What is blockchain, and how does it work?
If you've heard of blockchain before, it’s most likely because of cryptocurrency, as the financial sector was among the first to adopt and invest in blockchain development. As a result, that industry continues to dominate the market. However, most people are unaware that blockchain technology goes far beyond bitcoin or Ethereum and that it opens up a whole new era of liberation.
Blockchains are virtual databases or ledgers. They are shared among multiple computer network connections and store data in digital format. Blockchains are distinct from other databases in that the technology at their core ensures that records are kept secure.
Another distinction between a blockchain and other databases is how the data in the ledger is structured. Blockchains, as the name implies, group data into blocks; Consider them to be individual storage rooms or compartments. When a block’s capacity is reached, it is closed and linked to the previous block.
This is how a blockchain is formed; Any data added after a closed block must be stored in a new block. When that new block is finished, it is linked to the existing chain, and so on. Blockchain storage, in addition to creating a chain, also creates a chronological timeline of when data was added.
One of the most significant differences between blockchain-based databases and other databases is that all users hold blockchain-based data collectively rather than in a single centralized organization.
How is blockchain suitable for marketing?
Back in 2008, when the global financial crisis hit and trust in the traditional banking system was lost, the peer-to-peer electronic cash system popped up Bitcoin demonstrated the use of cryptographic mechanisms for financial transaction processing. Bitcoin’s cryptographic mechanisms solved the problem of double-spending while setting a whole new standard for conducting financial transactions and exchanging value in online environments.
Furthermore, the impact of blockchain in marketing would focus on how it verifies the validity of transactions. Since, all transactions are sequentially arranged in blocks with timestamps, tampering with the public transaction records on the blockchain is impossible. Blockchain marketing applications would drastically alter customer-business interactions since they combine the benefits of several technologies, most notably a distributed ledger of transactions carried out by blockchain network participants. Blockchain technology’s primary goal is asset authentication, with the potential for application in other business activities.
How will blockchain affect digital marketing?
The digital marketing industry is starting to appreciate the potential of this technology. Blockchain in marketing can help brands build more secure relationships with their customers, allowing them to create more targeted advertisements without having to share much data with so many companies.
The technology is still evolving at this stage, creating use cases for the digital marketing industry, that are being discovered almost daily. Blockchain technology and Web 3.0 applications will undoubtedly improve how digital marketers manage data.
Here are four applications of blockchain in digital marketing:
Keyword Search
What an individual views on Google is frequently unique to that person. The results that other researchers will see vary depending on their location and the device they’re using. This makes it difficult for marketers to track keyword rank to optimize search engine optimization (SEO); however, the blockchain could answer some of the guesses marketers still need to make.
The ledger could provide exact numbers for each keyword’s performance and track it over time. Data with this level of precision is helpful for more than just reports. It also serves as the foundation for genuinely data-driven campaigns.
Marketers could use this data to determine what actions they need to take to improve in areas and on devices where they are underperforming.
improved lead quality Currently
Data collection for marketing purposes takes various forms. For example, many marketers collect data from multiple sources, compile it, and then launch a campaign based on it. Unfortunately, this method is flawed, and many campaigns are based on inconsistent or incorrect data.
Because blockchain transactions are decentralized, marketers must go directly to the consumer. One such example is Brave, which has created an ad-blocking browser. While this isn’t new, it does show its users ads that it sells to businesses using Basic Attention Tokens (BAT). Users receive 70% of the token value, while Brave gets 30%.
How does Brave target advertisements? First, users provide the company with as much (or as little) personal information as they can. Then, advertisers choose audiences based on demographic data held by Brave, never knowing the identities of those who see the campaigns. This could be a future model.
Tools for tackling ad fraud
Consumers will have more control over their data thanks to blockchain technology. As a result, marketers must create safer methods of storing and accessing consumer data.
However, blockchain fraud prevention goes a step further. For example, illegal suppliers are committing click fraud in pay-per-click (PPC) advertising campaigns. Ad fraud can be eliminated by monitoring clicks and offering end-to-end transparency.
Better transparency for consumers
Any brand that wants to attract Gen Zers and millennials must be authentic. Supporting causes such as fair trade and environmental issues is also essential.
For example, a brand of meat products could use blockchain to publicize its supply chain. Someone who wants to purchase ethically sourced and halal meat might check the blockchain of a brand they’re considering using to find out where the farms that raise the cows are located and how they transform those cows into delicious kebab plates. Customers could track the entire life cycle of that brand’s meat to see when it leaves the farm and how long it was on the ship; consumers could even see the average temperature the meat was stored at on the transport ship.
Blockchain provides transparency, and because it is immutable, it can be trusted. As a result, greater efficiency and lower transaction costs could benefit brands.
The Bottom Line
When a new technology emerges, questions and concerns about its security and viability may arise. However, blockchain technology offers far more benefits than drawbacks, particularly in the marketing industry Blockchain technology can help secure digital marketing initiatives while empowering consumers to take control of their data. With blockchain technology in marketing, brands may seek plausible improvements in their ability to combat scams such as click fraud. Furthermore, brands could use blockchain technology to introduce credible value while optimizing the cost of their marketing campaigns. Learn more about the applications of blockchain technology in marketing.
Right now, the impact of blockchain on digital marketing trends is hazy.
However, keep an eye on developments in this fast-paced industry. Keep in mind that people in nature fear change because the outcomes are unknown to them.