Application of Blockchain Technology in Marketing

2021/06/27 02:33:15

If there is a form of technology that has penetrated the marketing ecosystem and gained traction over the past few years, it is blockchain technology. Whenever we hear the term blockchain technology, our mind instantly relates it to cryptocurrencies. However, this technology covers a wide range of applications that extend beyond that domain. The use of blockchain in marketing, for instance, has extended its reach and use case to various applications. And even with the several applications, it has today, the list of its use cases isn't even close to being complete.Several studies signify that the use of blockchain in marketing improves the efficiency of whatever aspect they handle significantly.

Completely understanding blockchain can be pretty tricky and difficult to achieve. Several engineers and computer scientists have spent the past decade trying to completely understand blockchain technology and its potential use cases.

What is Blockchain Technology?

In essence, blockchain technology is a decentralized ledger. The focus keyword here is decentralized. Multiple devices store the same copy of a database and act as nodes. Each of them exchanges blocks, which is a form of data stored in entities. Every block has its unique content consisting of timestamps, stored data, and hash codes, which fundamentally precedes the block's location.

So, the next thing to examine is: how can this technology be applied in the marketing world? This article covers some applications of blockchain in marketing.

Control Over Data

One of the most compelling facts about blockchain is that it returns the value of data back to customers. Till today, several brands and companies have enjoyed being able to exploit data from their audiences and customers. Everyone from Google, Facebook, and many other websites want your email address, physical address, phone number, or even your current location just to use their platforms. Of course, these help the customers in some ways as it helps the companies personalize or customize their marketing efforts to suit specific customer’s needs. However, it can also be invasive, implying that some of these companies make money by taking and, most times, even selling the personal information they gather from you.

Blockchain is revolutionizing the marketing industry by eliminating the ability of a company to get data from you without offering you its value back in some way. For example, a not-so-common browser, Brave Browser, is taking the first step towards transforming how users relate to online adverts. Instead of just being bombarded with online adverts, its users opt-in for viewing adverts while receiving Basic Attention token (BAT) for every ad that comes their way. This is a pretty creative way to make people view ads. In essence, it is trading a value for the viewer's attention instead of just exploiting them of their data without offering appropriate value for it.

Besides Brave, several other innovations are hitting the market in this regard. Block Stack is another exciting project that helps you protect your digital rights. In a way, personal data functions as a key for you to unlock these apps. However, the app returns it back to you as it is done using it. While this may look simple, it is revolutionary relative to the marketing industry.

If you are in the marketing industry – not as a user, but as a marketer – this notion may also be of great use. Marketers often face the challenge of distinguishing between real user data and randomly created fake bot data. In this case, every single piece of information is confirmed to come from real users. On top of that, using blockchain in marketing reduces the cost of ads themselves, as the whole ad buying process happens without any third parties.

Absolute Transparency and Authentication

Over the past decade, almost everyone would shop things from various online stores, hoping they deliver what they marketed to them. Did the item feature the specified size? Was it really home-grown or synthetic? Is the phone neatly used or a new one? Is that smartwatch really similar to the Apple watch, or is it a substandard clone? Thanks to blockchain technology, you can finally get answers to these questions and many others.

With the power of blockchain technology, companies can now confirm the exact condition and features of these items. They can verify the sizes, authenticity, condition, features, and many other requirements. This is massive, especially in an age where customers give more preference and, as such, care more and more about not just the quality of their purchases but also the integrity of the company that owns and manufactures those products.

Eliminates Those Confusing Ad-Costs

Several blockchain innovations are available today to help you clarify these confusing online advert spends. As part of these innovations, blockchain offers a transparent, verified, and trusted chain right from the ad dollar to end-users. Over the past few years, roughly $0.85 found their way to publishers for every advert $1 generated. Recently, this number has even dropped to less than $0.40. This drop is primarily because of the several intermediaries in the whole process.

Now, blockchain technology has saved tens of millions. On the other hand, this technology could also put several companies that garnered their worth on ad metric verification out of business. In essence, blockchain technology is transforming the marketing industry disruptively, and it is potentially eliminating a whole generation of platforms that existed before.

Evidently, the actual influence of blockchain technology in marketing is not limited to the new use cases that are constantly under development. It is in the way those use cases will influence the whole system that exists in the marketing ecosystem.

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