What comes to mind when you see the word Blockchain Marketing?
Most people think of the technolgy behind the global technology trend Bitcoin and other similar crytocurrency and digital ledgers. However the potential is much bigger.
Don and Alex Tapscott, authors of a 2016 book called Blockchain Revolution, offer this definition:
The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.
Blockchain has tremendous power to disrupt and solve problems in other sectors, too. One of the most promising areas: marketing and advertising. This post will focus on advertising…
In advertising, blockchain-based protocols could change how online ads are purchased, delivered, measured, and valued. In fact, it could even lead to accurate data on the ad tracking front—leading to better returns overall. The following are what I see as the top four ways blockchain could contribute to the ad and marketing space.
Esablishing Trust with Ad Buys
Online advertising can be tricky to understand. There are so many options to choose and when the statistics come in every month they can be hard to read. In addition, how do you know if the stats you do receive are true and accurate? For example views. Lets say in one month you get 3000 views on your website or blog post. How do you figure out if the views were made by actual people or bots. Research shows bots cost companies more than $7 billion in damage in 2016 alone. Due to Blockchain being transparent and encrypted, companies can easily determine if the people viewing their ads are members of their targeted audience—or not—saving millions in ad spend each year. In layman’s terms: companies can make sure they get the advertising they pay for.
Eliminating the Middle Man
One Forrester analyst estimated that publishers removing middlemen could increase their CPM from $1 to $5. Blockchain may do even better. It could eventually shake up the market so much that companies can pay their targeted audience directly to view their ads—skipping the ad buy process altogether. Using “micro-currencies,” companies will vie for actual audience “attention”—not just imprints. And they’ll be able to prove they’ve gotten that attention before the currency is exchanged. The Brave browser, for instance, uses its “Basic Attention Token” (BAT) to allow advertisers to pay based on “mental effort” by the person viewing the ad. That means smarter spending—and connecting—with potential customers.
Targeting Audiences better
In the past, marketers and advertisers use personal information such as age, salary etc to build a customer profile in order to target certain products and services to them. Using blockchain, advertisers will now have the ability to build a customer profile directly from the customer—gaining all the information the customer is willing to share in one swoop. This allows for an even greater ability to market to the customers’ needs—and spend advertising on only those customers who are most likely to buy your product.
When you purchase something, nothing makes you more mad than finding out it is counterfeit. Blockchain’s digital ledger system allows for tamper-proof transparency of every product’s move through the supply chain. What that means is that buyers can easily check where a product has come from—who has handled it—whether it’s legit or faux, whether they are purchasing from an online auction or a brick-and-mortar storefront. This puts tremendous power into the hands of the customer—enhancing their customer experience (CX). Some companies, such as the Babyghost fashion line, have even used blockchain to tell a “story” about their product, including who modeled it on the runway. In that sense, blockchain does more than create trust. It builds brand.
With these recent successes in the digital currency market and the tecnology behind it, blockchain technology will not go away. It is still in the introductory stages but I believe it will improve and change the way we do business.
It will mean fewer unwieldy pop-ups when browsing and closer connections with the companies we want to support. And, it will empower customers themselves to choose which marketers they wish to hear from—all while getting paid for it!
Yes, the concept of blockchain has the power to disrupt our world on many fronts, but marketing is definitely one of the most exciting. And while it might seem overwhelming to those companies still learning how to use mobile apps to schedule their Facebook ads, my view—at least for now—is that it is here to stay.
Feel free to comment with your thoughts and ideas! I always welcome new ideas.
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