The digital marketing landscape keeps evolving every few years with the rise of new technologies. Tech innovations like artificial intelligence (AI) and data analytics are already helping digital marketers understand their target audience better and improve the performance of their campaigns.
Blockchain technology – the driving force behind modern cryptocurrency markets – is set to be the next big breakthrough in digital marketing.
So, how will blockchain affect the way companies approach digital marketing? Are there any drawbacks of deploying blockchain technology in your campaigns? What impact will blockchain-based digital marketing have on consumers?
In this blog, we’ll explore the answers to these questions and more. Let’s jump right in.
Blockchain Technology: A Closer Look
Simply put, blockchain technology uses a distributed ledger system to collect and store data in a secure way. A blockchain comprises a series of interlinked blocks or digital records that store copies of the same data.
It becomes easier to verify and authenticate transactions between two people without any third-party intermediaries. Also, it provides increased transparency to all the parties involved in a transaction.
The most common applications of blockchain are in the finance sector. Modern cryptocurrency exchanges use blockchain to let users buy and sell digital tokens on their platforms. You can even monitor cryptocurrency markets and prices on such exchanges.
Blockchain transactions are irreversible and help the involved parties maintain anonymity. Also, the replication of data in multiple systems eliminates the chances of fraud.
The Role of Blockchain in Digital Marketing
If you’re a business owner or digital marketer, you’re always looking for ways to maximize the return on investment (ROI) of your campaigns. Here’s how blockchain technology can help you achieve that:
Improved Supply Chain Visibility
Modern consumers are becoming increasingly conscious of their impact on the environment and society. Whether buying a diamond ring or silk blouse, they want to know where the product comes from and how it was made.
That has compelled businesses to make their operations more ethical and sustainable. It isn’t surprising that many leading brands are looking for ways to minimize their carbon footprint and ensure fair wages for their employees.
But how do consumers know whether a brand is making false claims about fair and sustainable practices?
That’s where blockchain steps into the picture. It helps consumers delve deeper into your supply chain to understand how your products are manufactured and shipped. Also, it lets them take a closer look at how you source raw materials.
The best part is that consumers have access to accurate and reliable information about products in the blockchain, which can’t be edited or removed by brands. That, in turn, makes it easier for them to trust brands that claim to be eco-friendly and sustainable.
So, if you’re looking for ways to boost brand trust and credibility, it’s a good idea to integrate blockchain into supply chain operations.
Optimized Ad Spend
The traditional digital advertising framework involves third-party platforms, such as ad networks, that deliver your ads to a pre-defined target audience. The involvement of a third party escalates advertising costs. Also, you have to rely on their targeting prowess to reach potential customers.
Blockchain eliminates those challenges by removing third-party platforms from the process. Instead, you can upload your ads to a blockchain platform, which, in turn, will deliver your ads to the right audience.
It gives you greater control over ad budgets. Also, it minimizes the threat of fake clicks and impressions. The best part is that many blockchain platforms even reward users with crypto tokens for watching or interacting with ads. It can be instrumental in skyrocketing the performance and ROI of your ad campaigns.
Digital marketing campaigns rely on consumer behavior data collection from various sources, including social media platforms, online surveys, search engines, websites, etc. So far, consumers don’t have the power to control who accesses and uses their data.
It makes the skeptical about sharing personal information with brands. What if there was a way to tempt consumers to share their data?
Modern blockchain-based platforms help you accomplish that by rewarding consumers with crypto in exchange for their information. It ensures that you get more targeted data from consumers who are interested in your products/brand.
Also, blockchain makes it easier to store consumers’ personal information without worrying about data breaches. That creates a win-win situation for brands and their customers.
The Way Forward
Rising cryptocurrency prices are the first thing that comes to mind when you think about blockchain. However, besides skyrocketing cryptocurrency value, blockchain technology has the potential to disrupt various industries, including digital marketing.
The use of blockchain can help digital marketers reinforce brand credibility and reputation and earn consumers’ trust. It results in better quality, targeted marketing campaigns that deliver the best ROI.