It is time to eliminate the marketing middleman, to put an end to fake clicks and help customers take control of the data they share.
Blockchain technology helps marketers build better customer relationships and reduces the average cost of advertising.
What role can blockchain play in marketing?
Blockchain technology transcends the world of finance and cryptocurrencies.
It is now changing the way we trade, advertise and communicate with each other, like brands, businesses or sole creatives.
At its core, blockchain is a digital ledger that keeps track of data, assets, and transactions safely distributed all around the world. It’s a type of decentralized, publicly accessible database that cannot be altered without notice. Once created, it’s immutable. Every single change and transaction is recorded and visible by everyone.
Transparency and direct communication
More than 80% of consumer brands, travel and entertainment services are advertised via mobile platforms. In the 2017 more than 70% of businesses used Facebook to push ads. This advertising method is costly and works, at best, only half of the time.
The main issue here is lack of good strategy and the inability for brands and businesses to communicate with their audience openly. Even though surveys, social media analytics and other data collection methods are used to get information about the users, many campaigns are hit and miss, and the process of obtaining relevant data is very time-consuming.
With blockchain, users can send the information they are willing to share directly with companies or advertising agencies. And the best part is that they can get paid for doing so!
Blockchain apps, being transparent, open and accessible, can trace every single click, purchase, and transaction. They even have the ability to require payment with their smart contract feature.
This feature is an integral part of the Ethereum blockchain that makes it easy for businesses and individuals to sell products by using a pre-coded system that eliminates entire steps of the standard sales process. In similar manner, users could earn money by viewing ads.
Quite a lot of users wouldn’t mind seeing relevant ads, especially if they are already loyal to a brand. Blockchain could become a part of a brand’s loyalty program. Loyalty programs are an integral part of good mobile marketing campaigns and about 64% of businesses are willing to invest more in those.
Trust is a two-way street
One of the chief characteristics – and arguably the most disruptive one – of blockchain is that it eliminates the element of “trust” by committing it to code.
With this technology, it is possible to see the entire evolution of a product, from the conception of the idea, the supply and distribution chains, to the final sale.
For digital marketers, it means that they don’t need to rely on a compelling storytelling campaign to convince audience about the quality and authenticity of a products. All they need are lines of code that display where the product originates from, how it’s made and by whom, and how it will be distributed. The story writes itself.
This is exactly what Walmart did with IBM when it used blockchain technology to give insight into the food supply chain.
This type of openness not only gives credibility, but it also makes customers and consumers appreciated and valued. Everyone can lie on the internet, or tweak the truth, but the immutable code of a blockchain ledger records everything the way it happens.
Take the power back
The transparent aspect of blockchain has the potential to stop fake ads.
Marketers are familiar with ads that have thousands of impression but very little conversions. In the case of blatant fraud, it’s bots that heightened the numbers. With blockchain that could be prevented, because everyone would have insight into the origin of every click.
Blockchain will help advertisers create a relevant audience that will feel valued and appreciated, and often rewarded by getting paid for viewing ads and disclosing personal info.
Of course, such high expectations of a new technology have to be curbed because it takes time to be fully developed and implemented. It can’t be a magical solution to every single problem but with clever programming original solutions might be devised sooner rather than later.
What blockchain certainly can do is change the world of digital marketing for the better and help improve customer experience. It can also give businesses more control and provide advertisers with better tools for making great campaigns.
