How Blockchain Can Benefit The Marketing Industry
Today, the application of blockchain technology extends beyond only recording cryptocurrency transactions. Retailers, healthcare providers, media corporations, transportation and logistics firms, and telecom firms all regularly use blockchain for a variety of purposes.
The discipline of digital marketing is now receiving the technology it requires. Blockchain supporters claim that it will reduce advertising fraud and safeguard user information. In addition, they want bloggers and news site owners to be compensated more for allowing advertisements to appear on their websites.
We will discuss four potential applications for blockchain development services in digital marketing as well as what it is, why people are interested in it, and why.
Take A Quick Look At Blockchain Technology!
A database can be used to track information via a blockchain. Two significant advantages over a conventional database, according to proponents of the technology, make it worthwhile to invest in:
Blockchain Databases are Transparent
The database is kept by numerous individuals who are not connected to one another, unlike a typical centralised database or ledger. To confirm that a particular data record is accurate, people can cross-reference it with other databases.
Blockchain Databases are Unchangeable
A ledger’s entries cannot be altered once they have been made. A fresh piece of information must be put to the ledger in order to correct any errors that may have been created. Both bits of information are recorded in the ledger and are visible on every copy.
Why is using Digital Marketing Crucial for Businesses?
What you need to understand is that your company’s strategy for advancing digital marketing doesn’t have to be a lengthy report. The best method to summarize a strategy is in two to three slides, with crystal-clear fundamentals and a reachable end result.
From there, a competent SEO consultant will enhance your website by implementing the techniques that are crucial for boosting your visibility in search results, increasing your chances of connecting with potential customers, and lowering the sum of money you need to spend on marketing to achieve the best results.
Let’s look at some statistics that demonstrate the rapid development of digital marketing over the past five years.
- According to 61% of marketers, improving their organic and SEO presence is a top priority for inbound marketing (HubSpot, State of Inbound2018).
- Businesses that appear on the first page of search results receive 92% of all customer traffic (Joal House2019).
- Google owns 92.42% of the search engine market as of April 2019. (Stat Counter, 2019).
- An average of $2 in sales results from every dollar spent by a company on AdWords (Google Economic Impact Report).
- More than 38% of consumers in Australia, New Zealand, Canada, France, Belgium, and South Africa reported that their most recent product decision was influenced by price and sales (KPMG Global Survey: The Truth about Consumers, 2017)
SEO doesn’t cost much, but because it takes time to work, it doesn’t help you rank well. Many service providers have switched to more challenging solutions as more companies compete to rank in the top five results on page one of search results.
Paid search is one of these possibilities. The speed and breadth of paid search are really its strongest points.
You can rank #1 for numerous targeted search terms in a single day with a pay-per-click (PPC) campaign. The price of the phrases, however, might range from a few pennies to tens of thousands of dollars. A full-time organization should often be hired to manage a PPC campaign for it to succeed.
As more people employ pay-per-click (PPC) ads, the door opens to the extremely high risks that come with them, which also means that they can become quite expensive. As more and more customer records get into potentially hazardous hands, data breaches are increasing in size and frequency. The firms in charge of these records don’t seem confident in their capacity to protect first-party data, which is their most important asset, from hackers who continuously come up with new ways to access databases. Here, blockchain technology plays a role.
Considering blockchain, what will happen to digital marketing?
Four examples showing how Blockchain will Affect Digital Marketing:
1. Maintain a keyword list
The majority of the time, each person’s Google experience is different. The results that other searchers view will vary depending on their location and the type of device they are using. This makes it challenging for marketers to monitor the position of keywords.
If search were to employ blockchain, information about location and device usage as well as each page’s rating might be recorded on the blockchain.
This data may be useful in assisting marketers in determining how to perform better in places and on platforms where they aren’t currently succeeding. It would be able to determine, using the same data, why some locations appear in Google Local Pack results and others do not.
2. Improved Leads Quality
It’s likely that a customer is interested in your business if they provide you with their contact information. As a result, it is much simpler to generate leads and close sales because the prospects are already prepared.
Currently, there are several methods for gathering data for marketing. Many marketers gather information from several sources, combine it, and use it to launch a campaign. This approach is not ideal, and many campaigns rely on unreliable or inaccurate data.
Since blockchain transactions are decentralised, marketers must approach the consumer directly. One instance is the business Brave, which created a browser that prevents advertisements. Despite the fact that it’s nothing new, it does display advertisements to consumers that it sells to businesses using basic attention tokens (BAT). Users receive 70% of the token value, while Brave receives 30%.
How are adverts targeted by Brave? Users can choose to provide to the business as much or as little information about themselves. Using the demographic data that Brave has available, advertisers select their target markets, but they never know exactly who is viewing their ads. This might be a fresh approach in the future.
3. Resources for Combating Ad Fraud
Advertising fraud is a widespread occurrence, as marketers are all too aware. According to Verasity, by 2023, ad fraud may cost marketers $100 billion. The VeraViews tool from Verasity uses blockchain to examine first-party and third-party data to assess the likelihood that a user actually saw an advertisement. This hinders advertising fraud.
Because the blockchain is quick, precise, and unchangeable, tools like this guarantee that advertisers will only pay for legitimate views and that publishers will get paid more and faster.
4. Greater Consumer Transparency
Any brand that wants to appeal to millennials and members of Generation Z must be authentic. Helping with issues like fair trade and the environment is also acceptable.
A brand of hot drinks, for example, could utilize blockchain to open up its supply chain. If a customer wants to purchase coffee that was produced ethically, they can look at a company’s blockchain to learn who farms their beans and how much they are paid. When the coffee leaves the plantation, how long it spent at sea, and where the beans were ground might all be discovered. Even the average temperature that the coffee beans were stored at while being transported to the people could be seen.
Blockchain is transparent and reliable because it cannot be altered. Brands would benefit if they were more effective and had reduced transaction costs.
How Blockchain Technology is Creating a New Era of Digital Marketing?
Let’s examine this from a technical perspective:
- A transaction is requested by one party
- Requested transactions are distributed to all nodes in a peer-to-peer network.
- As soon as a node receives a request, it runs an algorithm to determine whether the transaction is genuine.
- Blocks of approved transactions are displayed and appended to a public ledger.
- Once the block is included into an existing chain, the transaction is complete.
Blockchain is fundamentally a type of ledger that enables two people to deal and communicate online without the need for a third party to verify them.
1. Market Transparency
Digital marketing works nicely with blockchain, a decentralised database of encrypted nodes connected to one another. Blockchain technology has the ability to address many of the issues associated with digital marketing, including privacy, security, and monetizing content. Customers feel secure because blockchain data is transparent and firms cannot alter it.
2. Removes the Middleman
Without blockchain, a company would need to use Google AdSense to place banner ads on its website in order to prevent dishonest companies from occupying its ad space. In this case, Google manages the transaction and collects payment in return. Companies won’t need to employ a third-party platform like Google because of the blockchain framework. This is due to the fact that blockchain users may be verified through their networks. Instead of maybe paying for clicks that aren’t real, people would know what they’re paying for.
3. Allows customers to control their own information
Without the customers’ consent, marketers won’t be able to obtain their personal information. They will need to obtain the customers’ permission instead. Customers can now charge for their contact information and attentiveness using blockchain technology. The information that consumers get will therefore be completely within their control.
4. Data Security and Safety
Marketers may utilize blockchain technology to securely store vast volumes of customer data as stringent data protection regulations like GDPR take effect in all major regions. Blockchain technology can also be used to manage GDPR compliance, which mandates that marketers obtain customers’ consent.
If blockchain technology is applied, the world of digital marketing as we currently know it may alter. Marketers can benefit greatly from a blockchain’s security, transparency, and performance capabilities. There are countless options. Businesses will need to take responsibility for what they do and be more transparent about it, and consumers will have greater control over which companies may send them information.