In recent years, there has been a wide spread adoption of the Blockchain technology in many industries. While it is usually discussed in the light of the financial and banking sectors, there are many implications of the blockchain technology outside of traditional markets. Inasmuch as the blockchain is synonymous with finance, it can also be used in marketing. At its core, a blockchain enables transactions between two parties without the need for third-party verification. It relies on consensus from the entire community. The blockchain technology can change how data is collected and used, how marketers relate with customers and how they manage ads.
Blockchain technology has many important implications for marketing and advertising such as:
The blockchain technology could change how companies collect data. Today, marketers often try to get access to customer data by paying third-parties to share information. These have sparked various cringe worthy stories of how customers data are sold to various companies. In response, there have been nternet privacy campaigns, and even some lawsuits. Since blockchain transactions are decentralized, marketers can now collect data directly from the customer. Blockchain could allow merchants to use micropayments to motivate consumers to share personal information — directly, without going through an intermediary. Marketers can pay or incentivize consumers for their data.This way, marketers have accurate data that came right from their consumer.
The blockchain technology ultimately aims to provide more transparency for consumers. They know who has their data and how those businesses got the data. This means that companies can disclose reliable information about their business footprint. This can also prevent any fraudulent practices since the transactions are recorded publicly and can be disclosed to ensure that ads were properly sourced. Since advertising has become digital and highly automated, it has become easier to post ads by just about anyone without any requirement for trust.
The idea of smart contracts is revolutionary. Smart contracts help digital marketers provide services to clients across the globe. These contracts are “programmable agreements that execute automatically when conditions are met.” For the next step to take place, every contractual milestone has to be fulfilled. They ensure that payments are made only after the contract terms are met. The key benefit of a smart contract is that it can process transactions without third parties. The transactions can be traced and are irreversible. Through smart contracts , marketers get a guarantee that they will be paid and contractors are guaranteed of the security. These contracts, therefore, provide transparency, saving time for both the parties.
Marketers who are able to offer something of real value in exchange for a consumer actively opting in will remain on the right side of regulation and know that the information they have is truly personalized, current, and accurate. Though marketers may have to pay for incentive data collection, the information will be real and highly usable in campaigns. Consumers that give the brand their data are likely already interested in the company. This makes lead scoring and conversions in the funnel much easier because these are already prospecting ready for nurturing. So yes, it will be more effort and cost upfront, but marketers will gather far better leads using the blockchain.
The marketing industry is seemingly just beginning to adopt blockchain technology, but the possibilities and implications are endless. As demands from consumers to control their own data increases, there exists a need for solutions which are transparent and secure. The blockchain technology provides such solutions with its decentralized and immutable nature. With most of the aforementioned implications already in place, it is certain that the blockchain technology will transform marketing.
The potential blockchain offers is undoubtedly exciting. However, the technology is still new to the world at large. So large-scale adoption of this technology will surely to take some time. But then, the quirkiness of this situation shouldn’t stop marketers from early adoption of this technology given that it offers marketers advantages in the form of transparency, security, and performance. To cut to the long story, this is why early adoption of blockchain could make a very huge difference.