Digital marketing in the Blockchain Era (Part 1)
To understand the context where Zoidcoin comes in, let’s teleport back to a time when digital marketing did not exist.
Television rules the nation
The picture we see is TV advertising being saturated and obsolete: it is so expensive that only the biggest businesses can afford a couple of seconds of advertising in prime time. Due to the expensive nature of the exposure, the creative industry booms and ads are becoming more and more expensive to create, as businesses battle in advertising budgets.
This goes on for years due to the technical landscape of the said period. The population starts to experience ad fatigue and begins to channel hop every advertising break, maybe as a form of rebellion against being bombarded with ads, thus making it less efficient.
Without being aware we as an industry are fighting against ourselves, we are making advertising less efficient and more expensive, and it is well known that in the end the consumer always supports 100% of the advertising cost.
The technical landscape has since evolved, and digital marketing is now a reality. Larger businesses have a slow decision-making process, so this new technology benefits smaller businesses at first, thus bringing the marketing power back in the hands of the people.
We now move forward and see the first cycle of digital advertising: it starts with e-mail marketing. Almost free at that point, it becomes abused and the open rate falls dramatically due to people being spammed. It is followed by the pop-up and banner ads cycle: highly inefficient at first since cookies were in early development, people are being served random uninteresting ads.
Fortunately, banner ads are relatively cheap, so the only thing that is affected yet again is the user experience: then ad-blocks become a thing and spoil the party for the advertisers.
Small businesses start to move the budgets to ‘search marketing’ and because of their success, a whole different era begins, an era where middlemen are once again in control. Larger companies start to pour money into google ads, google ads become more expensive and inefficient for smaller businesses.
They try to fix this with SEO, yet SEO also quickly becomes very expensive, as trying to fool algorithms becomes a very difficult and expensive process. The big companies follow the trend and start to invest in SEO, digital marketing budgets look now more and more like big media budgets.
Demand generation is the last resort of small businesses, and Facebook ads work wonders for them. That is until large publications start to pour huge marketing amounts into Facebook ads, increasing biding prices tenfold.
We are all crops on the digital farm.
This is where we are now. All the aforementioned methods work together through cookies that track every move we make and serve us ads accordingly. Theoretically, advertising is more efficient this way, but there is no actual positive impact on the price of the products and services, because most of the advertising budget goes to the middlemen who know how to create efficient ads on these very complicated platforms.
We came back full circle and are now just where we started. But while with TV commercials you can leave the room until the broadcast is finished, with current digital advertising you are now inside the TV, you live in the channel and you are paying for it.
We rebelled against this system though and now, starting May 2018, users can opt out of the digital tracking through cookies. By doing this we get the worst of both worlds: companies will target us with the information they already have about us and our old desires will haunt us forever.
As time passes, the information will be less relevant and the ROI on ad-spend will decrease, resulting in an increase in the cost of the end product or service. Another cycle has ended, making room for a new one to start.
By now, it is clear that the system has deteriorated. We’re in a paradigm shift and along with other businesses, such as Basic Attention Token, Datum, and Insights Network, we aim at finding the best solution.
It’s all fun and GIFs in this introduction article, but things get more serious in the second part. So make sure you read the follow-up, where we study in depth the problems that the industry is facing, from the buyers’ perspective and the sellers’ alike.
We’ll be honest with you, this article series is basically the whitepaper in a more friendly form, so if you wanna read it all in one piece, please head to our website.