Blockchain can bring about significant ramifications for the advertising and marketing industry. According to a major survey, however, only 8% of businesses consider the use of blockchain in marketing to be highly or extremely crucial.
Blockchain technology is poorly understood and surrounded by a great deal of buzz. This combination provides a natural entry barrier and has likely prompted marketers to adopt a “wait and see” stance. There are numerous reasons, however, to invest the effort necessary to comprehend the technology and investigate specific marketing use cases for your organization. Similar to digital platforms, social media and banking, blockchain may reward early adopters who are committed to innovative approaches.
The impact of blockchain technology on the consumer-brand relationship is tremendous. The decentralized and encrypted data record can assist marketers in addressing privacy concerns, enhancing security, and increasing customer transparency. The blockchain can eliminate click fraud in advertising, facilitate direct partnerships with publishers, and increase marketing ROI.
Marketing and Blockchain – Is it Possible?
Due to a lack of transparency, marketers spend billions annually to combat fraud, enhance brand safety, and protect consumer privacy.
According to a prominent article on the global advertisement scenario, 71 percent of marketers in 16 of the largest worldwide markets concur that evaluating the efficacy of digital media investment has become more challenging over time.
Having accounted for 45 percent of ad costs, video ad spends were targeted by 64 percent of all ad frauds. Cyberattacks and bots caused over $10 billion in losses to businesses.
Blockchain is a revolutionary technology in the marketing sector that not only makes it faster, easier & more convenient for marketers to evaluate digital media expenditures, but also prevents fraud and cyberattacks. It has various marketing use cases that include improved privacy of data, better loyalty programs, enhanced content management as well as seamless payments and better fraud prevention.
Some Exciting Applications of Blockchain in Marketing
Prevention of Fraud
The immutability and transparency of blockchain enable marketers to monitor fraudulent actions in their advertising campaigns by spotting bots that are installed to artificially increase views and clicks. This enables them to take preventative actions against such acts, thereby increasing security and decreasing marketing expenditures.
Digital payments are the most obvious application of blockchain technology. Blockchain’s smart contracts and currencies (tokens) make digital payments between advertisers, publishers, and customers simple, transparent, and automated. These not only enable instantaneous transactions but also eliminate the need for intermediaries, so cutting costs and enhancing credibility.
Improved Performance Management
Blockchain enhances the process of targeting customers for digital marketing campaigns and not only makes it simple for marketers to measure the efficacy of their various marketing efforts (such as digital marketing and email marketing), but it also helps prevent fraud, hence saving money.
Better Content Marketing
In the digital age, the ownership of content (pictures, films, etc.) has grown rather complicated. With blockchain-enabled content platforms, marketers can simply track their content and have greater quality control and copyright protection. Blockchain enables the digital documentation of ledgers, which assists marketers and content creators in retaining ownership and control over their content.
Privacy of Data
In the present digital advertising market, consumer data privacy is a major concern. The fear of data leaks prevents consumers from providing information. With its anonymity and immutability, blockchain facilitates the establishment of trust. Without the necessity for an intermediary, consumers are able to share and sell their data directly to organizations via blockchain. In contrast, organizations will not need to rely on a third party for data.
Enhanced Loyalty Programs
Blockchain has the capacity to revolutionize traditional loyalty programs. Incorporating the entire loyalty framework with tokens can not only bring it onto a single platform and make it easier for marketers to engage and interact with their customers, but it can also provide visibility over the transaction history between an organization and its customers, thereby enhancing business efficiency. This boosts the transparency and ease of monitoring of reward programs, hence enhancing the entire consumer experience.
Facilitates Credibility & Trust
While AI and big data have given brands and marketers access to and analysis of consumer data, blockchain has the ability to shift the balance of power to the consumer. The technology could introduce a new dynamic in which the exchange of value for data collection is essential.
Blockchain enables the secure verification and exchange of data between many parties. For brands to engage in personalization, value exchange will be required to collect previous consumer data.
Blockchain has the potential to revolutionize the marketing sector. Its use will help enterprises reshape their relationships with their clients and consumers by eliminating intermediaries, increasing consumer trust, enhancing transparency with auditing capabilities, and providing accountability. The new dynamic can help marketers overcome obstacles and provide consumers with greater value.