Blockchain technology; which has mostly been associated with cryptocurrency and the finance industry; could soon become the latest curve-ball to hit the world of digital marketing. Predictions from industry experts point to blockchain being a disruptive influence for the marketing industry, and it seems that artificial intelligence and analytics are set to take a backseat when it comes to game-changing technology.
Blockchain technology is based on the principle of creating a publically available digital record of transactions across many computers. This record or “block” is connected to other blocks in the chain and can’t be altered without altering the other blocks connected to it. It creates a way for transactions to take place between two parties without needing verification from a third party.
4 Ways in Which Blockchain Technology Is Changing Digital Marketing:
Access to Digital Data
Blockchain can put a stop to businesses pulling and selling their clients’ information without paying the client for the use of that information. Certain browsers are using blockchain technology to allow clients to “sell” their attention to businesses. The client can watch ads and get paid for doing so, instead of getting bombarded by online advertising they never asked for. Blockchain will certainly change the way that digital marketers collect and use consumer information, and it will give consumers power over their own data. Marketers will have to get their data directly from consumers and may, therefore, pose opportunities to win customer loyalty. If the brand or company can win the customer’s trust, they will be rewarded with consumer information.
Blockchain adds security to online interactions because each transaction in a block is stored in a decentralised manner, which makes it incredibly hard to hack individual accounts and entire databases. Various companies are creating ways to allow consumers to use their information as a key to access apps without those apps storing information on their servers. These companies aim to give consumers back the rights over their own data. Digital marketers can use this added security to their advantage by supporting consumers in their efforts to control the use of their data and by being transparent in the way they use data that they have access to. If done correctly, digital marketers can gain the trust of their audiences by embracing extra security.
With the verified chain of transactions, blockchain technology can help take the guesswork out of online transactions. Instead of hoping that manufacturers are being honest in marketing products, companies can verify conditions such as the origins of a product as well as how much workers are paid. There is no way to alter records once recorded in a block, which may give the consumer peace of mind knowing that they are really buying what is being advertised to them.
Clearer Indication of Ad Spend
Yet another benefit of the verified chain of transactions, blockchain can give a clear trail of where every cent goes in advertising transactions. This ensures that the advertiser is aware of every intermediary in the process and that inefficiencies can be removed from the process.
While many developments are still new in blockchain technology, it is clear that they will change digital marketing in many ways. And, if marketers gain an understanding of how blockchain can benefit their efforts, they will be well on their way to gaining loyalty from their audiences.