How Blockchain is Changing the Future of the Digital Marketing Industry
What if companies started paying their would-be consumers directly for watching product advertisement? It would be a win-win for both. Companies would know exactly where their dollars are being spent, wouldn’t have to plan media buying and neither would the need to wait to find out if things really worked according to plan. Also, consumers would find themselves much closer to the company.
Though it would have sounded futuristic a few years ago, things are slowly progressing to that end. The technology to make this a reality is already making waves in the financial markets. Bitcoin the new crypto-currency is all the rage and is a prime example of the blockchain advantage.
But what’s the link? To understand how blockchain can disrupt the future of digital marketing you’ll need to know what this technology is.
Blockchain is a transparent public ledger, visible to everyone. Every user keeps the ledger updated. Every transaction is stored in a block which can only be built on to further the chain but cannot be modified. This makes the technology decentralized, unlike banks, secure because you can’t go back and change things and transparent because you can see details of every point in the chain.
How does this help with digital marketing?
Analytics: We have come to rely on various web analytics to calculate the efficiency of our ad campaigns. But there’s an inherent problem. We think all of the clicks are from genuine human beings, but according to a report in 2016 bots or programmed clicks cost companies 7 billion dollars.
So there’s no way of telling if the Facebook impressions or Google Adwords clicks were from real users. Blockchain can eradicate this issue.
If ad networks and social media started using blockchain, you would know how many people engaged with your advertisement, and who clicked on your ad as every transaction is recorded and there’s no way of tampering with them.
Efficient Business to Consumer Communication: Blockchain can also go on to eliminating middlemen. If companies could directly pay consumers to watch their product or service advertisements there would be no need to spend on media buy. This could be a very effective brand strategy as consumers would get the direct benefits of the ads. Companies would also be using their ad spends efficiently as they would know that they are engaging customers and exchange payment in digital currency after consumers have watched or engaged with their ads.
Gaining Trust: Today the consumer is very educated and conscious lot. With increasing ads and products vying for their attention they can now easily spot products that aren’t trustworthy.
Brands are similarly facing the challenge to stand out in a crowded and fiercely competitive marketplace.
Recently Walmart partnered with IBM and implemented blockchain for pork products it sold. Now consumers were aware of where the meat was sourced from and what route it traveled before it hit stores. As you couldn’t be any more transparent than this, it went a long way in capturing consumer trust.
A brand that embraces technology: As a company, if you don’t keep up with the latest technology, you’ll be left out in the cold in no time. Remember Nokia?
On the other hand, cashing on the latest trends is always a tricky play, as you never know how long it will last. But there’s a middle ground. If your business starts accepting bitcoins and other cryptocurrencies, it projects an image of being forward thinking. And if you’re one of the first in your niche, then you can build a campaign around it to capture the buzz, a classic win for your brand.
At Results Driven Marketing, we’ve been helping our customers increase ROI for every dollar they spend on digital marketing. If you’re looking to be found by more people who are looking for your services give us a call at 215-393-8700 to find out how we can help.