In a world that has become increasingly digital, it’s no surprise to see new technologies popping up all the time. One of the most innovative technologies that have shaped many industries is blockchain, which, as the name suggests, is a digital chain of blocks based on decentralization, meaning that no entity runs it, guaranteeing more robust security as no middlemen are involved in the process. Blockchain is known in relation to cryptocurrencies such as Ethereum, as it is the perfect place to enable the creation and housing of digital assets.
For those looking to trade digital assets securely, using a reliable cryptocurrency exchange platform can facilitate seamless transactions and provide robust security features.
According to binance, Ethereum is the 2nd largest crypto token by market capitalization, so you may have heard of it by now, and thus, you may be familiar with the blockchain concept as well. However, the application of blockchain goes beyond the industry of cryptocurrencies, and this fascinating technology has also permeated digital marketing in such a way that the two have now become inseparable forces that can fuel tremendous growth for marketers.
Understanding blockchain marketing and its pros and cons
Blockchain was once known exclusively for trading cryptocurrency, but this has changed recently, with the applications of this technology expanding massively in recent years. Marketing is one area where blockchain provides excellent value, enabling brands to create stronger relationships with their customers, and design more targeted ads without sharing data unnecessarily with so many companies.
Adopting blockchain in the marketing industry comes with many advantages, such as preventing fraud, and ensuring that the data won’t be stolen or sold by eliminating the need for a middleman. Moreover, it strengthens content monetization, and provides a level of trustworthiness that is hard to find. But you know what they say:” Every rose has its thorn,” which also applies to the blockchain, as the technology isn’t without downsides. Blockchain is quite expensive and requires significant technology, and despite its decentralized nature, there are still instances when it’s possible to control it, such as when an entity owns most of the nodes. Do the pros outweigh the cons? That’s something that only time will tell, but without a doubt, blockchain has a strong impact on digital marketing.
Exploring the role of blockchain technology in digital marketing
After discussing the pros and cons of the blockchain, it’s time to move on to what interests marketers:: how blockchain can impact the digital marketing industry. This fascinating technology has the potential to transform the sector, opening the door to incredible opportunities, which will take a look at below.
Compensating users for viewing ads
Right now, it’s impossible to be on social media without being bombarded with an ad on every platform. Constant pushes for purchases are everywhere, but blockchain is here to change the advertising experience by making it a lot more direct. Essentially, companies could use the budget allocated to create ads to compensate users when they click on an ad. In other words, with blockchain, you could provide social media users a chance to be rewarded with digital currency when they view ads. This strategy could be a game-changer for ad fatigue, a phenomenon that makes your ads less effective and ultimately hurts your business’s bottom line. Instead of having ads appear whenever users scroll down a page, they would be asked to view ads, helping reverse the effects of ad fatigue and maximize your marketing strategy’s success.
Ensuring the security of the data
Technology may seem to be secure today, but the truth is that cyber threats are always advancing, and in this context, it’s not surprising that many companies face data breaches and lose substantial amounts of money. But that’s not all – when you give your data to a particular company, you don’t really have a guarantee that they won’t sell it to another company to improve their profits. And often, that’s precisely what they do, and you find yourself subscribed to twelve brand-new business newsletters without knowing. The good news? Blockchain can give you peace of mind knowing that your data won’t get out because it keeps transactions anonymous.
Enhancing the reliability and transparency of marketing
While businesses may say that their products are 100% organic, this doesn’t mean customers will necessarily believe them right away. In fact, they will likely have doubts when seeing a marketing campaign, especially when they’ve become increasingly conscious about the planet and are holding brands accountable for their practices. But what if you are truly ethical? Is there a way to prove to customers that what you’re saying is true? Luckily, yes – blockchain makes it possible, enabling you to be more transparent and gain customer trust by proving your supply chain process and showing customers where your products come from, how they are made, and what kind of materials you use. Such information will give you a competitive edge, so it makes sense to implement blockchain in your business and take advantage of its transparency feature. Online digital marketing courses can also help businesses effectively communicate these ethical practices to consumers.
Gathering more accurate leads
Blockchain doesn’t just benefit consumers, but also businesses. While currently, brands are collecting customer data through cookies to inform email funnels and retargeting campaigns, this method isn’t necessarily effective because it doesn’t guarantee the accuracy of the data. This means that businesses are wasting money in the process, because they don’t see the results they expect. With blockchain, however, it’s possible to address this issue and get more accurate leads, as the technology will ensure you receive the exact data from customers. How does this happen? Well, we’ve already mentioned that the blockchain is a secure technology that ensures that customer data will remain private, enabling customers to hand over their data themselves and possibly be incentivized to do it through tokens, discounts, or another type of compensation. As a result, the lead data that companies receive would be more accurate, thus ensuring their marketing efforts are successful.
The bottom line
Anytime a technology emerges, naturally, there will be questions about its viability, but as you can probably tell from what we discussed in the blog, blockchain provides incredible advantages, especially in digital marketing, so it can be a wise move to implement it in your strategy.