THE IMPACT BLOCKCHAIN HAS ON MARKETING

Submitted By;
Ivan Serrano

Now that it’s drastically altered the finance and technology sectors, blockchain stands poised to revolutionize other industries as well. One of the areas in which it may have the largest effect is digital marketing. Wondering how that might affect your job? Don’t worry; we’re here to help you understand the opportunities—and challenges—that blockchain can provide for digital marketers.

First, an Overview: What is Blockchain and Why Does it Matter?

Those of you without a thorough understanding of what blockchain is can benefit from the following primer. Here’s a quick run-down of what you need to know:

Blockchain is a decentralized digital ledger. It was originally used to track transactions made with Bitcoin and other digital currencies.
Blockchain works by copying the information in the ledger whenever transaction records are updated and spreading the copies to multiple devices on an expansive network.
By doing so, Blockchain can make the copied data practically impossible to hack or alter fraudulently. Tampering with one copy could quickly be invalidated by any of the others (which are all stored randomly on different devices—hence the term decentralized).
As such, Blockchain has the potential to provide unprecedented security for digital transactions of many kinds.

**What Does Any of that Have to do with Marketing?**

Good question. Here’s the main takeaway: blockchain can also provide individual users with the ability to control their personal information and purchasing data. Without a central location for any of that information, traditional data farming methods won’t be much use to marketers. Here’s an example: have you been learning about your ideal customers through Facebook analytics? That’s going to become less and less useful in the near future, as customers increasingly use blockchain to keep their data a secret.

Click to enlarge

How Can You Make Blockchain Tech Work for You?

Here are four strategies your company can use to make blockchain work for you instead of against you:

Use it for better ad buys. It can be hard to gain accurate data from your ads. Bots and people who are paid to click on ads repeatedly can really throw off your numbers. However, blockchain’s ability to verify secure data can tell you which views are actually coming from your target audience. The result? Better insights you can use for more accurate future campaigns.
Reach your target audience directly. Those of you who are ready to embrace blockchain fully may be able to bypass the ad buying process entirely. Instead, you could set up a model where you reward consumers for engaging with your ads. Basic Attention Tokens (BAT) are a form of cryptocurrency designed expressly for this purpose. They use the Ethereum blockchain to create a network where advertisers can shell out tokens to consumers based on their level of engagement, driving up ROI while creating a more meaningful connection with each prospective buyer.
Buy consumer data direct. Since blockchain can allow users to hide their personal information, how can you gain valuable marketing analytics? Here’s one idea: just buy data directly from your consumers. Create an opt-in program where you offer rewards or direct compensation in exchange for useful personal data. It will cost more up front, but you’ll offset that by gaining data exclusively from people who are actually interested in your brand.
Increase consumer trust. Consumers need to trust the companies from which they are buying, and blockchain can make that possible like never before. Instead of a ledger for recording transaction data, why not create a digital ledger outlining your production and manufacturing process? Verifying that information and putting it in public will allow prospective buyers to see that you and your products are totally legit. As a result, they’ll be more inclined to trust your business and make purchases.

As you can see, blockchain is able to do far more than just handle cryptocurrency transactions. Learn more about this revolutionary technology now, so that you can begin to incorporate it in your business for greater success in the future.

About The Author

Ivan Serrano, a journalist and business enthusiast, enjoys sharing his knowledge within the business communities through his writing. In addition to covering social media marketing, he also likes to discuss globalization, business communications, and developing technology.