Blockchain is a technology that is booming at an incredible pace. When Bitcoin was launched, blockchain technology was limited to cryptocurrencies. Today, more industries are exploring the benefits that come with this technology. Marketing is one of the industries benefiting massively from blockchain. This technology solves big problems facing the marketing industry.
Moreover, every business wants to establish a strong online presence in today’s highly competitive digital market. As such, businesses want to ensure they are well prepared with their marketing strategies. This is where blockchain comes to the rescue as a technology that can change the marketing and advertising industry. Blockchains can be programmed in most programming languages of your choice ie. C/C++, Java, Python, Solidity, etc. If you want to learn these languages, you can find the best programming tutorials recommended by the community on Hackr.io. For example, here are the best tutorials for learning Java. To learn more about Blockchain, one can always refer to several online blockchain tutorials online and get good at it. Read on for more details on how blockchain can drive marketing.
Understanding Blockchain
Blockchain is comparable to a database. A blockchain consists of multiple blocks that are linked together to form a chain. Each block stores information. The information stored in these blocks can be shared with desired users in a peer-to-peer (P2P) network.
Blockchain is secured using cryptographic technologies to prevent data tampering by unauthorized people. The data stored in the blocks follows a set of consensus-based algorithm. This means that once the data is stored by mutual consent, users are not allowed to edit, delete or add data to the blocks.
Every time a transaction takes place, whether it is contractual agreements or the exchange of information or money, the transaction takes place as a block. The block must be validated by all users within the P2P network, and after validation, a permanent digital record is created. Once you’re done, the block is added to the chain.
The technology behind the blockchain made it fully auditable and transparent. It has no central point of authority and also lacks a single point of failure or control. Thus, transactions made using this technology are completely secure and transparent.
Blockchain and the Marketing Industry
Blockchain technology has changed today’s marketing industry. Here are a few ways blockchain can improve your marketing strategies:
1. Target and engage the right audience
When it comes to online advertising, the majority of advertisers struggle to target the right consumers despite having their behavioral data. Most marketers have a lot of user data and still pay exorbitant fees to middlemen involved in advertising. Despite doing all this, they still can’t engage and target the right audience.
Blockchain is useful as an effective means of getting the right audience to see an ad. Blockchain creates a decentralized search engine where advertisers can easily reach their target audience. Through blockchain, advertisers can also compensate targeted customers using tokens when they provide their personal data to advertisers. Every time a person clicks on an ad, they get paid. People only see the ads they’re interested in, so only the right audience is targeted and engaged.
2. Prevention of ad fraud
Ad fraud is increasingly becoming a serious problem for marketers and advertisers. Paying for fake impressions and clicks is a common trend today. Consequently, ad fraud distorts analytics and this affects marketing strategies and decisions.
Blockchain technology is coming to show clicks on advertising platforms in real time. It also helps marketers by renting out their ad platforms and driving quality traffic. In this way, clicks are authenticated, thus preventing ad fraud.
3. Establish reward systems and loyalty programs
Customers never forget when they are made to feel special. Loyalty programs work well with sales because they make customers feel special. Blockchain can be used to create an unforgettable customer experience. Gift cards can be attached to the blockchain, thus creating a secure platform for maintaining and issuing loyalty programs and gift cards.
If customers accumulate gift cards and cannot redeem or use them, they will have a negative brand experience. With blockchain, gift cards can be converted into digital wallets or coins, making it easier for customers to use or redeem them. Additionally, different gift cards and coupons can be combined and redeemed in one transaction. This concept can save marketers thousands of dollars in their marketing strategies.
4. Crowdsourcing and data collection
Good data is extremely powerful for marketers. Despite having dozens of marketing tools at their disposal and trying different marketing strategies, most marketers are still unable to get accurate and quality customer data. Only the customers themselves can provide accurate data.
But how would a marketer get customers to share their data? This is where crowdsourcing and blockchain come in handy as a way to encourage customers to share their data. In return, they get some compensation, making it a win-win situation for both parties. In this way, the data obtained is very relevant and authentic.
5. Decentralization of e-commerce
Blockchain decentralizes the way consumers buy things online. The technology can be used by merchants to create decentralized marketplaces where merchants can sell their products or services directly to consumers without the need to use expensive third-party platforms.
6. Influencer marketing
Consumers tend to believe what other consumers say about a brand rather than what the marketer claims. Blockchain makes it possible to take advantage of influencer marketing. Through blockchain technology, marketers can verify the identity of influencers, validate their followers and receive a guarantee of their investment.
7. Eliminate the need for intermediaries
Marketing involves finance and that means transactions through banks. Blockchain technology comes with digital wallets and eliminates the need to transact through banks. Blockchain ensures that transactions run smoothly and reduces the costs associated with transactions through banks that act as middlemen.
As competition in the digital world continues to grow, marketers must look for innovative ways to boost their marketing strategies. Blockchain technology has proven to be a great tool that can boost marketing strategies. Although this technology is still new in the marketing world, it is already becoming a reliable alternative to other marketing tools such as Google banner ads and pay per click. Harnessing its full potential can certainly benefit markets by creating a transparent, authentic and secure customer experience.