In the past two decades, the digital era has gradually, but continuously, altered the marketing world. The internet has enhanced the way brands interact with their audience, enabling companies to reach more people whilst spending less. Nevertheless, there have been many recent incidents of data breaches which are a primary concern for many customers and brands.
Hackers continue to intrude databases, acquiring first-party data illegally. However, there is a way to minimize hacking incidents… by implementing blockchain encryption. Many communication and business aspects can be enhanced by blockchain. However, the main discussions have been about the technology’s impact on financial and banking transactions.
While financial transactions are integral for any business, blockchain can also affect marketers of any product or service. Experts believe this technology is set to change many existing industries soon.
New Innovations
Any innovation brings doubt and fear before it is fully understood and/or implemented. The blockchain is no exception to this trend. Nevertheless, there is great hope that once it is fully adopted in the marketing world, it will open up many new opportunities.
Blockchain has great potential that is yet to be utilized. For instance, it can:
- Help brands target their customers better.
- Increase an advertiser’s trust by resolving existing privacy concerns
- Eliminate the media middlemen thus reducing marketing costs
- Transform reporting and delivery segments
- Enhance advertisers’ transparency
- Increase the accountability of publishers
Loyalty Programs
It is highly likely blockchain will be applied to brands’ loyalty programs. Retailers can create unique branded currency for their customers to use in claiming rewards. The technology will allow several retailers to use the same blockchain currency for all their loyalty programs. This means rewards from one brand could be used against another brand, merely by the use of a single currency.
Blockchain can create universal exchangeability. Users can use points accumulated after buying a product to receive something else. For example, a user can utilize points accumulated from purchasing stationery to buy a widescreen TV. Currently, this is only possible when staying within one brand. With blockchain technology, customers can earn points from one retailer and then redeem them from another.
This universal exchangeability is a guaranteed, value-added feature which prompts greater customer participation and retention. Although high costs are associated with creating a loyalty program on the blockchain platform, the rewards in customer retention and revenue growth are surely worthwhile.
Smart Contracts
The use of smart contracts is already growing in the B2B environment, where blockchain is used to determine the authenticity of every contract. After successful authentication, all related transactions are linked for easier reference and archiving.
Brands and companies can exchange shares, cash or any other valuables in an entirely transparent manner. Furthermore, it creates channels for cross-promotional marketing between brands. Therefore, it is functional in various marketing strategies, such as in social media where influencers play a significant role.
Various platforms, taking NAU as an example, are creating a fair and mutually beneficial space where brands can attract a sizeable number of clients without employing the services of intermediaries. They save a lot of money on marketing and reward their partners’ users for directing new customers to their brand.
Discounts and Incentives
Many brands have encountered perennial difficulties in trying to determine how to get customers to respond to their discounts. Additionally, they have a hard time figuring out how their incentives and discounts affect their marketing campaign. If very little is on offer, few customers redeem coupons from the company’s app.
If a brand offers too much, it may eat up most of their profit margins. In cases where no one responds to their incentives, they cannot collect any consumer data. Blockchain can address these challenges since it acts as a ledger that records and time-stamps all transactions and interactions with the customers.
For example, GATCOIN aims at combining mobile targeting and blockchain to assist brands in attracting and retaining new customers. Retailers can issue “merchant tokens” to many customers via an omnichannel platform. They offer various tokens, ranging from gifts, travel tokens, discounts, and pre-paid cash tokens.
Compensating Users to View Ads
Blockchain technology is ideal for tracking everything since it records accurate histories of online trends. It is a prime, viable solution to solve the most significant challenges associated with online advertising. Blockchain usage can enable companies to determine the amount of traffic directed by their ads.
The technology can enable brands to pay clients who watch ads. Therefore, it is possible to confirm when the ads are delivered and whether they are viewed by real people. Blockchain also enables brands to optimize their advertisements’ frequency, therefore eliminating issues of over-delivering. Most of the participating clients are paid in a blockchain token or coin that is later cashed in via a loyalty program.
Authentication Services
Blockchain enhances identification confirmation services. Moreover, it creates other varieties of verification services which help brands verify things like email deliverability. The technology will also improve the marketing space since it proves that social influencers are real people and not a bot.
Content Licensing
Blockchain has created other consumer engagement applications. Companies can securely pay customers to use any of their content, including videos or photos that show their brands. This strategy is mainly applicable to social influencers, however, any other copyrightable material used in any campaign is included. All creators of related content are duly compensated for their work.
The Growth of the Fraud Verification Industry
Online advertisement is quite challenging. There is no guarantee that all media content acquired is delivered as intended. Blockchain increases transparency in the processes involved in online marketing. Through the introduction of technology to the marketing industry, the fraud verification industry is bound to thrive.
Blockchain enables brands to verify how and where their ads are run, hence eliminating bots and fraudsters from the industry.
Final Words
The above-mentioned opportunities are some of the ways in which blockchain is altering and enhancing the online marketing industry.
Since its invention, blockchain has created new opportunities which are changing almost every industry, especially the marketing sector. The potential brought about by this technology is exciting, especially in the online world.
Sources
- https://www.emarsys.com/en/resources/blog/blockchain-changing-marketing/
- https://igniteoutsourcing.com/publications/blockchain-business-applications/
- https://icowatchlist.com/blog/press-release-nau-platform-will-save-retailers-marketing-middlemen/
- https://www.singlegrain.com/blockchain/how-blockchain-is-disrupting-digital-marketing/
- https://blog.hubspot.com/marketing/blockchain-could-change-digital-marketing
- https://medium.com/coinmonks/https-medium-com-dana-m-how-does-blockchain-create-wild-new-opportunities-in-the-business-world-d6da6e2311f3
- https://www.forbes.com/sites/forbesagencycouncil/2024/02/27/10-ways-blockchain-could-change-the-marketing-industry-this-year/#6e00724448ba
