As a marketer, you must have faced challenges while strategizing your marketing drives. Sometimes, you have to pay more to get your ads delivered, and sometimes its difficult to optimize target audience. However, a new technology called blockchain is here to transform everything. Digital marketing and blockchain are changing the future of doing business, and it is time you should know how.
Well, it is true. Blockchain, born eight years ago, has been associated with the only cryptocurrency by most of the people. However, there is more to blockchain than only bitcoin or ethereum trading. One of the exciting and promising fields where it can be applied is digital marketing. Experts are making quite a few predictions about the impact of blockchain technology in the area of digital marketing.
What is blockchain?
Blockchain, the brainchild of Satoshi Nakamoto, is a decentralized digital ledger technology. It allows peer-to-peer direct electronic distribution of cash. Virtually, no one can single-handedly corrupt it, as there are multiple entry points and the data is viewed and maintained by everyone in the network.
There is a lot to understand about the blockchain and its applications in several sectors. However, the potential of using blockchain in digital marketing is massive. According to the latest trends and expert’s opinions, the following are the most critical factors to understand to make digital marketing and blockchain to work together.
1. Elimination of advertising mediators
Until now, the inclusion of Google ads was one of the most critical requirements of monetizing a website. When you place a Google banner on your site, an advertiser finds your website trustworthy to contact you for placement of ads through Google display.
Other than Google ads, you have Facebook ads. It acts as the same way as Google, and showcase your ads to the people interested in your service or products.
However, you need to pay them to get your ads displayed to the potential customers. Additionally, Google or Facebook decide who could be your potential customers, based on their algorithms. So, technically you have to depend on Google or Facebook to know the effectiveness of your ads.
Google or Facebook are acting as the mediator or intermediary to connect advertisers and website owners, in exchange for revenue.
With digital marketing and blockchain, the scenario is likely to change. The blockchain provides a unique identity to each of its users, authenticated by other network users. Hence, the advertisers or the website owners would be able to locate the trusted users within the network by themselves.
So you don’t have to search for relevant users through intermediaries. Moreover, unlike Google display or Facebook ads, blockchain is free of any charge. Hence, you pay for whatever activity you perform without sharing the profit with an intermediary.
Additionally, when you identify a publisher, you know the location of the published ads. Moreover, you would know who is interacting with the ads.
2. Trust and transparency building
Blockchain depends mostly on decentralized data. Therefore, every detail of marketing efforts by any company gets recorded in the network. Thus, when a company tries to promote a new product on the blockchain, it has to share the details of every step that it took while promoting it.
The fact that companies can build trust with the customers depends on the number of details they share. As most of the people remain a bit skeptical with the process behind the products, the trust factor reduces sometimes.
The blockchain method of digital marketing can help you to increase the consumer trust. Since the data is decentralized, every detail of your collaborations and partnerships is displayed. It helps other users to evaluate the validity of your process and promotion.
Let me give you an example.
Suppose a company is trying to market its product which is based on recycled papers. Through blockchain, the company can disclose its source of procuring the raw materials, the process of recycling and finally the marketing of the finished product.
Now, the company can claim that the paper they obtained has not been obtained by cutting down of trees. The consumers will believe it as they can see the supply chain. Similarly, the organization can show transparency in disclosing the further process. As a result, people will trust the company if it tells that its product is organic.
In other words, users can evaluate your words and actions more closely. They will see who are you associating with, what are you promoting and how they will benefit the users. Hence, your consumers would be trusting you more readily through blockchain.
3. Control of own information by consumers
The marketing strategies of different companies target a massive base of consumers. Sometimes, it is a difficult task for organizations to run customized ads, so they try the one-size-fits-all strategies. Consumers feel the effect of this targeting at times and can get concerned about their identity.
Blockchain allows the consumers to have full control of their data. Thus, whenever a marketer tries to promote his/her product, taking consent becomes mandatory. Well, this is true in today’s context too, but blockchain allows users to be more selective about the data they share.
However, there is a catch. Blockchain allows users to put a value on their information and attention. It means, the users can ask the advertisers to ask for payments for checking out even ads, even if they do not buy the product/service.
Obviously, the price won’t be much per user, but it will still pinch the pockets of organizations. If the content value is not great, the companies will end up paying for users checking out the ads only without making any significant sales.
Hence, marketers would continuously face the challenge to keep their content engaging and valuable to the consumers.
4. Better targeting using digital marketing and blockchain
Targeting the right customers have always been a tough task for marketers. However, it could change massively due to the blockchain impact of digital marketing.
The blockchain makes the existence of the marketing intermediary like Google and Facebook ads irrelevant. The relationship will be thriving between the advertisers and the website owners. Moreover, the consumers become powerful with the ability to control their own data.
All of the above facts will help the marketers to create curated marketing content for the consumers. They will benefit from the consumers’ choice of receiving certain types of promotions.
For example, the marketers now have to personalize the emails in a better way to reach the consumers. Most of the times, in the current scenario, marketers are using the first name to address the consumers. They think that it is enough to personalize an email. Though it can stir some interest in the subscribers, it is not enough. However, not every marketer know why they are failing to reach to the potential target audience.
Blockchain allows you to verify all the activities of the users too. Thus, you can easily search for interesting topics for your customers. You can check out the interaction of the users with other marketers and can segment your audience better. It will help you to design email campaigns in tune with user interest and target them with offers they can’t refuse.
Overall, the marketers would be able to target the audience better, with more information on the subscribers’ interest and interaction.
5. Delivery and reporting
When organizations roll out various marketing campaigns, primarily through some third-party advertisers, tracking the metrics could be difficult at times. This is mainly because of the transparency between the publishers and the advertisers.
However, the blockchain technology makes the publishers accountable too.
Digital marketing and blockchain have the power to eliminate the discrepancy between the reports generated at both ends. The blockchain network allows both the publishers and the advertisers to be visible to each other. Thus, any distribution of the digital content can be tracked on a real-time basis. This ensures that the advertisers can charge according to only the genuine clicks generated.
Therefore, blockchain could be an effective method to optimize your ROI.
6. Data protection
As a marketer, you know you have to be compliant with certain laws. The latest among the regulatory compliance is GDPR that speaks about a few rules that you must follow. They mainly talk about the data protection of consumers, and nothing works better than blockchain network for data security.
The data in a blockchain network can be stored with encryption and on a decentralized server. No one who does not have access to the system can misuse the encrypted data. Therefore, it acts as a better option than the traditional data storage methods available now.
Additionally, consent of the consumers is an essential factor in marketing. The blockchain is the ideal platform where you need to ask for owner data before you market to them. The overall security and the transparency help you to protect data better.
7. Ad verification
As the digital marketing and blockchain grow together, the use of malicious ads by shady ad agencies would rise too. The risk of losing money over ad frauds is not new to marketers, and they try to prevent it at all cost.
The blockchain, however, allows the marketers to know the placement and the performance of the ads published. You can also carry out an advertisement audition in the blockchain network to eliminate the chances of fraud ads.
Moreover, blockchain allows you to track your ads. Therefore, you can check who liked your ads and who clicked. It reduces your dependency on the ad servers for performance evaluation of ads.
Getting ready for the future
So now, you know how digital marketing and blockchain relate to each other. The points mentioned above are just an indication of the potential of this two cutting-edge development.
They technologies have the potential to optimize your marketing funnel and grow your business. This is because, blockchain allows you to see every steps of the customers journey. It helps you to optimize your marketing campaigns in such a way that the customers feel satisfied and engaged in every stage of the funnel.
The blockchain is growing, and so is digital marketing. Thus, these are early days for anyone to comprehend the full implications of digital marketing and blockchain. However, the looking at the current scenario, experts believe that the blockchain would be making a huge impact on digital marketing.
What are your thoughts about these latest developments? Are you worried or looking forward to the challenges of digital marketing and blockchain? Let us know in the comments section?