Blockchain has made a massive disruption over the past few years. It is considered as the most revolutionary technology since the birth of the internet. People limit the concept of blockchain to bitcoin; however, it is much more than that.
Let us have a brief overview of what blockchain is all about.
'The blockchain is an incorruptible digital ledger of economic transaction that can be programmed to record not a just financial transaction but virtually everything of value'.
The benefits of blockchain technology include:
- Lower cost due to the removal of intermediaries
- Faster process than centrally controlled ledger
- Impossible to lose data stored on a blockchain
- Full transparency of transactions
- Sender and recipient can access the data sent across the blockchain
To understand the overall impact of blockchain across the globe in various sectors, let’s have a brief overview of statistics.
- In 2017, average investment in blockchain projects were nearly $1 Million
- As much as 30% of decline was seen in bank infrastructure costs due to the blockchain
- Approximately $200 million is being invested by IBM in blockchain powered IoT
- Nearly $1.4 billion was invested by financial and technology firms in 2016
With the disruption of blockchain across myriad of business sectors, it is also revolutionizing the digital marketing and advertising. How will it affect digital marketing and advertising? The answer is, consumers will gain control over their personal information and purchase data.
According to the founder of Flackable, Brian Hart, 'Blockchain will allow consumers to take control of the ads they view and offer advertisers a modern and classy means of producing high-quality leads'.
The blockchain is the next disrupter in digital marketing and advertising without any doubt. How you can utilize the modern blockchain technology in your business is explained in this article. Let’s have a look at it.
Prevention of ad fraud
The majority of marketers are losing money and revenue due to scams. According to Forrester, as much as 56% of all display ad dollars were lost to deceitful or unnoticeable inventory. Moreover, the study found that bots cost companies more than $7 billion in damage in 2016.
However, blockchain is going to address the problem because it is transparent and encrypted, which allows companies to analyze whether the people viewing their ads are their target audience or not. It would ultimately lead to saving millions of dollars each year. In simple words, companies can ensure that they achieve what they spent for.
Cross-promotional B2B deals
Smart contracts allow you to exchange money or anything that holds value in a free and transparent manner. It removes the intermediaries involved, meaning that you and the end contractors can deal face to face without the presence of the third party. The contracts are mainly controlled by blockchain technology that simplifies, validates and fulfills the terms of the immutable contract. The contract can be swapped only by a new contract.
The contracts will help B2B cross-promotional marketing to be more efficient, particularly when millions of bloggers who cultivate personal brands through YouTube and Instagram. Digital marketing agencies with the group of bloggers can be profitable but come with a number of challenges such as no involvement of the third party regulating the terms of the agreement and the cost of each individual.
Smart Contract, on the other hand, can automatically impose restriction from all parties involved in order to make sure that the payments are made only after the fulfillment of terms. For example, a social media marketer does not post about a brand; smart contract will never release the payment to the marketer. Every contractual benchmark has to be fulfilled in order to proceed with the process to take place. In fact, blockchain facilitates an innovative service with the help of smart contract technology that assists businesses to focus on commerce and protect themselves.
One place for consumer information
Blockchain technology can prove to be helpful for digital marketers and advertisers in building consumer profiles. Without peeping into information about consumers from various sources, everything can be accessed from one place i.e. blockchain. The question arises how it would be possible since consumer blockchain transactions are not centralized, it would be impossible to extract consumer data.
The answer is that instead of getting scattered data, agencies can pay consumers for purchasing their personal data and information. It might look costly, but think of how much money is wasted on campaigns with erroneous data.
Another benefit is that by paying the consumer a hefty price, you can get the information without struggling. In this way, they will show more interest in the products, services and the company.
Transparency throughout the customer journey
Blockchain at various touchpoints can help in strictly validating and verifying each part of customers’ journey. Goods and services sold can prove to be trustworthy for the customers by ensuring the supply chain and manufacturing processes transparent. For example, Walmart used blockchain technology based on IBM Watson to develop a digital path for how their products made in China ended up on the shelves in the United States. As a result, the consumers of Walmart showed a greater trust.
In conclusion, the adoption of blockchain is still in its initial phase and more is yet to come in the future. However, one thing is for sure, blockchain technology will completely transform the business landscape especially in the areas of marketing and advertising.