Blockchain Technology Is Disrupting Marketing — Here’s How
Blockchain is undoubtedly a new technology but it has already impacted the world in more ways than one. The technology has largely found its fame through cryptocurrencies. Yet, it has already been implemented in a handful of industries, proving to be a groundbreaking solution.
From supply chain to the public health system, blockchain technology has the power to enhance transparency, shed light on complex paper-heavy processes and ultimately increase the speed and efficiency of business operations as a whole.
Regardless of the industry, blockchain technology is also stepping into the world of marketing and advertising. That isn’t a surprise, of course. In the era of differentiations, marketers need to work harder than ever to guarantee their brands stand out from the “crowd”. And becoming early adopters of blockchain is certainly one way to do it.
Critics of the new technology have called it an over-glorified ledger. Yet, blockchain is here to stay and its immutability, security, accessibility, and transparency make it a revolutionary technology that can contribute significantly to various sectors, including marketing.
Marketing executives no longer need “focus groups” to define whether a product will stick on a target audience. Internet has enabled marketers to create powerful flows of consumer data that helps to optimize products from its very conception. However, the way companies handle personal data still raises many questions from governments and consumers.
3 Ways Blockchain Will Impact Marketing In 2020
If blockchain marketing is expected to disrupt traditional marketing, then it has to offer new advantages and benefits that incentivize users. The current advertising model is based on consumers surrendering their data to major platforms such as Instagram and Twitter.
One thing we cannot deny is that advertising is driven by data. With blockchain in the mix, data can be more accurate, reliable, and transparent.
There are three ways that blockchain can potentially impact marketing:
Consumers Rewarded For Sharing Personal Data
Many people associate the word “democracy” with politics and governance. Maybe rightly so. However, that word also has a place in marketing. Especially when it comes to people’s ability to manage their own personal data.
Currently, it is third-party companies that are profiteering from user data, which they subsequently use for advertising. Blockchain marketing proposes a new way of doing things.
People can view ads online and receive digital tokens for their efforts. Consumers will be paid for viewing ads and giving their data to publishers.
Food Poisoning? You Will Know Where It Came From
Blockchain is known as the technology of transparency. This, apart from security and decentralization, is one of its most appealing properties.
The technology will go a long way in ensuring that people know where the products are sourced from or manufactured. People will know if the products they are buying are organic or the workers have been compensated fairly for their labor.
The use of blockchain to audit the supply chain has been trialed in several industries such as mining where the goal is to sell products free from conflicts and child labor.
Earlier this year, Walmart Canada has launched the world’s “first enterprise full production blockchain solution launched at a large scale mission-critical function”. A network that enables data sharing between 70 third-party trucking companies working for the retail giant.
According to the official press release, this network will not only assist in tracking deliveries, but also verifying transactions, and automating payments between trucking companies.
Cutting The Middlemen In Digital Advertisement
Ads are currently expensive because there are middlemen that have to be paid. By cutting them, the cost of advertising would be greatly reduced and more companies — especially startups — would be able to also create a buzz around their offers.
Also, eliminating one or more third-parties involved in ad placements would make it easier for marketing teams to track the effectiveness of their advertising campaigns.
Think about it. Search Engine Marketing is largely dominated by Google for a good reason: trust. Companies trust the Google Display Network, allowing it to show banners ads on their sites as they won’t harm the brand of the host website. Plus, it’s easier than finding advertisers on your own and handling the payments, etc.
Google is playing the role of a middleman that’s taking a piece of “the cake” for validating the advertisers, making sure they are genuine and won’t damage your brand. Blockchain can do exactly the same without the financial burden.
How Blockchain Improves Marketing?
Blockchain technology will rely on groundbreaking properties to disrupt marketing. There is no secret to the capability of the technology.
It can be safe to assume that things will get better in the future as the technology improves due to further research and more people getting involved in exploring the benefits of integrating blockchain in their business models.
Boosting efficiency
Supply chain management has been a logistical headache for several companies due to the several points of failure and inefficiency. However, thanks to blockchain, it could be a thing of the past. The technology provides transparency in supply management. It uses data to track the lifecycle of any product from the starting point to the shop or final end-user.
The ability to document all events at every point of the supply chain, on an immutable ledger, can significantly improve efficiency and even push businesses to adhere to strong business ethics and principles.
The transparency of blockchains makes it difficult for businesses to cut corners. The openness of data stored on a blockchain provides advantages for marketing teams that they can exploit to make their lives easier.
Increasing accountability and transparency
The demand for transparency in businesses has positioned blockchain technology as the vehicle of choice for many companies and organizations around the world.
Trust comes naturally with blockchain. There is no need to rely on third-parties for trust purposes. People can exchange value without the need for a middleman. This new paradigm of decentralizing information eliminates security concerns from the two transacting parties.
The technology provides a stable and transparent relationship between businesses and their customers. Blockchain verification can be used to verify the origins of products.
Even marketers can advertise new products with the full confidence that they can trace the entire journey from production to the shelves.
Eliminating barriers
The current advertising models have troubles in finding data that can be used to target consumers in a physical retail environment. While e-commerce is taking over, a large number of transactions still occur in physical shops.
Those businesses need to find a way to connect with retail consumers. Blockchain technology can provide that channel. The technology’s decentralized database can be used to create relationships between businesses and customers where issues such as product recalls, product authenticity, and others are addressed.
This will give retail businesses a complete overview of what their customers demand and how best to serve them.
Improving security
In its simplest form, a blockchain can be considered as a decentralized ledger secured by cryptography. The digital ledger provides a way for businesses to securely store and share consumer data without the risk of the data being shared with unauthorized parties.
The technology also allows consumers to determine they want to share with retailers and still experience personalized shopping.
Want to start using blockchain to your advantage?
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