Blockchain technology is the backbone of Bitcoin and other cryptocurrencies. Many experts believe the tech has the potential of disrupting global finance, mainly because of its decentralized nature, which offers freedom to consumers.
Interestingly, Blockchain is transforming more than just finance. It is changing almost every sector of the economy, including agriculture, insurance, health, and even digital marketing and advertising.
However, the focus of this piece is how Blockchain is becoming essential for marketing and advertising professionals in their daily activities.
Interesting things about blockchain technology
- In 2016, Blockchain start-up firms raised $290 million.
- Financial & technology companies have invested around $1.4 billion in Blockchain.
- The average investment in blockchain projects was around $1 million in 2017.
- In 2024, the global blockchain market is estimated to be valued at $20 billion.
Blockchain and Digital Marketing
So how will Blockchain affect digital marketing & advertising? Well, consumers will finally have control over their purchase data and personal information.
The technology will allow consumers to take control of the ads they see, which hopefully would give advertisers a modern and sophisticated means of providing top quality leads. Blockchain protocols could impact purchases, delivery, measurements, and the value of marketing and advertising efforts.
What this can do is that consumer data can become costly for marketers and advertisers, but it will give them new and improved returns on investment (ROI).
Let’s take a more in-depth look at how blockchain technology will transform the future of digital marketing and advertising.
1. Trustworthy Ad Purchases
Current methods of digital advertising can be complicated. Digital marketers are aware that it can be next to impossible to obtain accurate data. They often must ask themselves about how much of these clicks are real.
Bots (or people) hired simply to click on ads all day long can inflate and manipulate statistics and data, just to boost the click-through rates. As a matter of fact, more than $7 billion was lost because of bots. This made digital marketing challenging, and it proved costly to get a picture of the ad buys.
Blockchain technology can help change all this as security and transparency are top priorities with each transaction (block) created, verified, secured, and enforced on the chain.
How does this impact digital marketing? Experts from a Toronto based digital marketing agency explain that since the chain serves up improved transparency and security, digital marketers can identify target audience views quickly; thus, they can save millions annually.
AdChain, for instance, is an open protocol on the public Ethereum blockchain. It provides digital marketers with end-to-end transparency with a decentralized whitelist and audit trail. This gives them control of first-party data.
2. It Simplifies the Ad Purchase Process
Typical digital marketing activities usually involved intermediaries in the ad purchase process. Blockchain can somehow cut out the middleman altogether with ease. In fact, publishers who removed the middleman (with Blockchain or without Blockchain) can raise their cost per impression from one dollar to five dollars.
By removing the middleman, ad purchase processes become simplified, thereby enabling digital marketers to reach their target audiences directly just like what Brave Browser is doing. They can use the Basic Attention Token (BAT) to make their digital marketing and advertising more efficient and effective.
The platform lets them exchange token between publishers, advertisers, and users on the Ethereum blockchain. Digital marketers can obtain tokens based on users’ mental engagements, thus boosting ad ROI by creating improved connections with consumers.
3. Creating Consumer Profiles Directly from Customers With Ease
Blockchain technology can transform consumer profile making for digital marketers. Instead of making them through bits and pieces from different sources, they can get all the necessary needed info through Blockchain.
How is it possible? As consumer blockchain transactions will be decentralized, the typical ways of catching consumer data will now be obsolete. It may seem like bad news for digital marketers, but it isn’t.
Instead of obtaining varied information, advertisers and brands can pay consumers directly for their personal data and purchasing data. It can be potentially costly, but one must consider how much money is wasted on ads and campaigns with inaccurate data.
One of the biggest benefits behind directly paying consumers is that they are willing to provide their information in a secure manner indicating their interest in the product, service, or organization is promoted. This gives digital marketers a literal bullseye to capitalize on.
4. Blockchain is Transparent
Digital marketing and advertising round down to the confidence to buy. This is what each marketer aims for in a campaign and the reason why influencer marketing has a high ROI. Whenever consumers hear about a product/service from a trusted influencer, they do not hesitate to make a purchase.
Blockchain technology helps serve up that purchasing confidence, not just as a personal suggestion but as a ledger of history and data for a product/service. This digital ledger of Blockchain allows customers to get a transparent view of products from producer to seller.
In fact, some brands are leveraging blockchain transparency to increase their marketing in new ways. Babyghost implemented blockchain technology recently for product storytelling.
Irfan Ak is a digital marketing strategist at Branex, a web design company that offering web, marketing & app solutions. He has worked with various other brands and created value for them.