In order to explain what blockchain marketing is we need to start by giving a simplified definition of what a blockchain is. A blockchain is a method of decentralized, digital record-keeping that creates a ledger of transactions that is transparent and impossible to tamper with. The very nature of the blockchain makes record keeping safer, more energy-efficient and faster.
There are many that are skeptical of Bitcoin and other cryptocurrencies, however, they believe Blockchain Technology is here to stay. The reason for this is that this new system will fundamentally change the way that many major businesses operate. One of these businesses is digital marketing.
Changing data collecting
Millions of people have access to the internet. But it is all done through Internet Service Providers and Web Browsers. These companies can track us and learn from everything we do online, from the people we talk to, the things we buy, the websites we visit. These large companies have collected all the data they want about our habits.
Just like everyone else in the world these companies are in business for the bottom-line profits. We would be foolish to think that they will not use the most powerful information in the world for their own benefit. Our personal data is being utilized in many ways without our knowledge.
Now imagine if there was a way that consumers could choose who they share this personal information with. A simple explanation is, signing up for a loyalty card from a grocery store. Each time you swipe the loyalty card you give that business access to your purchasing habits.
In return, you get some kind of discount from the store when you purchase. This is a simplified version of selling your data to a corporation with your consent. In this way, the consumers get to choose who they share their information with and for what price.
They are not forced into situations by giant monopolies who have access to all their information. Instead of having your life subconsciously modeled by an algorithm, you get to regulate it through your own choices.
Fixing Digital Display Advertising
Visit any website and you are bombarded by adverts. Display advertising has been around for as long as information has been published.
While marketers get results from them, there are serious flaws in the online display adverts. These adverts are almost completely controlled by two profit-making companies, Google and Facebook. From the advertiser’s perspective, the campaigns are expensive and difficult to manage.
From the consumer’s perspective display ads are intrusive, annoying, they waste your bandwidth and drain your device’s battery. Today’s consumers are tired of seeing adverts for products they will not purchase.
Through blockchain marketing, advertisers can eliminate cold advertising and connect directly with consumers who are interested in their products and want to see their ads. The conversion ratio of the advert to sales increases dramatically, effectively decreasing the advertising costs.
Eliminating the middleman also reduces advertising costs and frees the advertisers from the clutches of the algorithms used by Google and Facebook which are not always in their best interests.
Blockchain marketing allows consumers to sign up to an advertising network. In exchange for agreeing to share their information with the advertisers, the consumers get paid in the form of discounts on their purchases. This win-win scenario which directly benefits both consumers and advertisers is the fastest way of achieving optimum growth in both sectors.
Consumers are tired of having their personal information gathered and used by the tech giants. Legislation dictates that websites inform you when they put cookies on your computer. This practice can be eliminated through blockchain marketing. The consumers now own their data and are back in the driver seat as they decide who they share their information with and at what cost.
As with anything new, there are always those who resist change. This certainly applies to blockchains as they are not always easy to understand.
Blockchains are currently in the infancy stage and in many instances still theoretical. But even if only a few of blockchain’s uses come to fruition it will certainly influence the way marketers go about attracting buyer attention in the digital media.
One thing you can be sure of is that with many huge companies pouring so much money and effort into Blockchain Marketing there is sure to be a lot of movement in this space over the coming years.