Why Digital Marketers should start looking into Blockchain?
Blockchain, a technology that has been touted as the next “internet”. The hype around the technology is very much in early stages and the implementations are so much experimental. The first and most successful implementation of the blockchain is the popular cryptocurrency called Bitcoin. There are also other implementations of cryptocurrencies claiming a specific use case. Bitcoin is the best digital gold, Ethereum is the best platform for smart contracts and Zcash is the best privacy focused cryptocurrency.
Users will place trust in code more than companies
The core benefit of the blockchain technology is that you don’t have to trust anyone or any company because blockchain allows a decentralized network to work smoothly while ensuring the maximum security for all the users meaning that no single entity can own or control networks. In the new age, users will be in control and to reach the customers companies will have to pay directly the users instead of the centralized advertisement platforms owned by companies like Facebook and Google.
Facebook earns billions through its users but pays them nothing
Today, content consumers are overwhelmed by the advertisements that are thrown at them on all levels. Facebook, a company that has one of the best advertising platform for advertisers is basically is earning money because people use their social media platform. The valuation of Facebook is determined by mostly of its active daily users which are possibly shown advertisements that earn Facebook more than a 25 billion dollars per year as of 2016.
Decentralized advertisement platforms
Once applications on Blockchain will be production-ready we will see a similar period that Internet has experienced in the 2000s where most of the companies like Google and Facebook were founded. However, this time new protocols will be launched instead of companies. Companies will have to join these protocols in order to stay relevant in this new period. Much like what happened to most of the companies during the early 2000s with the internet.
One potential use case for blockchain technology can be something called “decentralized advertisement platforms” where users can be paid directly by the advertisers once they are shown ads that are related to them. Users will be incentivized to be profiled and share their interests in encrypted way so that the advertisers will never know their true identity. This will be a great relief for companies as now they won’t have to worry about legal and compliance issues as this will be built-into the blockchain platform.
Current similar examples
Recently a basic implementation of a semi-decentralized advertisement platform is 21.co where advertisers can reach out to specific lists that are defined as a specific audience and directly pay to contact them. Examples include; “Get replies from 100+ iOS developers”. The system can be also seen as basic smart contract where people get directly paid when they send a response to originator.
Blockchain will kill traditional Email Marketing
Email marketing will be obsolete since the platform for engaging with the customers will be previously mentioned decentralized advertisement platforms. These platforms will also offer a user dashboard where users can view their opt-ins to receive specific newsletters from each company. Users will be able review their opt-ins and turn them on and off as they like. There will be no mail address for users and companies will not be able to contact anyone that has not specifically opted-in through the system. As the platform will be secured by blockchain and cryptography the privacy of the users will come by default. No more email address and personal information leaks as these information will be secured in the blockchain itself.
Benefits of using a blockchain as a Digital Marketer
- Empowering the customers to engage and get paid directly by the advertisers
- Those companies who will be moving first into marketing on a Blockchain platform will show their customers and their potential customers that they are trustworthy company and they have nothing to hide from their customers.
- More data to analyze will be available to companies through encrypted user data but they will be still able to see the big picture.
What can Digital Marketers do now to be ready for the blockchain technology?
Digital Marketing departments should spent time understanding the core benefit of the blockchain technology which is decentralized trust. Blockchain is sometimes also called “Trust Machine” as it provides trust to users by being able maintain a decentralized network or platform on a blockchain. Digital marketers should be on the look out for the new innovations with cryptography and new blockchains platforms. They should be actively sponsoring blockchain conferences and should partner with blockchain startups to ensure that they are up to speed with the latest developments. Ignoring the tidal waves of blockchain would be a huge mistake as the company’s transformation into blockchain platforms will require much more speed and dedication. Better be ready.