5 Ways BlockChain Can Transform Digital Marketing
The blockchain is a technological innovation that has the potential of deeply impacting the way we live and conduct business. In this article, we are discussing how blockchain can transform digital marketing. Brands of all kinds are using digital platforms to connect with customers and increase their engagement. Many people associate blockchain with cryptocurrency but the technology has numerous other applications. A Vancouver- based web design company started using smart contracts to formalize agreements with clients. This helped in receiving payments on time and eliminating possibilities of disputes. We will now discuss how blockchain can affect the field of digital marketing in days to come.
What Is Blockchain?
Before finding out how the new technology can impact digital marketing, let’s know some basic information about it. A blockchain is a list of records in which each record block is linked with others through cryptography. Each block contains the transaction data, a timestamp and a cryptographic hash of the preceding block in the chain. This makes it virtually impossible to tamper with the information contained in a blockchain. The most popular use of the technology has been in creating the virtual currency, Bitcoin. Let’s now see how blockchain can change digital marketing.
How Blockchain Can Affect Digital Marketing?
Blockchain is not going to be limited to financial implications. The technology has the potential to affect all kinds of marketing efforts. Let’s see how it can possibly impact digital marketers.
1. Restrictions On Personal Data Collection
One of the biggest concerns in recent times has been about the safety of private information. In this increasingly digital world where people are active on multiple platforms and sharing critical information, it has become even more difficult to prevent security breaches. Blockchain can help solve this issue by empowering users. A network powered by this technology will require verification from users and no private information will be stored on third-party servers. This can cause problems for marketers who will not be able to freely access user data. At present, various tools allow them to get incisive information which helps them in understanding consumer behavior and framing their strategy.
2. Decreased Role Of Display Advertising Platforms
Display advertising is an important part of any marketing initiative. They generate good results for many advertisers but they can also be a costly proposition. Moreover, the digital display advertising domain is almost entirely dominated by two big players- Google and Facebook with Amazon close on their heels. Customers also find the adverts to be irritating and intrusive. One of the biggest ways blockchain can transform digital marketing is by changing how users interact with commercials. A user can create a smart contract with an advertiser directly to receive targeted promotional material in return of a fee. People can choose the amount of information they share and brands are assured of displaying ads to an audience more likely to convert. This will decrease the dominance of advertising platforms and allow advertisers and consumers to connect directly.
3. Provide Access To Much More Accurate Data
Marketers rely on various sources to get different kinds of customer data. They might get demographic details like age and gender from a specific place while the monthly income or recent purchase history may be generated from a completely different source. This makes creating a customer profile for preparing a targeting strategy a difficult task. Blockchain will allow brands and consumers to connect directly. They will get access to accurate information from a single and most dependable source- the users themselves. Creating a winning strategy will become easy and marketers will direct their efforts only towards those people who are likely to convert into customers.
4. Increase The Efficiency Of B2B Marketing Efforts
Blockchain smart contracts can be used by marketers to improve the efficiency of their B2B marketing strategies. Marketing professionals regularly engage influencers and bloggers on various platforms to promote their brand. In many instances, the individuals promote a product or a service on their social account in return of money. However, there is no mechanism for monitoring such agreements. When both sides formalize an arrangement through a smart contract, they will be obliged to follow its terms. It is similar to the strategy employed by the web development firm in Vancouver. The client locked the fee installments with various project milestones in the smart contract. The agency received a specified amount once it achieved a milestone within the specified deadline.
5. Improve Trust Between Customers And Brands
Blockchain can help improve the trust between consumers and brands. Let’s say an online store uses the technology in its order and delivery system. The users will be able to establish the authenticity of an item and also the exact manner in which it moved before being delivered to him/her. Moreover, control over personal data access and smart contracts will only make dealings more transparent. The more customers trust a brand, the better their engagement will be.
These are just a few instances of how blockchain can transform digital marketing. Marketers must conduct an in-depth analysis of the technology to comprehensively assess its impact on their field and the manner they interact with customers.
About the author
Ankit Srivastava is a Digital Marketing Strategist by profession & Blogger by passion. He loves writing on various topics as per his interest. Apart from blogging, he is a big foodie & love clicking pictures of his favorite food items. Whenever he gets free time from all this, he goes to explore different places of India. Read more