4 Important Ways Blockchain Will Change Digital Marketing and Advertising
When it comes to blockchain, most people think it is about cryptocurrencies, finance, and digital ledgers. This makes sense as blockchain is a tech supporting Bitcoin, a currency that is attempting a financial disruption in its form. However, many don’t realize that the blockchain has huge power to disrupt as well as solve problems in the other sectors or industries too. One such promising area is marketing and advertising.
Only in advertising, the blockchain-based protocols can change how the online ads are purchased, measured, delivered, and valued. This could also lead to precise data for ad tracking which can give better overall returns. This article will go over the top four ways a blockchain marketing strategy can contribute to the advertising as well as marketing space.
What is Blockchain Technology?
Blockchain can be understood as a digital and decentralized technology that is growing and making its mark in different sectors such as digital marketing and advertising. The blockchain technology keeps a complete record of transactions that happen on different peer-to-peer networks.
This list of records has been growing continuously. Such records are securely secured in different decentralized and interconnected systems. Since there is no centralized point in a blockchain, there is no single point of vulnerability, and hence, it is less vulnerable.
Today, blockchain technology is also growing in the advertising and digital marketing industry. This is revolutionizing the relationship between the businesses and the consumers. Blockchain enables several transactions between two parties without needing a third-party verification.
Although most of the uses of a blockchain have been around crypto-currencies and finance, these can also be huge for digital marketing and advertising.
Blockchain technology aims to increase transparency in different sectors of business. This is because most of the information is digitally stored. Such information can’t be deleted or tampered. Thus, blockchain enables a company to check the exact use of the funds and whether the audience is receiving them or not.
To get a better idea about blockchain technology, one can refer to different online blockchain tutorials for getting a good grip on it.
How Blockchain is Transforming Advertising and Digital Marketing
Blockchain can solve several problems in the digital marketing and advertising domain. The four important ways in which blockchain can transform digital marketing and advertising are as follows:
1. Better Trusted Ad Buys
Online advertising in the current times can be quite tricky. Advertisers and digital marketers know that getting accurate data can be nearly impossible. Out of all the clicks you might get, many might not be real. Bots or in some cases, people may be hired to only click on the ads all day.
This is mainly done to inflate the statistics. In 2016, more than $7 billion was lost because of bots. It can thus be costly and challenging to get a clear picture of the ad buys. This can be changed with the help of blockchain technology.
Security and transparency are the most fundamental points of the blockchain. Each block or transaction is created, secured, verified, as well as enforced on the chain. This impacts digital marketers and advertisers as the chain is more transparent and secure. Advertisers and marketers can quickly identify the views of the target audience. This can save millions of companies every year.
2. Reduces the Process of Ad Buy
Traditional advertising and digital marketing usually have a middleman where the process of ad buy is done. Blockchain technology can help in cutting out the middlemen completely. The publishers who cut out the middleman, whether it is blockchain or not, can easily increase their cost per impression (CPM), right from one dollar to more than five.
In the absence of the middlemen in the ad buy processes, advertisers and marketers can easily reach the target audience directly and pay the audience to view their ads. For example, one can use Basic Attention Token (BAT) for making advertising and digital marketing more effective and efficient. Such a platform also lets one exchange tokens between the advertisers, publishers, and the users on the Ethereum blockchain.
Additionally, advertisers can fork out tokens based on the mental engagement of the users. This would also help in increasing the ROI of the ad by creating a better connection with the consumers.
3. Builds complete profile of the Customers
The technology of blockchain can revolutionize the way how advertisers and digital marketers build customer profiles. In a blockchain, one can easily get the complete information of the customer instead of bits and pieces of information. One only needs to know about audience targeting beforehand as it is important to know about the users for whom this is intended. Agencies that provide local SEO service can help a business in targeting their audience.
Since blockchain transactions of a consumer are decentralized, it might be impossible to obtain consumer data with the help of traditional means. When it comes to digital marketing and advertising, one can pay the customers directly for their purchasing data or personal information, instead of getting random data. Although this might be costly, there is more ad spend on other campaigns and one might not even get accurate data.
A big benefit of paying customers directly is that they would willingly give their information to you. This also gives an accurate target for the business to hit.
4. Blockchain is Exceptionally Transparent
Online advertising and digital marketing need the confidence to buy and this is what every marketer and advertiser aims for in their campaign. This is one of the main reasons why influencer marketing has a good ROI.
When a consumer hears about your product or service from a trusted source such as an influencer, they are sure to have fewer reservations about purchasing a product or service. The digital ledger of a blockchain helps in letting the customers get a transparent view of each product, right from the manufacturer to the seller.
Taking an example, in case a customer wants to purchase an expensive and branded luxury product, they can easily access the digital ledger of that product and check if it is real. This gives ultimate control, to the consumers and also provides a great user experience. It also helps the advertisers and digital marketers to give instant confidence to buy to the customers.
Some brands are also using blockchain transparency to enhance the level of marketing in uncommon ways. For example, the fashion brand Babyghost has implemented blockchain technology for telling a story about its products.
Blockchain technology is a relatively new concept in the market. Today, a lot of importance is given to blockchain technology as it provides the best user experience to the consumers. Highly targeted ads, better user experience, higher security, fewer pop-ups, as well as encryption for company and customer data, is something that will encourage the consumers to interact with the brands.
With the given level of customer insights one can enjoy along with the changes that can be anticipated in terms of ad spending, blockchain technology is sure to improve the overall ROI exponentially.
With a significant increase in ROI, it is recommended that blockchain technology should be implemented in digital marketing efforts. Taking expert help from professionals can be a good idea in this regard.