Blockchain is a disruptive technology. In 2020, the Blockchain technology market size was 3.67 billion USD. It is growing at a CAGR of 82.4% and will continue this expansion at the same rate until a CAGR of 82.4% and will continue this expansion at the same rate till 2028.
Undoubtedly, blockchain is one of the most up-and-coming technologies to have hit the marketing landscape. It is already changing the digital marketing and advertising dynamics, and organizations are considering ways of leveraging blockchain technology.
But before going into the details of why and how, let’s understand what blockchain marketing is.
Blockchain integration into the digital marketing and advertising landscape is known as blockchain marketing.
To understand blockchain marketing better, you should consider blockchain as a series of digital records where each block is interlinked and does not need a third-party verification. As blockchain technology verifies and records all transactions in one place, it offers increased data protection and transparency.
These features of blockchain technology have enabled digital marketers to access accurate leads and promise a better customer experience. Blockchain can do wonders for data transparency, which is why various industries use this technology.
In digital marketing and advertising, too, blockchain is changing every aspect. If AI and analytics have grown your business, blockchain can make it bigger.
The advantages of blockchain marketing are many. Organizations might take a little time to integrate this technology into their digital marketing initiatives. Here are a few strategies to consider:
Influencer marketing is not new. Contextual marketing targeting an accurate audience group or investing heavily in micro-influencers and celebrities has been going around for a while. However, influencer marketing brings problems: lack of transparency, fake followers and engagement, and trouble tracking ROI.king ROI.
With blockchain, the strategy of influencer marketing is going to change. This technology solves the problem of transparency by introducing intelligent contracts in the ecosystem.
Smart contracts facilitate payouts only after the successful completion of specific actions or delivery of results. Blockchain will also make verifying the legitimacy and performance of the influencer easy.
As per statistics, about 6.4 billion USD is spent each year on affiliate marketing in the US alone. The strategy of affiliate marketing using blockchain technology will be more rewarding than it has been before.
Blockchain can save the money wasted on dealing with dubious affiliates, paying commissions, and on sites that add little to no value. This becomes possible through the use of cryptocurrencies that simplify the payment process.
The affiliate network usually holds payouts until one reaches the minimum amount threshold, but with the blockchain products, such limits are not imposed on the operations. Smart contracts, on the other hand, reduce ad frauds and ensure accountability.
Customers are willing to join loyalty programs out of genuine loyalty to the brand or to get discounts. The problem with such a program arises when redeeming the points. Instead of being a win-win situation for brands and customers, customers fail to keep track, and brands end up creating a liability.
The loyalty programs strategy with blockchain will lead to a frictionless system. Blockchain is decentralized, implying that several brands can collaborate and simultaneously allow customers to redeem those points with any brands within the network.
Further, with the loyalty points present in real-time, customers can redeem on the go, making everyone in the ecosystem win.
With data breaches gaining frequency, an effective strategy would be protecting customer data. Here again, the proper use of blockchain marketing solves the issue. With the technology, users can make their data anonymous or sell the information to brands of their choice.
On-demand marketing and user rewards are in. With blockchain, marketers can make the most of their investment by showing their ads to an accurate target audience. For instance, there is a Blockchain-based browser called ‘Brave.’
It has introduced an Ethereum-based utility token that comes as a reward to the consumers and publishers depending on the views of the ads. So, on the one hand, you are spending the ad budget efficiently, and on the other, paying or rewarding the users for their attention.
Let’s look into the benefits of blockchain marketing.
There are quite a few ways in which the implementation of blockchain technology in the digital marketing scenario will be beneficial.
A primary concern of people who buy and sell online is data security. The eCommerce industry fully utilizes digital marketing but never eliminates security breach problems. Buyers and sellers, too, wonder if their identity or financial information is safe.
With blockchain, a ledger-based, decentralized technology, the security of critical data is guaranteed. With blockchain, the transactions are publicly visible but come with verification. Also, the people are anonymous. As a result, you can enjoy heightened security for all transactions.
This is yet another significant advantage of blockchain in digital marketing. Organizations want to ensure that the ads they buy and publish are on high-quality websites that target the exact audience. This, however, means paying a lump sum of fees to third parties with the reputation that website owners and companies look for. It is a trust-building process as well.
But with blockchain, companies can skip the ad network and save a lot of costs while making the most of digital advertising. You won’t need a third party because individual user verification will happen automatically with the technology. Companies placing the ads and websites publishing these in their own space can seamlessly collaborate and work together.
Marketers are ever willing to control their personal information, but confusion arises when they sign up with a company and get ads from other companies.
The integration of blockchain technology will allow consumers to charge for their contact information. They can also ensure receiving data from only the companies interested. This advantage will allow the inflow of accurate and targeted information from only high-quality consumers.
For small businesses, it is always hard to stand out, especially when there are established players in the industry. Because of their small size, many reputable companies miss out on the attention of the wary and apprehensive consumers.
Blockchain technology will allow these businesses to quickly build trust with less effort, irrespective of their size or time in the market. Utilizing the transparency of blockchain technology, you will be able to display every step of the supply chain along with where your products are coming from.
Thorough information on behalf of the organization will attract potential customers and make them willing to prefer you over others.
Blockchain technology will soon allow accepting alternate payments in the form of Bitcoin and other cryptocurrencies. These payments will be completely transparent, and retailers need not worry about credit card frauds, forged checks, and other chargeback issues.
The amount you pay on the banking fees will save a lot of additional costs when all the payments are secure.
Blockchain marketing, however beneficial and disruptive, is not without a few challenges.
The primary challenge with blockchain advertising and marketing is that there can be some control over the data. How? If a company owns over 50% of the nodes, it automatically gains an edge in controlling the data traffic.
Some marketers may also argue that blockchain marketing is not as economically profitable as expected. Implementing blockchain in digital marketing can be rather costly. The Hyperledger feature that most blockchains require calls for a significant investment.
Alongside, the consumption of energy is high with blockchain. This means that blockchains consume too much optical and mechanical energy. The miner must oversee each problem, requiring a lot of energy, and for digital marketing, this might not be a welcome idea.
However, various means and methods can overcome these problems, risks, or challenges, which automatically emerge as the digital marketing and advertising industry adopts blockchain technology.
Blockchain marketing, as a whole, is an excellent way of creating trust with the customers while protecting collective online privacy. Pragmatically and philosophically, blockchain brings forth the vision of an essentially secure and trustworthy customer digital experience.
With blockchain and cryptocurrencies creating a significant impact in the coming decade, it is for us to find out how it directs the emergence of Web 3.0.
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