Technological evolution has pushed disruptive technologies like blockchain and Metaverse into mainstream business. The conversations surrounding DLT have moved from whispers to roars in a decade span. Presently, firms are rushing to infuse blockchain technology into their core infrastructures with an intent to revolutionize them.
Digital marketing and advertising are among the most successful fields that have managed to transform themselves with blockchain prowess. Blockchain is one of the newest technologies to have impacted the marketing environment for all good reasons. With this in mind, firms are considering using blockchain technology as a tool to revamp the nature of digital marketing and advertising. Firms are spending in bulk to hire a blockchain developer who can design tools dedicated to supporting the advertising industry.
In this article, we will talk about blockchain marketing and blockchain’s impact on the advertising sector in 2022. Let’s start:
Blockchain Technology: A Brief Introduction
A blockchain is simply a network of computer systems that duplicates and distributes a digital ledger of transactions across the entire network. Each block on the chain comprises several transactions, and each participant’s ledger receives a copy of each new transaction that takes place on the blockchain. Distributed Ledger Technology hints at a decentralized database that is governed by several participating computers called nodes. The blockchain developer community strives to provide innovative products for crypto fans to take benefit from.
Blockchain essentially maintains a public ledger of transactions stored in interconnected digital blocks. As blockchain revolves around decentralized ecosystems, no central authority has the power to control its working. No single person or organization owns or controls a blockchain network. The participating nodes connected to the DLT verify the transactions. Smart contracts used in the Ethereum blockchain network ensure the high-end security of transactions.
One of the most exciting features of blockchain is immutability. The transactions stored on the blockchain are accessible to all the participating nodes and are not restrained to the control of a single system. This makes it difficult for intruders to organize single-point attacks on the network.
Everything about Blockchain Marketing
In simple words, blockchain marketing is a cutting-edge strategy for online advertising that employs the prowess of blockchain technology. Blockchain is a distributed database that enables safe, open, and unchangeable transactions. Due to its capacity to allow firms to monitor data migration and guarantee its accuracy, blockchain marketing has placed itself as an ideal marketing tool.
The future for digital marketing looks promising with the proliferation of digital resources and decentralized technologies. Technology has managed to leave an everlasting impact on how businesses operate. Digital marketing and advertising have been at the forefront to experience the power of blockchain technology in triggering a change. Marketing paradigms are shifting towards a more liberal, open-source, and user-centric ecosystem. This is why Blockchain Marketing is gaining much-needed popularity in the marketing and advertising hub. The concept justifies all the parameters required for setting up an efficient, advanced, and profitable marketing cluster.
What makes Blockchain Marketing Important?
In traditional digital marketing, businesses frequently depend on outside agencies to seek goods or services. These third-party organizations may or may not have the prerequisites such as time, money, and experience in their kitty. This makes it impossible for them to guarantee top-notch services to the purchaser. Due to such incompetencies, many companies lose money on these marketing initiatives.
In earlier incidents, advertisers filed lawsuits against several social media platforms for inflating video views and ad analytics, causing additional fees for the inflated and tapered data. Due to its decentralized nature, blockchain technology will stop such abuses because information corruption is impossible in a decentralized environment. To get campaign data, campaign managers won’t ever need to interact with advertising outlets, nor would they require background checks or references on advertising vendors. The validation and upfront display of all pertinent vendor information eliminates the possibility of misrepresentation and trust-building efforts.
We learn about data breaches every day that digital ad suppliers bring on. Secret cookies that we unwittingly allow are continuously watching us. According to some reports, advertising losses were projected to total $42 billion in 2020 and $100 billion by 2023. Blockchain marketing has ensured accountability for users when presenting commercials and paying for genuine human interactions on ads rather than robots.
Blockchain Marketing is emerging as a key player in the mad race for innovation and development. However, it also has the ability to alter the way users interact with their gadgets and make online purchases. With this in mind, tech experts are working on new marketing strategies. Special emphasis is being given to security and transparency requirements. The use of blockchain technology helps users to enjoy full control over their data. On the other hand, firms get ample opportunities to expand their customer base without sabotaging customers’ privacy.
Potential Use Cases for Implementing Blockchain Marketing
It sometimes becomes difficult to figure out how to learn blockchain implementation in the field of digital marketing. This is why we are presenting a list of the top 3 use cases where blockchain is revolutionizing the marketing space. Have a look:
Influencer marketing is one of the most popular trends for millennials presently. Youngsters are ushering to showcase their talent and reap the benefits of the burgeoning industry. Contextual marketing, which focuses on a specific audience segment or makes significant investments in micro-influencers and celebrities, has been on the swing for quite some time. Despite all the glitter, influencer marketing has its own share of drawbacks. The list includes a lack of a transparent working system, fake followers and intrusive engagement, and problems tracking the ROI.
Influencer marketing will transform into a better state when introduced to the perks of blockchain technology. This solution addresses the issue of transparency by integrating smart contracts and decentralized tools into the core ecosystem.
Smart contracts facilitate accuracy in payments. These digital contracts ensure payouts only when a predetermined task, agreed to by the involved parties is completed successfully. The influencer’s credibility and performance may be easily verified thanks to blockchain technology. An ethereum developer creates a smart contract for the digital marketing hub so as to avoid breach of contracts between the parties.
Lucrative Loyalty Programs
Customers sign up for loyalty programmes because of their genuine love for the brand or to attract juicy discount offers. The issue with such a programme pops up during users’ redemption of the earned loyalty points. Here, instead of being a profitable junction for firms and customers, it sometimes becomes unfavorable for either or both parties. Users fail to maintain track of the points, and firms get to bear the burden of an unforeseen liability on their part.
The use of blockchain technology for loyalty programmes will carve a robust system with a streamlined interface. Due to the decentralized nature of blockchain, several businesses can join together to grant customers the ability to use their points with any brand on the network. Additionally, users can redeem their loyalty points while on the go, thanks to the real-time availability of these points, benefiting the entire ecosystem.
Affiliate marketing has become a potent source of income for firms and individuals. Though, expenses in the sector are, unfortunately, higher as well. According to reports, affiliate marketing costs the US economy roughly 6.4 billion USD annually. Blockchain technology will make affiliate marketing more profitable than it has ever been.
Blockchain can help users to avoid wastage of money on commissions, dealing with shady affiliates, and visiting sites with little to no added value. The Infusement of cryptocurrencies into the system will streamline the payment process, making it more accessible, feasible, and safer for all.
Normally, the affiliate network withholds payouts until a user exceeds the minimum threshold; however, this is not the case with blockchain products. On the other side, smart contracts minimise the risk of ad fraud and provide a much-needed guarantee to the participants. Ethereum blockchain developer hub deploys smart contracts to ensure transparency within the system.
Perks of Using Blockchain Marketing
The various benefits of using blockchain-powered digital marketing and advertising are:
Enhanced Security Standards
Data security is one of the top concerns for those who are frequently involved in online purchases or the sale of things. The e-Commerce sector heavily depends on digital marketing, posing a threat to data security and safety. Both buyers and sellers are concerned about the security of their personal and financial data.
Blockchain’s decentralised environment ensures critical data security, as the latter uses encryption as a safety resource. The participating nodes verify the transactions on a blockchain. Each additional transaction is openly accessible to all the participants. Blockchain ensures immutability, meaning no alterations can be done to the stored data. The participants are also anonymous because blockchain strives to offer full privacy to its users.
No interference in buying ads
This is yet another important benefit of blockchain for online advertising. Businesses want to ensure that the advertisements they purchase and post are on reliable websites directed at their specific target market. However, doing so entails making a one-time payment to outside parties with the reputation that website owners and businesses value. It is also a process of developing trust.
Blockchain allows businesses to avoid the ad network and save a tonne of money while still maximising digital advertising. Individual user verification will take place automatically with the technology, so one won’t need a third party. It is possible for businesses that place the advertising and websites that publish them to easily cooperate and work together.
Customers serve quality information
Marketers like to control their personal information. However, issues arise when they register with a company and see advertisements from other organisations.
The use of blockchain technology will help users to charge for their contact data. Additionally, the technology can also guarantee that the users receive data from only those organisations in which they are interested. This characteristic will enable the intake of only precise and focused information from exclusive and trusted customers.
Image Building through Trust Building
Being distinctive is never easy for small firms, particularly with established players in the market. Many trustworthy businesses fail to capture the attention of suspicious and uneasy customers because of their small size.
Blockchain technology will help these companies establish trust more quickly and with less effort, no matter how big or how long they have been in the market. With the help of blockchain technology’s transparency, firms will be able to show every stage of the supply chain and the origin of their items. The availability of comprehensive information about the company can draw potential clients and encourage them to choose the brand over competitors. When firms gain customers’ trust, they are bound to expand their share in the market.
Multiple Payment Support
Accepting alternative payments in the form of Bitcoin and other cryptocurrencies has become possible via blockchain technology. Soon, crypto payments will become mainstream in the marketing world. Retailers won’t have to worry about credit card fraud, faked checks, or other chargeback difficulties because crypto payments will be totally transparent. Eliminating intermediaries such as banks will expand savings while ensuring full transparency and safety of funds.
This is especially important when it comes to chargebacks, which are happening more frequently as online shopping becomes commonplace. According to the latest chargeback stats, more merchants are accepting alternative payments to cut back on friendly fraud. Buy Now, Pay Later programs are incredibly popular and are now an option for 27% of merchants
Issues Related to Blockchain Marketing
Undoubtedly blockchain marketing offers a variety of benefits to the digital marketing space. Although, just like any other concept, it also has some downsides as well. A major issue that comes to light here is how a company can control data despite being in a decentralized ecosystem. For instance, a corporation immediately has the advantage in managing the data flow if it owns more than 50% of the nodes.
Additionally, some marketers claim that blockchain marketing is not as financially successful as expected. Blockchain implementation in digital marketing might be quite expensive. Most blockchains need the Hyperledger feature, which necessitates a substantial expenditure.
Along with that, blockchain mining requires high energy consumption along with expensive equipment. For digital marketing, this may not be a good option. Interestingly, these issues, dangers, or difficulties can be resolved through various techniques when the digital marketing and advertising sector implements blockchain technology.
The ecosystem of digital marketing is positively and incrementally impacted by blockchain technology. Tech giants like Google are enhancing the functionality of their solutions using decentralized resources.
The technology is playing a significant role in promoting zero tolerance for data breaches, data tampering, and fraud. Companies that integrate blockchain into their advertising platforms are already moving a step further in this direction.
In totality, blockchain marketing is a great approach to earning clients’ trust while preserving everyone’s online privacy. From a pragmatic and philosophical standpoint, blockchain presents the idea of a fundamentally safe and reliable customer digital experience. Every time a new technology enters the public eye, doubts may be raised about its practicality and security. However, blockchain technology has managed to prove its mettle. Though blockchain marketing is still in its infancy stage, it’s essential to comprehend where the sector is going so firms can take the necessary steps to infuse it into their traditional systems.
If you are planning to learn about blockchain technology, then Blockchain Council’s course programs can be your best source. The blockchain certification offered here are designed to offer in-depth knowledge. The curriculum is designed to offer subjective and practical knowledge to the participants.