Over recent years, blockchain technology has seen significant growth. Blockchain is a public, shared ledger that keeps the history of transactions between two parties in a way that can be assessed and is permanent—often used to create digital currencies like Bitcoin for other purposes.
Blockchain technology has the power to change the way companies do content marketing. It could also help content marketers create more targeted audiences by connecting directly with them without relying on third-party platforms like Google or Facebook.
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Let us explore the potential of blockchain technology for use in advertising and promotion. To begin, we will examine the definition of blockchain technology in marketing, its methods, best practices, and benefits.
Blockchain: What is it?
Blockchain is a distributed digital ledger, or database, that exists on multiple nodes or computers—the blocks store each verified transaction (exchange of data) in units. In addition to data on transactions, each block includes a date and a cryptographic hash of the previous block.
A blockchain distributes data across a network of computers rather than keeping it all in one place. Each place is called a “node,” and it holds a copy of all the information from the first block. The database is up-to-date across the network in real-time, so any changes made at one node reflect in others immediately.
The network’s users solve a mathematical equation to verify the transactions. The verified blocks get added to the growing list of confirmed blocks. A blockchain’s immutability shines through in the impossibility of tampering with a validated block.
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Why Use Blockchain in Marketing?
Let’s take a look at the three factors responsible for how blockchain is quickly getting widespread adoption to get a sense of how it will affect the marketing landscape:
1. Decentralization
In a client-server or centralized paradigm, all data is stored on a central server and accessed via the client and server. Internet money transfers, for instance, need a third party like a bank.
Centralized models are more vulnerable to risks like data leaks because of the presence of an extra intermediary. In contrast, data in a peer-to-peer network is spread out and not controlled by any one entity.
There is no central repository for the data. As was already seen, the data is stored locally on each node in the network. It’s now possible to transfer money to another person without going through any intermediaries.
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2. Unchangeability
The second is the assurance that comes from unchangeable records. After data confirmation is in a block, you cannot change it. Even if someone were to try to forge a node in the blockchain, they would only be able to do so by drastically altering the data and the hash of the blocks preceding it. The entire blockchain has been updated, rendering it unverifiable by any other node. It is difficult for a hacker to penetrate the blockchain because it would require changing data at each node.
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3. Explicitness
Every participant in the blockchain network may view all past transactions because blockchain is a decentralized digital ledger. While this may raise some questions, rest assured that even though the blockchain users have access to the transactions, users’ information remains hidden.
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Marketing with Blockchain: 8 Tactics to Try
Some of the sectors that stand to be unraveled by blockchain technology are real estate, BFSI, retail, media, healthcare, and the law. Companies including Microsoft, IBM, Intel, Oracle, & Apple have seen blockchain’s promise and have begun investing. In light of all the buzz around blockchain, let’s look at how we can use it to revolutionize marketing.
1. Influencer Marketing
To reach more people, brands are pouring resources into influencer marketing on a macro and micro scale. But influencer marketing has a poor name because of issues like false followers and engagement and a need for more transparency.
You can address issues efficiently by incorporating smart contracts into the blockchain infrastructure. Payouts will be made more accessible through smart contacts after meeting predetermined goals. The technology may be utilized as an added benefit to confirm the influencer’s effectiveness and credibility independently.
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2. Affiliate Advertising
Affiliate marketing brought in around $6.4 billion in revenue in the United States alone this year. Despite the significant financial commitment, brands still need help dealing with shady affiliates, squandering money on useless sites, and forking large commissions to affiliate programs. As a result of blockchain technology, affiliate marketing can reduce wasteful spending and become more organized.
- Reduce your transaction fees by using cryptocurrency.
- Unlike traditional affiliate networks, when using a blockchain-based product, there is no need to wait until a predetermined payout level has been met.
- Smart contracts reduce Ad fraud, and accountability is maintained. If that happens, nobody will need to utilize tracking pixels anymore.
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3. Promotions that reward repeat business
Customers sign up for loyalty programs for two reasons: they are exceptionally loyal to your company or are interested in receiving special discounts. The typical American family belongs to 29 loyalty programs but only uses 12.
Redemption of points is a significant issue for customer loyalty programs. Customers must remember their memberships in various loyalty programs and cash in their rewards before the expiration date. When brands become a burden, the situation is no longer mutually beneficial to them and their customers.
The blockchain-powered loyalty programs can eliminate the friction in the system. Since blockchain is distributed, businesses can work together to let customers use their loyalty points at any business on the network. Customers can use loyalty points whenever they like due to the instantaneous deposit. In this way, all members of the system benefit.
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4. Safeguarding Individual User’s Information
Data breaches are becoming increasingly common. Thus, data security must be a top concern for businesses. Brands are now subject to strict regulations around collecting and using customer data following the implementation of GDPR in 2018.
To that end, several companies have been exploring options to secure their customers’ personal information better. Here’s where blockchain technology comes in, as it lets people hide their identities while sharing data with marketers.
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5. User Benefits
With the users’ attention, it can succeed in today’s economy. Hundreds of companies are spending each year on digital advertising throughout the world. When you use blockchain technology, your advertising dollars will reach the people most likely familiar with the products or services.
As an illustration, the Brave blockchain-based browser gives its users control over the advertisements they see. It is possible to convert Ad views into an Ethereum-based utility token, then share them amongst content creators and readers. As a result, the advertiser effectively compensates users for their time and attention.
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6. Preventing Ad Fraud
In 2019, ad fraud will cause advertisers to lose $42 billion on a total digital advertising budget of $332.25 billion. Starts a new browser tab or window. Advertisers have lost much money over the years due to ad frauds like fake traffic, site spoofing, malware attacks, Etc.
In addition, publishers trick marketers by displaying their ads on questionable websites that generate plenty of clicks but need more conversions. By retaining the marketer, publisher, and user while cutting out the networks, blockchain can help reduce the prevalence of ad fraud. More openness will result from this.
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7. Networking Websites Based on Blockchain
Over the past decade, social networking sites have attracted billions of users. While social media has made it easier for people to stay in touch with friends or family and their favorite companies or celebrities, it has done so at the expense of their privacy. Due to the importance of advertising revenue, social media sites employ extensive tracking mechanisms. Users are now warier than ever about social media due to this information and recent data leaks.
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8. Business in the Social Network
We live in the era of social commerce, and blockchain technology will soon be the next big thing to shake up online retail. Blockchain technology has several parallel uses in electronic commerce in securing transactions, speeding them up, and protecting users’ privacy.
The Blockchain’s Four Advantages for Advertisers
Listed below are four areas where incorporating blockchain technology into your advertising strategies may benefit.
1. Costs Are Lower
Blockchain’s peer-to-peer, distributed nature means you can generate enormous savings immediately. The most important one is that you are eliminating unnecessary intermediaries. It’s common knowledge that ad networks would drain a company’s resources in exchange for fees or a percentage of the company’s profits.
Smart contracts ensure that they will only charge after meeting all of the conditions of the agreements. It ends the need for an intermediary and paves the way for companies to directly negotiate and pay publishers, freelancers, external vendors, and users. Although some infrastructure costs may be associated with blockchain, the transaction fees are extremely low.
These transactions are recorded and secured on the blockchain, with all parties having access to the terms of the agreement making the whole process much more efficient and reliable. Smart contracts provide a more secure, transparent, and cost-effective way of doing business than traditional legal agreements, ensuring that all parties have access to the terms of the agreement and that payments are sent only after meeting those terms.
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2. Narrowing in on Your Intended Viewers
The worst possible response to your marketing efforts is disheartening as a marketer. Everything about the advertisement—the language, the visual creative, the ad format, the target audience—was meticulously planned, but it failed to resonate with its intended readers.
As the advertising environment becomes more decentralized, marketers can more easily establish direct relationships with relevant publishers and reach their target demographics. Furthermore, advertisers know they’ll get the maximum return on investment (ROI) because customers are compensated for their time watching advertising.
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3. Enhanced productivity
Tasks that need extensive paperwork are typically dull and time-consuming. To illustrate, consider the handling of invoices. After sending an invoice, you must patiently await settlement. Using a third party to facilitate payment adds unnecessary time to the process. Blockchain solves this issue by reducing instantaneous financial dealings.
Keeping two sets of books is superfluous as the data is available to both parties. Blockchain technology increases speed and efficiency, eliminates the need for double-entry bookkeeping, and provides both parties with real-time access to financial information.
Additionally, blockchain technology is an incorruptible digital ledger of financial transactions, which is a program to record financial transactions and everything of value. As a result, it can provide a secure and transparent system for businesses and individuals to use.
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4. Distributed Programs
The Play Store and App Store set the standards for acceptable behavior regarding more conventional mobile applications. The same holds for any system where a single entity controls everything. Since a central body does not regulate decentralized apps, there is no “my way or the highway” solution. Several platforms, like EOS, Ethereum, Tron, NEO, Cardano, Etc., also allow you to create apps for these systems. There is no need to go via any one person to reach your intended audience.
As a result, businesses can experiment with different platforms, allowing them to customize their product and reach the most suitable customer base without the limitation of relying on one platform. Furthermore, this creates a more competitive landscape that benefits the consumer, as businesses have to work harder to create apps that truly stand out and will be worth investing in for users.
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Conclusion
Blockchain technology is still in its infancy but has already spread to many different industries and departments, including marketing. The excellent way for marketers to stay ahead of the competition is to investigate and test various solutions and applications. That way, they can learn the advantages and disadvantages of blockchain technology and determine the best ways to use it for their company efficiently and effectively.
Understanding the benefits of blockchain technology is paramount for marketers who wish to gain a competitive edge in today’s ever-evolving digital world. By understanding the core principles of blockchain technology, marketers can gain insight into how they could implement it in their campaigns and business strategies. Through data-driven research, marketers can gain an in-depth understanding of how the technology works and how they can use it to their benefit to gain the most out of it. You can take the help of content writing services like Italics to obtain insights about how the technology works and gain a competitive advantage.
