Digital marketing has entirely changed its game plan in the last decade or so, partly thanks to blockchain technology. From innovative solutions in social media marketing to adopting new strategies for collecting user data – the market has thoroughly evolved.
While data analytics and AI are weaving their way in digital marketing, another technology that has the potential to revamp digital marketing is blockchain. This technology could fundamentally change the schematics for digital marketing.
Blockchain in Digital Marketing
The success of bitcoin’s working protocol has largely been due to blockchain. Its solid principles are currently being explored for all sectors ranging from healthcare to human resource management. Let’s explore the ways in which blockchain can transform the digital marketing industry.
It is true that digital marketing has upped its game. However, along with it, new concerns have surfaced particularly pertaining to user data. These days, there’s a lot of debate around the way in which every small detail of a user is acquired and used.
Furthermore, instances of centralized hacking and leaking of a user’s private data are increasingly becoming common. Blockchain can help secure consumer’s data by storing it on its secure database. Additionally, it can also protect consumer’s private data by giving control back to the users regarding what to share.
Bitclave, a blockchain startup, enables users to control their identity and protect their data by giving them control over their personal information. It further uses blockchain to reward customers for sharing their data with marketing teams.
Online Digital Advertising
The present structure of showcasing online ads is highly inefficient, expensive, and complex. Advertisers need to pay heavy fees for displaying their ads on websites or online platforms. This does not essentially reach the target audience. The only party gaining maximum benefits are intermediaries like Google or Facebook.
Blockchain-based companies have started harnessing the technology to introduce a concept that is more straightforward and benefits all the parties. A company called Brave uses the blockchain to enable users to decide the kind of ads they wish to see. Using Basic Attention Token (BAT), users can reward the companies or content creators.
Trust and Transparency
The evolved digital market has grown to be opaque and filled with intermediaries. Advertisers spend millions of dollars each year to showcase their products. However, the actual clicks on the ads are not always accurate. Bots or people hired can completely change the statistics by showing fake clicks.
Blockchain technology has trust and transparency at its core. It can provide the infrastructure that ensures the verification of the clicks on their ads. This can potentially save millions of dollars in advertising.
MetaX, a blockchain startup, uses blockchain to provide more transparency in the advertising supply chain. It provides a list of websites that offer low-fraud space for advertisements.
Innovations with Blockchain
Blockchain-based smart contracts also open up possibilities for innovative solutions in digital marketing and digital assets. Smart contracts can open up the way for cross-promotional marketing wherein users can buy the content creation from social media platforms.
Crypto airdrops are another innovative approach to marketing for new blockchain projects. It basically involves giving rewards in the form of tokens in exchange for brand recognition, promotion, or the users’ loyalty.
Blockchain can further be used to create a tokenized currency to introduce loyalty programs. Through tokenization, a brand can create its own currency that can later be used by its customers as rewards. Companies can also hand out rewards for customers spending more time on their platform or buying goods or services from their company. Blockchain tracks and ensures verification in this process.
Loyyal is one such platform that uses blockchain tokenization for customer loyalty programs. It further helps their marketing teams to devise personal promotional services by tracking their loyalty tokens.
The impact of blockchain on digital and online marketing can be huge. Moreover, it can help build trust and confidence in a process largely governed by intermediary bodies. It can directly connect an advertiser and a consumer in a way that both parties have an optimum experience. Moreover, a lot of blockchain-based projects for digital marketing have already started pondering and developing solutions. In the near future, we will be able to see such projects with their practical applications in this field.