Sam Makad is a business consultant. He helps small & medium enterprises to grow their businesses and overall ROI. You can follow Sam on Twitter, Facebook, and Linkedin.
Integrating blockchain into digital marketing can be game-changer? It will provide enormous benefits like trust, efficiency, automation and many more...
If you're new to the world of blockchain, you might be wondering what all the buzz is about. It's a decentralized ledger-recording technology that's booming right now and has people talking about its potential applications.
The applications of blockchain aren’t restricted to cryptocurrency. Every industry, from manufacturing to healthcare, can reap its benefits. One sector ripe for blockchain innovation is digital marketing.
Blockchain and Digital Marketing: Understanding the Connection
Traditional digital marketing campaigns involve various channels, such as social media platforms, search engines, Q&A forums, etc. Also, they require marketers to collect plenty of data about target audiences before implementing any campaign.
The use of multiple channels and third parties, like ad networks, can quickly escalate digital marketing costs. Also, it can result in fraudulent activity in your ad campaigns. Many marketers even struggle to collect data from potential customers and reach out to them with the right messaging.
Furthermore, brands and marketers often find it difficult to cut through the noise and rise above their competitors. It’s equally challenging to win the trust of modern internet-savvy consumers.
Blockchain technology helps you overcome many of these challenges.
At present, digital marketers can use it to:
- Reduce advertising fraud
- Preserving data integrity and privacy
- Verify ad impressions and clicks
- Ensure transparency in financial transactions between advertiser and publisher
A common critique is that blockchain won't generate value unless there are some changes in business processes, organizational structures, and ways of working together. But with digital marketing being an industry that's already fast-paced, flexible, and open to innovation (especially compared to other industries), incorporating blockchain may prove easier than expected.
Here are a few crucial benefits of integrating blockchain into digital marketing:
1. Boosting transparency
Blockchain is making digital marketing more transparent for both brands and consumers.
One of the most important factors for maintaining trust between a brand and its customers is transparency. Brands that are open about their processes are more likely to build loyalty than companies that keep their inner workings hidden from the public.
Blockchain technology helps brands foster this kind of trust by providing a high level of transparency on all transactions, whether they be in crypto or fiat currency. Blockchain is the backbone behind cryptocurrency exchanges like OKX that let users buy and sell crypto tokens.
Besides powering cryptocurrency exchanges, blockchain lets consumers access a brand’s operations and supply chain. It helps brands capitalize on trends like sustainability and eco-friendliness. That, in turn, builds trust between brands and customers and skyrockets conversion.
2. Facilitating online payments
Blockchain can make online payments much more secure by adding a layer of transparency and trust.
When you buy something online, how do you know that you're going to get what you paid for? If a seller doesn't deliver the product, who's going to help you get your money back? These kinds of trust issues are still present in today's digital landscape. As more companies move their business online, the importance of protecting consumer data becomes all the more critical.
This is where blockchain comes in. Blockchain operates through a transparent network of computers, which allows users to view every transaction on its public ledger as it happens. No one is able to add or delete any transactions without authorization from other members of the network.
This means that blockchain addresses one of the most prominent trust issues with online payments: consumers and merchants no longer need to fear that one party will abandon their end of an agreement because the terms are visible to everyone involved in the transaction process.
3. Maintaining data integrity
One of the biggest challenges businesses face when it comes to digital marketing is data privacy. Consumers are becoming more and more concerned about how their personal information is being used by companies.
This concern isn't without reason—there have been many instances where companies have used customer data without their knowledge or failed to protect that data from hackers, resulting in data breaches and loss of private information.
Data integrity refers to the accuracy and consistency of data over its entire lifecycle. Achieving a high level of data accuracy and consistency is crucial for businesses, especially in digital marketing.
Blockchain can help you maintain data integrity by ensuring:
- That your data is complete
- That your data is accurate and consistent
- That no one can lose your valuable data
Also, it helps consumers control who can access their data and to what extent. Modern blockchain platforms even incentivize users with crypto tokens in exchange for their personal information.
While that might seem like a limitation for marketers, it ensures that you get the details of consumers who are interested in your brand/products. It becomes easier to convert such consumers into loyal customers.
4. Fighting ad fraud
Ad fraud is a common issue in digital marketing. Blockchains can be used to help fight ad fraud. Fraudsters attempt to steal the payouts for clicks and impressions on ads by using bots.
Blockchain makes it possible for advertisers to see when an impression has occurred and verify that a user has clicked on an ad, which allows them to detect ad fraud more effectively than before.
Also, blockchain helps eliminate middlemen (ad networks) from your advertising campaigns. Instead, blockchain platforms deliver your ads directly to the right audience. That means better returns for advertisers and more targeted marketing for consumers.
5. Maintaining a positive reputation
As you already know, trust is an essential thing for a successful business. It’s always better to avoid mistrust or even scam cases because they could turn customers away from your brand. However, if you use blockchain technology while creating a digital marketing campaign, you will never have any problems with customer trust.
Blockchain allows every transaction to be transparent and verifiable. In this case, no one can forge information or falsify data. The structure of the system is built in such a way that everyone can see all the transactions which were made by other users. This means that everyone can follow their own money and check whether it was spent correctly or not during the last payments.
Thus, blockchain technology helps you gain the trust and respect of your customers because they know that they can always get information about all transactions from your organization thanks to an open ledger.
6. Increasing advertisement effectiveness
Blockchain allows you to efficiently mine large amounts of data and transform it into relevant information. It helps you understand your consumers better so that you can precisely target the right ones.
One of the most important benefits of targeting the right audience is getting high click-through rates (CTRs). You need to make sure that your ads will be shown to people who are looking for what you offer. Otherwise, they will not click on them. Even though this seems like an obvious suggestion, many advertisers tend to forget about this simple rule.
Blockchain technology can help you gather valuable customer data and use it wisely in order to increase ad effectiveness. By implementing blockchain solutions into your digital marketing strategy, you can significantly improve your CTRs.
7. Improved partnerships with smart contracts
Smart contracts are automated agreements between two or more parties transferred to a blockchain network. They can be used for all types of marketing, from creating ad impressions on the web to managing affiliate programs. They can even be used to specify terms and conditions between markets and clients.
As smart contracts are executed in a decentralized environment, they don't rely on middlemen, advertisers and brands are able to save money by avoiding ad fraud. This is especially important since online ads get a ton of fake traffic.
Users also benefit from smart contracts as they can be sure that brands will use their data responsibly while accessing them via web or mobile applications. The transparency that smart contracts provide is unprecedented—with the potential to significantly impact our digital lives and change how we conduct business and interact with others online.
Trust, efficiency, and automation are the most important benefits you get from blockchain in digital marketing.
For marketers, particularly those who support small businesses or startups that lack an extensive budget for large-scale advertising campaigns, blockchain technology offers numerous new opportunities for reaching customers at minimal cost through tokenization.
It makes transactions more efficient by eliminating intermediaries and allowing data to be shared securely and instantly among network participants. Also, it speeds up transaction processing.
Blockchain eliminates human error. By removing the need for middlemen, it also removes human error from the equation, thereby increasing transparency in digital marketing and advertising efforts.
Blockchain is particularly effective in fighting ad frauds. Because it's decentralized and secure, blockchain can help marketers better track where their ads go after they're published online or through social media channels—and thus keep tabs on who's viewing them (and who isn't).
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