Is Blockchain the answer to current industry problems? Find out what opportunities for marketers using Blockchain technology. and what are the benefits of implementing it in Marketing Technology projects.
The technologies we use nowadays were almost unknown and misunderstood on the mass market several years ago. Today it is difficult to imagine a day without social media or smartphones. One of the technologies that are currently experiencing a great boom to match the size of their great predecessors is Blockchain technology.
The first major contact with this technology was the launch of Bitcoin. Although it was initially only identified with cryptovalut, as time passed, other industries began to take an interest in it. Among other things, marketing is one of those areas where a combination of Blockchain technology and business and advanced adaptation to existing needs can be seen. Blockchain in marketing solves some of the basic problems of the industry, such as: the presence of “intermediaries” and lack of transparency of the process.
Specifics of Blockchain technology
Many people are wondering whether it is worth investing in modern IT resources and what benefits are offered by Blockchain, which can be treated as sufficient arguments for its implementation in organizational structures.
The technology is mainly used for distributed data storage, and in comparison with other solutions it is characterized by it:
invariability – after encrypting data in blocks, it cannot be changed in any way (even by the administrator). This is the main reason why Blockchain technology is considered to be highly secure and allows for effective confirmation of the authenticity of information. These properties have made this solution a symbol of trust and security – its value is expected to increase by 58.7 percent between 2016 and 2024;
uniformity – no single person is individually responsible for the block unless he or she is a private person (a similar solution is used for example in financial institutions). Global Blockchain has developed a consensus in which each participant of the block is aware of the transactions carried out within it and is responsible;
decentralisation – there is no central node to store data in the block chain. Each block checks the validity of the previous block and thus becomes a strong network without a central point of failure. This property protects it from malicious hacker attacks.
Blockchain’s influence on marketing
The above mentioned characteristics allow for effective use of Blockchain in marketing and projects requiring such a combination.
Below are some ideas for the application of the technology
Prevention of advertising fraud
Advertising fraud is a serious problem for advertisers. Paying for fake clicks and displays is a constantly growing and extremely worrying phenomenon. Advertising fraud not only affects the campaign budget, but also distorts analytical data, which ultimately translates into their strategic decisions. The use of this technology makes it possible to display all clicks in real time and thus control this process.
Distortion of influencer marketing
Marketing has noticed some time ago that people are more likely to believe what people say about a brand than what the brand says about itself. In order to intensify the information about the brand, the cooperation with so-called influencers is undertaken. This technology allows to fight the most common problems of influencer marketing.
Using the transparency and invariability of Blockchain technology, platforms for cooperation with known network users help marketers to solve problems, such as authentication of the identity of the promoter, checking the number and “quality” of those who observe it, obtaining a guarantee of return on investment by means of intelligent contracts, where the whole payment can be kept on deposit until the desired result is achieved.
Interference with data collection and crowdsourcing
Every marketer should rely on hard data. This is the basis of the campaign work. Despite so many tools available today, marketers are still unable to achieve a full package of valuable customer information. As we know, the most accurate data can be provided by the customer himself. The question is: what will make this customer share their valuable information? The Blockchain technology, together with crowdsourcing, has allowed us to encourage customers to share their data in exchange for compensation, e.g.: in the form of a specific payment in cryptographic machines.
Decentralisation of e-commerce
Blockchain technology allows you to bypass existing platforms for selling products to which sellers give a part of their profits in exchange for using their infrastructure. An additional advantage of such a solution is the increasingly popular, built-in Bitcoin wallet that allows you to make payments and earn money in the crypto.
Impact on loyalty systems
Loyalty programs are a form of rewarding the customer for being loyal and for being brand attached. How can marketing use Blockchain to increase customer engagement with brand products? One solution is to create a loyalty card platform within this technology, where gift cards and loyalty programs can be safely issued and maintained. These cards can also be converted into digital coins/portfolios, allowing customers to exchange or merge them in a single transaction.
Engaging communities and directing advertising to the right audience
A very large group of advertisements struggle with a low percentage of reaching the target group and a low degree of their involvement in the next steps. One of the solutions to this pressing problem are Blockchain-based search engines not related to the main search channels. They work on a similar basis to google ads, but are characterized by greater data accuracy.
The Blockchain-based Search Engine (BBSE) uses consumer data and preferences to display better and more personalized search results without the need to control or collect the data provided. In addition, as mentioned above, ad recipients gain a certain amount of cryptographic data in return for viewing the advertising material, thus eliminating the current dominant relationship between the recipient and the advertiser.
Business based on Blockchain and Marketing Technology
As customer experience remains the focus of attention, marketers will seek further innovative ways to improve their strategies. The combination of Blockchain and Marketing Technology is delivering exceptional results in terms of engagement, relevance and consumer satisfaction with the content they receive.
The versatility of the technology allows for its effective use in marketing activities. However, it is worthwhile to devote sufficient time to check and possibly consult with specialists. This technology has different applications depending on the industry, so it is good to verify how Blockchain can serve your company. Perhaps it is the technology that will bring the desired market success and build a competitive advantage.