With the growth of cryptocurrency and blockchain technology that gives way to decentralisation, various industries have been prompt to notice how well it can benefit their sector. Marketing is one multi-billion-dollar industry which is also impacted by blockchain technology. Based on a report by a marketing research company named Forrester, digital marketing expenses in the United States will reach a soaring new high of $120 billion by 2021.
Digital marketing was a step ahead of traditional marketing with features like real-time feedback from the customers and multi-channel relationships with brands and consumers. Moreover, with the help of blockchain technology, every marketer can now focus on how to proliferate their business ten-fold. You can redefine your marketing career by going for digital marketing courses, and stay up-to-date with the latest blockchain development.
The following are the top four ways blockchain influences digital marketing and contributes to the marketing space.
- Increased Transparency
Privacy is a major concern for B2B businesses trying to interact with people for business. With laws like the General Data Protection Regulation (GDPR) and various national and state privacy laws already existing, it becomes more challenging for advertisers and marketers to gather data for targeting customers. Marketers can bridge this gap by using blockchain to geofence data.
Blockchain acts as a digital rights management (DRM) system, which is a smart contract present on the blockchain. It gives the individual certain privileges and rights wherein they can decide if they wish to provide their personal information or not, and where the information is stored. Users can opt for their preferred choices, and data is collected accordingly. This showcases the importance marketers give to the consumers who offer their personal information. If consumers notice that they are no longer gaining valuable inputs from making their information available to the marketer, then they will not leave it public and accessible. Thus, marketers need to stray away from traditional programmatic advertising and think creatively.
- Reduced Advertisement fraud
Online advertising is another field that is impacted by blockchain. Statistics like engagement and clicks calculated on social media may not always be accurate and could be managed by bots. A bot is a software application that runs automated tasks, and several businesses end up spending much more to sellers than actual clicks on their advertisements. These bots have cost more than $ 7 billion loss in 2016 solely. Advertising fraud is enormous, and blockchain helps address that efficiently.
With encryption and transparency, companies can use the chain and ascertain if people seeing their ads are a part of their target audience or bots who are merely wasting money. With blockchain technology, marketers can make sure they get the advertising they paid for. Marketers can combine a steady onboarding process and blockchain solutions to authenticate the person that’s clicking on an ad, reduce fraudulent clicks, and ultimately increase their return on investment (ROI).
- Renewed Customer-brand Relationships
Blockchain has the potential to track and control activities and therefore is intended to be profoundly disrupting in the marketing field and target audience better than any other technology. It allows marketers and advertisers to connect directly with the consumers. With blockchain technology, marketers can identify individuals using a public code which can be used along with a unique business identifier to track the potential prospect and their purchasing behaviour.
Marketers also can develop their brand value and perception by employing blockchain. For instance, food retailers and companies can now track the source of their stocks right from the farm to the counters of retailers. This series can be applied across different industries where goods can be verified for security and authenticity by using blockchain across the supply chain. Thus, blockchain not only assists in creating transparency in sales operations but also helps improve the consumer experience and strengthen the brand. Other alternatives that marketers could use to develop their marketing strategies with blockchain technology are by rewarding the users for viewing their content, crowdsourcing new products, and including various contests for the consumers.
- The End of Middleman
In the digital marketing world, the pioneers such as Facebook and Google connect website owners with advertisers. With blockchain technology, companies can now directly pay their targeted audience for viewing their ads and skipping the ad-buy process. Businesses who eliminate the middleman can raise their CPM (cost per thousand) from $1 to $5. Blockchains do better and can redesign any activity that demands a mediator.
For instance, Google operates the Google display network and acts as an intermediator that serves website owners and advertisers to rely on each other. With blockchain, they wouldn’t require Google’s assistance as blockchain can instantly verify that every user is authentic with 100% precision and that the website owner is only pricing the advertiser for actual clicks through to their website. In such a scenario, the advertiser and the website owner deal directly and wouldn’t necessitate an agent to negotiate their contract, which would save them both money. Therefore, blockchain could present a significant threat to Google’s display network revenue.
Digital marketing is the backbone of global e-commerce today and must rely on the most secure and advanced technique. The points mentioned above are some of the top ways through which blockchain will transform the marketing industry and help grow an individual in their digital marketing career.
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