to be confident in the products they purchase and know that the product labels are accurate.
3. Cheaper Ads
Without having to deal with a middle man, the expenditure on digital marketing will be decreased for marketing teams. It will allow ad metrics to become even more accurate without relying on a third party. When advertisers deal with third parties, it makes ad tracking difficult, but using blockchain will make that information readily available for marketers. That will further allow marketing teams to accurately measure the return of investment on their advertisements.