Work in Blockchain: How Can Digital Marketers Benefit from Blockchain

Blockchain is the modern-day equivalent of what algebra would’ve been in the medieval era. Some don’t understand it, some want in on it, and others think it is a big scam.

As the people from Middle Ages evolved to the Renaissance era, we are seeing blockchain gaining mainstream acceptance.

Think what Tik Tok is to Youtubers (tsk, we might’ve touched a nerve here).

Moving on!

The internet we use today is Web2. Blockchain takes things to the next level (read: Web3). The technology is a peer-to-peer network that stores data on digital ledgers across a network of computers. The data once added to the chain cannot be tampered with (any attempt to do so is evident).

How Does Blockchain Work

Interaction between two users on a blockchain is called a transaction. The technology is community-built by giving editing rights to people with access.

Consider Google Docs or other cloud applications where editor access is not limited to one person. Multiple users can enter the network and make edits without the network crashing.

Yet, the cloud is controlled by third parties so, whenever someone needs authorization it is done so through them.

However, on the blockchain, users have ownership. Whenever access is required to some other user, it is given through a private cryptographic key.

New data can be stored on the chain by adding a block. The transaction is broadcasted to nodes — that store the history of the transaction — on the network. The majority of the nodes existing on the blockchain must be in consensus to validate the transaction. With autonomous systems in place, blockchain is faster and more secure.

Now, what does it have to do with digital marketing?

Well….if people can put virtual kitties on a blockchain, why leave digital marketing behind?

Jokes apart, blockchain is expected to disrupt several industries for the better. Digital marketing on blockchain looks remarkably different than web 2.0.

It is an opportunity for marketers to personalize product experience for customers. Additionally, performance measurement and execution through a smart contract can make the process efficient for marketers.

Let’s look at how the two relate, the impact of blockchain on digital marketing, and the benefits for digital marketers working on blockchain.

How Do Blockchain and Digital Marketing Relate — Impact

Currently, most use cases are in the finance and cryptocurrency space. The technology also applies to several other sectors such as supply chain, healthcare, and retail.

Digital marketing has the potential to evolve through blockchain with faster and more transparent processes, informed decisions, and strong customer relationships.

Here is how:

Transparency and Trust

The nature of transactions on blockchain gives way to transparency and authenticity. Expanding on our Google Docs example, on a blockchain, every user can see the when, who, and where of a contribution. Customers today prefer making informed decisions while purchasing commodities.

A fashion brand on a blockchain can help customers find out where the products were made, how were the materials sourced, the material used, and whether the company uses ethical practices for every stage of production.

Data Privacy and Control with Customers

Up until now, marketers have used data provided by users such as email addresses and phone numbers for targeted advertisement. It helps customers to an extent as it becomes convenient to find what you are looking for online. However, for others it is invasive. Additionally, some companies are also accused of selling this data to advertisers.

With blockchain, the ultimate control of the data remains with the customers. Customers who choose to share data get rewarded for it. Blockchain gives customers value for their data.

A blockchain-run browser Brave allows users to opt-in to view ads. Those who do, get BAT tokens as rewards.

Giving customers the power may not be good news for marketers but a big step toward the digital rights protection of customers.

Ownership

Whatever you put on the internet will remain yours. Creators of innovations, content, or art remain the owner and are entitled to royalties unless they choose to sell it.

As there is no third party involved, creators gain full profits instead of sharing a percentage. The music industry and NFT space are already exploring this aspect.

Ad Regulation

Marketing today uses targeted ads, yet customers who do not fit the target demographics often get bombarded with ads. Marketers can upload advertisements on a blockchain which will advertise to customers of the platform only.

Ad opt-ins by customers will improve this aspect of marketing benefiting both customers and marketers. Customers are free from unwanted ads while surfing online.

As a marketer, you can market to users who are interested in the product and improve the chances of converting leads into paying customers. You can directly advertise what your product is to a customer without a boost or involvement of a strong middleman like Google or Facebook.

Why is Working in Blockchain the Right Move for Digital Marketers?

Performance Measurement

Measuring the success of a campaign and individual contribution is a pain. Several intermediates such as affiliates and ad networks are involved. Lines get blurry around the ownership of that data as well.

When blockchain is used for ads, marketers can access data on it for analysis and performance metrics. The contribution of every party will be transparent.

Low Advertisement Cost

Right now, for advertisement, there are usually four parties involved. Consumer, advertiser, creator, and hosting platform (YouTube, Facebook, Instagram, etc.).

Blockchain removes hosting platforms from the mix, so, marketers can lower costs and reach their ideal customers at the same time.

Keywords

With the removal of middlemen, search marketing will be impacted. Google is a key player in the SEO of digital marketing strategies in the current marketing infrastructure. As Google is constantly working on its algorithms and marketers must keep up with changing trends. Additionally, keyword tracking can also be challenging due to the variety of devices used.

Using blockchain removes the platform from the middle. As data is stored on the blockchain, it will be easier to track keywords used regardless of the variation of devices used for search.

Minimize Ad Fraud

Companies often end up paying more to the advertiser as some of the statistics for clicks are not actual customers but bots. With blockchain, companies can easily identify if the clicks are done by real users or bots.

Marketers using blockchain can minimize the involvement of bots in the advertising process, reach target customers and increase ROI.

Smart contracts

Marketers can use smart contracts for license purchases for content such as images. The smart contract will validate and release payment to the content creator. Blockchain can save you legal trouble due to copyright infringement.

Say Hello to Building Better Buyer Journeys

Blockchain is changing the way digital marketing is done today. Blockchain is an opportunity for companies to build better relationships with customers through marketing by committing to transparency and offering more control to customers.

It is an exciting time to be a marketer in the blockchain space. Blockchain can be a game-changer for how marketers deploy, consume, and measure marketing campaigns. A few like IBM are riding the wave, but adoption is gaining momentum.

As the technology is still in its infancy, marketers will need to test different strategies to understand what works best.

However, it is not unusual for marketers as trends, content formats, platforms, and distribution channels are ever-changing. Remember clubhouse?

Be part of the early birds, build strategies and test them out for others to follow.