The good and bad of blockchain in marketing

Application of Blockchain in Digital Marketing: Is it Good or Bad?

We are all aware of how fast blockchain technology is marking its space in various sectors. From its first application in bitcoin to innovations like blockchain-based voting, this technology has come far. Do you know what attracts the attention of businesses and brands towards blockchain? Its exceptional benefits like top-notch security, ultimate transparency, and privacy.

However, there is a continuous battle among executives regarding blockchain and its potential value. One group considers it a future universal technology to overcome most challenges. On the other hand, others do not perceive it more than noxious digital poison.

Have you ever thought about what could be the possible reasons to evoke contradictory feelings? The answer is Bitcoin, the first cryptocurrency. The price value of Bitcoin has experienced drastic changes, from high to significantly low. It is not a surprise if we call it a volatile investment. Given this nature, many businesses and individuals are laid off by cryptocurrency.

However, the benefits of blockchain are not limited to cryptocurrency only. At present, this emerging technology is disrupting numerous sectors, like gaming, finance, agriculture, and even digital marketing.

Today, organizations looking forward to unleashing their business growth do not focus on Bitcoin and other cryptocurrencies. But they are more likely to invest in the technology behind it – blockchain.

  • What is blockchain?

It is a distributed ledger technology that keeps digital records of transitions and other processes without getting tempered by anyone. Regardless of what people believe or think, blockchain is here to remain forever by becoming a crucial part of our lives. Currently, blockchain is in the infancy or volatile stage. It can impact how most industries operate, including digital marketing.

Is blockchain good for digital marketing?

When it comes to blockchain, most people think about its uses in finance and banking. But its applications are beyond financial transactions and currency.

In recent years, we have witnessed this technology disrupting several sectors, like gaming, healthcare, and agriculture. Surprisingly, blockchain has walked past all barriers and hurdles to influence marketers promoting all types of products and services. Thus, more and more enterprises could leverage the potential of blockchain technology. We can expect a surge in demand for blockchain marketing companies in the coming future.

However, it has some limitations too. For example, blockchain can limit online frauds and scams, but not prevent them. After all, it is a technology used by a wide range of people. According to Martha Bennet of Forrester’s research, if the information is on the blockchain, it does not mean you should trust it blindly. Anyone making a false statement or issue a fraudulent prescription is still considered fraud.

Blockchain in Digital Marketing

Application of blockchain in digital marketing

  • The change in data collection

With the advent of digitalization, accessing data has become more convenient like never before. However, there are gatekeepers like web browsers and ISPs that online users have to go through before accessing data. These gatekeepers know everything we do on the internet, from what we read to the people we talk to and our purchase history.

Having said this, it comes with downsides, such as personal data breaching. In the past, a few incidents took place when the leading social media platform, Facebook, sold its users’ data to advertisers. It is one of the many events of data breaching. You would not know, but there are several cases. 

Fortunately, we have a solution for this problem that is blockchain. For example, Blockstack is a network powered by blockchain and is considered the internet of decentralized apps. Since it is built on blockchain, you can expect more privacy, which means you will have complete control over your data. And no third person can make any changes.

Due to the new decentralized internet, marketers cannot access any user data without permission, so what will be their survival strategy? In the absence of free access to a plethora of information, marketers have to depend directly on prospects and customers to collect data. Many organizations rely on blockchain marketing agencies to get their user experience customized for meeting their customers’ specific needs.

  • Elimination of digital display ads

Digital display advertising does bring positive results for marketers, but it has some flaws. For advertisers, these ads can be costly and complicated to manage. Besides this, only Facebook and Google have control over them.

For viewers, display ads are often annoying and obtrusive, which leads to battery drainage of mobile phones and wastage of bandwidth. So, what could be the possible solution for this problem? The answer is quite simple – blockchain.

The Brave blockchain browser, along with Basic Attention Token (BAT), can overcome all these challenges of traditional digital advertising. It focuses on changing the interaction of users with ads.

Both Brave and BAT are blockchain-based and aim to disrupt the monopoly on online display ads. They enable marketers, publishers, and users to add value to online advertising. The use of blockchain creates a win-win situation for everyone by compensating all.

For example, users get limited ads that suit their interests and needs. Marketers can enjoy high-performing ads with better audience targeting. And publishers can earn more revenue while having control over display ads.

The bottom line

To many, blockchain marketing and its potential might seem far from reality. But this is not the truth. While these scenarios are still under development, they are ideal blockchain use cases, which will take the business world by storm. Unlike other innovations, blockchain is not devoid of flaws. But with regular improvements, we shall overcome all challenges.

If you want to explore the potentials of blockchain marketing, get in touch with Steem Experts. With years of experience in the field and the right expertise, we have gained popularity as the best blockchain marketing and ICO marketing company.

Related: Impact of Blockchain in Marketing and Advertising in 2021