Marketing and advertising has undergone major changes in the past decade, and is now on the brink of another revolution. The use of blockchain in marketing is going mainstream as big brands like Unilever, Nestle, McDonald’s, and Virgin Media delve into it to improve the transparency in their digital marketing initiatives. Blockchain marketing agencies are deemed to solve common issues such as data insufficiency, fraud, trust issues, etc. and benefit various industries.
The number of blockchain marketing companies has grown by 15% and this disruptive trend is expected to grow further in 2021.
What is Blockchain?
In layman terms, blockchain is a decentralized database, i.e., not controlled by a single central unit but by a group of users. The data contained in the blockchain system is encrypted and cannot be deleted or modified. Any type of file or data can be easily stored in chain of blocks according to the blockchain theory. The technology finds good amount of use in many domains – the blockchain system business transactions, financial information and health records. These records are permanent and stay unchanged. Thus, blockchain is a new, transparent, and secure tool for industries such as advertising.
Blockchain in Marketing and Advertising
Blockchain has so far proven to be a panacea for all of the advertising worries. Marketers had been forever waiting for a technology that could provide solutions to the issues of transparency, efficiency, and fraud tackling. Identity-solving applications are becoming more real. Blockchain offers the following benefits to the marketing and advertising industry:
- Sharing Rewards
The distributed ledger technology is able to automate payments to any scale. This makes it possible for brands to send across micro-payments to the consumers. Thus, customers have a monetary incentive (no matter how small) for sharing data in exchange for direct money transfer.
- Optimized Value Chain for Advertising
Ad tech is one of the main focus points of the blockchain technology in the field of marketing and advertising. Digital ads are set to greatly benefit from a secure, transparent, and accountable technology in the form of blockchain. Smart contracts between agencies and brands and micro-payments that incentivize customer interactions have the potential to revolutionize marketing.
- Improved Customer Intelligence Through Verified Data
Blockchain technology is able to gather, verify, store, and automatically keep the databases updated without the need for constant human intervention. This data transforms the approach relying on customer insights. Blockchain gives priority to data-driven marketing, thus generating more and more ideas for streamlined application of theories.
- Power to the People
One of the most important things about blockchain is that it gives the value of data back to consumers. Up until now, most companies benefited from being able to pull data from their customers with or without their consent and using this data to promote products and encourage impulse buying. In some ways, this technique did help customers. However, in other ways, it is invasive and violates the right of individuals to withhold information. One of the major changes that blockchain is bringing is removing a companies’ ability to pull data from customers without reimbursing for its value. Blockchain goes a long way in protecting the digital rights of consumers.
- Targeted Content Delivery
Data can be used to link to personalized insight generation segment by using blockchain technology. Blockchain content writers suggest using this more effective way of insight generation for specific targeting.
- Serverless Architecture
Cloud hosting is reef with problems that a serverless architecture will solve easily. When dealing with thousands of transactions, blockchain technology can enable store owners to scale the process as per demand. Blockchain directly enables brands to gain from zero performance gaps and indirectly by going serverless as it will enable them to host on-demand campaigns.
- Building Trust and Fostering Transparency
Blockchain plays an important role in helping advertisers select the right publishers, quantify the results of an advertising campaign, build trust, and prevent fraud. This process not only reduces the cost of each campaign, but also helps speed up any transaction. Consumers are made aware of the entire process before they are able to see the distribution of goods.
The real impact of blockchain in digital marketing and advertising does not only lay in the new use cases that are being developed. It lies in how these use cases are going to impact the entire system and help manage the digital marketplace. At a time when digital marketing is undergoing drastic changes every year, blockchain is proving to be one of the most disruptive technologies to impact digital marketing. A number of blockchain marketing companies and start-ups are springing up all over the world with the idea of making the field more streamlined and effective. As blockchain has a broad spectrum of marketing applications, there is a huge scope for such companies.
Blockchain can manage as well as record data in a secure manner, conduct trusted transactions, increase automation and data reliability, allow the flow of data among partners, and much more. When blockchain technology is combined with AI (artificial intelligence), the rewards are even better. As the technology matures, young emerging businesses need to keep an eye out and explore these technologies so they can be incorporated in their business effectively. At the same time, traditional businesses need to align their marketing activities by keeping blockchain in mind so they don’t fall back and are able to stay abreast with the way technology in the marketing and advertising sector is becoming all pervasive.
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