How to use blockchain in digital marketing
How beneficial is blockchain to digital marketing? AGS gives you 10 ways on how to utilise blockchain in digital marketing
Blockchain is one of the fastest growing types of technology which is being implemented across many different industries. The fact that blockchain provides safe and secured online transactions, especially in a time were individuals are constantly being targeted by hackers, has helped accelerate the tech’s popularity.
Blockchain is essentially a digital ledger of transactions and the system records important information which is unchangeable and unhackable. The blockchain is copied and spread across a network of computers and whenever a new block is added into the blockchain, every single computer that has the information is updated to reflect the new change.
Therefore, it comes as no surprise that many industries are starting to implement blockchain technology to their practices and marketing is no different. Several digital marketing companies are implementing blockchain into their strategies but why and how?
10. Influencer marketing
Blockchain may enhance the influencer marketing strategy. Right now many brands are investing heavily in celebrities however there are a number of concerns regarding these strategies which include tracking the ROI, lack of transparency and fake engagement.
Blockchain solves these problems due to the implementation of smart contracts within their ecosystem. Through smart contracts marketing companies will be able to pay their influencers depending on whether they reach certain milestones or results. Blockchain will also be able to verify the performance of the influencer in real time.
9. Affiliate Marketing
Affiliate marketing is a million dollar industry. However, brands still face a number of issues by dealing with problematic affiliates, similarly to influencer marketing. Many marketing companies could waste money on websites that will not bring any value back to the company or affiliates will command a high commission fee.
How could Blockchain change the affiliate marketing industry?
- Cryptocurrencies simplifies payment processes
- Blockchain based products removes the payment issues
- Smart contracts ensures accountability and reduces ad fraud
- Smart contracts will take away tracking pixels
Blockchain aids advertisers to select the right influencer/affiliate/publishers, monitor the results of the ad campaigns and helps build trust due to transparency. Blockchain will help consumers be aware of the whole process before the goods are distributed. Therefore, transactions are sped up, consumers are aware of the whole procedure and brand trust is build due to blockchain’s transparency feature.
7. Ad Fraud
Many digital marketing companies lose quite a substantial amount of money when it comes to Ad fraud. There are issues regarding traffic fraud, domain spoofing and malicious advertising. Furthermore, there could be an issue were publishers could show ads on dodgy websites that could bring in traffic but render no results. Blockchain will remove the middleman, ensuring transparency.
6. Data protection
Blockchain enables individuals to be anonymous in the whole process, which includes their data. They will also be able to sell their information to brands they want to. This factor is very important nowadays, especially with the push on data protection. The introduction of GDPR introduced major guidelines for brands and any breaches of consumer data will be met with a huge fine.
5. Cost Savings / Cheaper Ads
One of the main blockchain uses is that it cuts out the middleman. Therefore, the cost of digital advertising will be severely reduced. Moreover, ad metrics will be more accurate since there is no intermediary party involved in the whole process. By having a middleman, ad tracking may be very difficult but utilising blockchain will make the information readily accessible for your marketing team, making it easier to measure the ROI of a company’s ads.
Reliability and transparency is very important when it comes to brand loyalty. Blockchain’s main feature is that it creates transparency, giving the customers information of where the product is sourced and manufactured. For example, potential customers will be able to realise whether a product has been manufactured in a sweat shop or if a farmer is paid fairly for their product. Supply chains audits are much easier to conduct which gives customers an indication whether the brand is reliable or not.
3. Verifying data for CI
Customer intelligence (CI) is the collection and analysis of detailed customer data in order to understand the best way to interact with each individual customer. Blockchain has the ability to collect, evaluate, store and automatically update databases, involving little to no human intervention. Therefore, due to its ability to automatically update, Blockchain serves as the perfect tech for data-driven marketing.
2. Creative loyalty programs
Nowadays, many industries have fierce competition with numerous brands fighting for top spot. Companies strive for brand loyalty and customer retention. To increase the chances of customer retention, brands have continuously used loyalty programs to store data of their customers. These loyalty programs not only serve as a way to increase a brand’s client base but also increases the chance of a sale. Blockchain technology has the potential to change traditional loyalty programs. Blockchain has the ability to revolutionise the design, tracking and communication to its customer base.
A blockchain-based marketing ecosystem will have a loyalty program fully integrated into the system. Therefore, anyone involved within the company such as operators, consumers, marketers, sales offices and other departments/organisations will be all integrated rather than fragmented. By being fully integrated with each other, loyalty programs partners will be able to work hand-in-hand which will ultimately improve the current members’ experience and attract new customer segments. Blockchain loyalty programs will appeal to both B2B and B2C sectors as the audit-ability of transactions is essential towards the mitigation of fraudulent behaviour.
1. Serverless architecture
This type of structure is much better than traditional cloud hosting especially when a company has to deal with a high number of transactions since it allows companies to scale according to customer demand. Blockchain will directly allow brands to gain from low performance gaps by going severless as it will allow companies to host campaigns on-demand. (Source: Blockchain-council)
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