Blockchain technology is most known for the explosion of Bitcoin, but it has now spread into many different sectors. One of the areas where it’s hitting the hardest is digital marketing. So it is now a perfect time to write a guide to digital marketing & blockchain.
This emerging technology has shaped the way we do business by tracking records in the same way that we see currencies like Bitcoin being shared. It’s all based on a decentralized system that is entirely transparent. Certain users in a network can view the blockchain, but they cannot make changes to records already being stored. Instead, it’s updated through transactions that are verified and then added to the block. Let’s start by looking at some of the ways that this benefits digital marketing.
It eliminates the middleman that is currently required with digital marketing. This area that exists between the user and business is currently controlled by others. For instance, Google acts as a link between customers and companies. Using blockchain technology would remove them because the blockchain itself would validate users, so there would be no need for Google to choose what ads to display on a website.
Another huge issue is that blockchain data is transparent, so it tends to build a higher level of consumer trust. For example, people can look at their favorite products to see where all ingredients come from. Or they can see where their favorite items are manufactured.
With that said, here is a full guide to digital marketing & blockchain.
Change the Way Data is Collected
All digital marketing strategies are built around data collection, so companies that are looking to take advantage of blockchain technology will need to transition their policy. Let’s look at traditional data collection. A user will visit their favorite brand online and then sign up using a secured server. These gatekeepers are then trusted to do the right thing with the data – a scenario that has become greyer as of late.
On the other hand, if a brand is using blockchain technology, there is no gatekeeper. When a user signs up, they create a transaction. That transaction is then saved onto a block where it is then verified across multiple devices before being authorized. Users keep their actual data while a blockchain is created on a ledger, using verified signatures. Think of it like a key that locks their data behind a door. Only someone who has that key can unlock the door to their data.
Digital Marketing is Decentralized
We touched on this a bit earlier, but let me dive deeper into this critical topic. Advertisers can avoid the middleman that they are currently dependent on. Let’s use a banner ad as an example here. If your website lists advertisements that are sketchy at best, then it’s not going to make your site credible. It could lose credibility for all of your digital marketing efforts. The same is true if your ads are listed on non-reputable websites.
This is why businesses use a third-party platform like Google to serve as a liaison. They monitor ads funneled through their systems and keep the above example from happening. So sites that are selling their space to advertisers will not have sketchy companies littering up their space while companies displaying their ads won’t have to worry about their content being placed on a sketchy website.
Companies that make blockchain technology part of their digital marketing foundation do not have to go through a mediator like Google since these systems are capable of verifying companies automatically.
Consumers Can Control Content
Right now, we’re on the verge of seeing a massive transition in the digital marketing world. With all of the data breaches that are happening right now, consumers are more concerned about feeling in control of their information. Blockchain technology is disrupting the entire world in a way that is unlike anything we’ve ever seen. There are services that users can use to gain full control over their digital identities. Certain countries are even forcing regulations on businesses that require them to get permission from consumers before accessing their online identity.
Some experts are even predicting that they might have to start paying users, in the form of cryptocurrencies, to look at their marketing material. That probably won’t happen. I feel like businesses will adapt their strategies to utilize blockchain more than ever so that consumers gain full control over their identity. Maybe reward consumers by providing them with a digital currency that can only be used towards purchases made from them.
Seek Alternate Digital Marketing Strategies
If you build the right blockchain systems, you will end up with a strategy that looks something like this. Ads are bought using a platform like a BAT App. In these systems, a customer can decide what type of advertisements they want to receive.
The very nature of how blockchain technology works makes it a safe environment for both businesses and customers. Plus transactions are all recorded in a public ledger so everything is transparent.
Target the Right Customers with Blockchain Technology
Traditional systems rely on several outside sources to learn about customers. They might gather their demographical data from Facebook and their salary from LinkedIn. Advanced systems like those used by Amazon will look at browsing history and purchases to target customers. Blockchain technology takes this a step further. Since transactions in a blockchain are transparent, we can discover what a certain segment of customers are doing without being dependent on another source for accuracy.
Marketers who can get ahead of the game now and start utilizing blockchain technology for their data management will be prepared for the future. Blockchain is going to disrupt a lot of industries once 2020 rolls around. Digital marketing is expected to see the biggest impact as we move forward.
Right now, we only see the cryptocurrency side of it, but it’s going to eventually work its way into all areas of the business world. Businesses right now are finding that allowing Bitcoin transactions is benefiting them. Make no mistake. Blockchain data management is going to be the next step, and eventually all businesses will need to turn to this technology to stay relevant.