Benefits of Marketing on the Blockchain
“The blockchain is all about bringing in transparency and efficiency into the existing systems.”
Before getting into how blockchain is benefiting companies in digital marketing, we need to know what blockchain is all about. Blockchain is more than just cryptocurrencies, it is an ingenious invention, originally found for digital currency Bitcoin, since then it has been exploding its roots in digital marketing as well.
Now the question arises how?, well in this article we will be covering how blockchain is benefiting companies in digitally marketing their brand or products, also we will be looking at some exciting examples that are using blockchain.
Blockchain has always been related to digital currency bitcoin, but over the past years blockchain has been stretching its boundaries, it has been seen as an important tool to secure and process information in fast, safe and well distributed manner. Moreover due to its properties blockchain has evolved as a trust symbol and expected to have an anticipated growth of 57.8 percent by 2024.
Now coming back to our question, how companies will benefit from blockchain? or how marketers can make a decentralised space for brands and consumers using block chain?. Blockchain illustrate some specific properties that are highly relevant to most companies. We will now be looking at these properties in detail :
- Targeting the Right Audience:
Target marketing is reaching out to specifically designed audiences, it provides flexibility and potentially saves money and time on generating leads. However these provides less exposure and drive low attention. Now in order to create a balance between mass and targeted audiences marketers need to play smarter on targeting right audiences.
Traditionally the best balanced approach is one that benefits from quantitatively driven data for approaching the target audiences without leaving insights on mass audiences. But the question arises whether it is benefiting in long-term cost of advertising?. The answer is digital advertising is based on fundamentally open and decentralised system which opens space for creativity but leaves gap in ads supply chain making the ecosystem vulnerable to frauds for example email marketing, where in dozens of emails are sent and noted as spam or junk which in turn waste time and resources, now companies could go an extra mile to discover the benefits blockchain provides, for example BitBounce service provider allows sender to set a price for sending mails to inbox and the filter automatically obstruct all emails not on the whitelist and sender has to pay small cryptocurrency fee to the end user for mails to reach the inbox. This provide marketers to disrupt the loopholes and efficiently reach a balance between target and mass audiences.
- Ad Fraud Prevention
Ad frauds (also referred to as invalid traffic) has become a rising issue for marketers. Paying for fake clicks, fraudulent advertisement impressions and conversions has drastically increased, resulting to consumers turning towards ad blockers and has raised issues over privacy and information tracking. It was found that one in every five pay-per-click was fraudulent.
Now the question arises Is blockchain the right solution to tackle ad frauds? , well the answer is the level of transparency and accountability in blockchain driven advertising system provides buyers and sellers to track the placement of their ads and measure the ad impression. Digital advertising is a centralised system where in facebook and google plays a major chunk between companies, publisher and visitors, now blockchain technology could help remove the ad networks which in turn will help companies and publisher access full customer data insight without leaving a major revenue chunk for the middle players. Companies like adChain (https://metax.io/en/products/adchain_registry/) have already disrupted PPC advertising using this technique. This help marketers renting out advertising space and draw real time traffic.
Now the big question arises Are Brands Ready to Embrace the Change? . Comment in section below.
- Disrupting Influencer Marketing :
Customer in social media driven world look at the influencer before making buying decision. This model came to be known as influencer marketing, is the easiest way to reach potential customer and build a trust between them. The influencer marketing industry will be a $5-$10 Billion Dollar market in the next 5 years creating a pool for advertisers and marketers to allocate resources and moving a step ahead.
Now the question arises If influencer marketing is a step forward, can blockchain make it better? , well leveraging blockchain’s transparency and immutability it reduces the dependability of the influencer on sponsored based content as sponsored content alienate followers. Thus blockchain provides pay for content they choose this provides room for influencer to create content that followers crave. In order to choose influencers that may represent a brand, advertiser can check the metrics on blockchain platform and choose the right target audience for their brands.
- Decentralisation of E-commerce :
E-commerce generally referred to as electronic commerce is a platform where vendors sell their items to the customers. E-commerce is expected to have a growth of US$ 200 billion, much of this growth has sparked because of growing internet and smartphone penetration. E-commerce market in India is growing at 51%, highest in the world. But the E-commerce is centralised, i.e. vendors need to pay huge amount of their revenue to these platforms to sell their products to customers. E-commerce also has huge problem with the substandard products due to weak regulation and selection of vendors that affect the brand image.
Now the question arises, Can blockchain make decentralised space for startups or vendors to directly reach out to customer ?, well the answer is YES!, Blockchain has certain properties that would make a significant impact over the entire buying and selling process., such as:
- Providing decentralised system, where in retailers could sell at 0.1% of cost price, reducing the overall cost of the product which is charged at 5–10% in centralised systems.
- Secure payments, despite having large array of payment methods there are still loopholes, blockchain based decentralised platforms provide easy safe and secure payments by delivering high security transaction at a low execution fees.
- Data security, E-commerce sites carries extremely sensitive customer information ranging from contact details to card details and has huge risk of exposing to cyber crimes, blockchain provides decentralised system thus the data stored will also be decentralised making it impossible for hackers to break into the system.
Now, when we have looked at how blockchain is benefiting companies to digitally market their brands, we will be giving a small glance to how some companies have been using blockchain effectively.
- Microsoft : A tech giant has secured over 40 patent since it’s inception to make blockchain based payment gate ways and secure storage. Many of his nonprofit decentralised organisations are looking forward to improve workings within. It is also alloying businesses to deploy their own blockchain using stratis in Microsoft Azure.
- Bank of America : BofA holds more than 50 application for blockchain, it is hoping to provide an open-sourced ledgers to provide a seamless financial transactions for consumers and businesses.
- Overstock: company selling home decor, furniture and many other merchandise, this company let the users purchase all the items on their website using bitcoins.
- FedEx: A big shipping giant launched blockchain technology in February to clarify customer issues, the company desire that this technology will help record right data to solve customer queries.
Final thoughts :
The need for consumers to control their own data will increase in coming years and blockchain with its security protocols and transparency will mark as an excellent option. Moreover the hold over targeting right audiences and eradicating the loopholes in ad frauds, blockchain is evolving as a big and immutable alternative for digital marketers and sellers as well as for buyers. Blockchain holds the power to transform the internet in terms of brand with transparency and individual power to control data, it no myth nor a mere hype but with growing technology it will bring massive change in coming years.
So i leave it to you to answer :
Whether Blockchain is a Gimmick or a Game Changer?
Comment down below.