Blockchain Marketing: How will it affect the industry? Part 2

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What comes to mind when you think of 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 marketing…

Why is Blockchain Marketing So Important?

According to the American Marketing Association,

“The blockchain market, now worth approximately $600 million, is poised to grow to $7.74 billion by 2024, per Grand View Research. A study by Juniper Research finds that 57% of large corporations say they are either actively considering or in the process of implementing blockchain technology, and approximately 66% expect full integration of the blockchain by 2018.”

Epstein says blockchain will not change the fundamentals of marketing, but it will change business execution and strategies, likely rocking the world of those who are unprepared. With blockchain, anyone can transfer valuable assets from one person to another person without a third-party trust broker. Data is protected by its decentralization, Epstein says; think robbing one house (a data center) versus robbing 5,000 houses (the blockchain).

Epstein asks marketers to consider a unit of advertising space as an item of value: “Right now, I go through my 55 different intermediaries [when buying an ad]. You don’t need that in a world of blockchain,” he says. “We’re going to have a way to guarantee that the advertising you’re buying is showing up on the site that you intended it to and your software is going to provide you assurances that it is displayed on the space you purchased. … It can be a pretty big game changer for marketers.”

Here a scenario for how marketers can use blockchain to build trust with consumers: You go to the store to buy coffee. A brand bragging about its origins—an organic, family-owned farm in Nicaragua—catches your eye. Imagine an application that lets you put your phone on top of [the coffee], scan it and see the entire supply chain of the coffee bean all the way back to the Gonzalez family in Nicaragua. You have total confidence that it’s not just a claim anymore because you have proof; everything has been verified and logged by the shipper.

In this scenario, the cost of lying about a product becomes great while the value of telling the truth about it becomes greater. Marketers can tell the story of their product not simply as a storyteller, but as a documentarian. “That’s a great chance if … you can prove it,” Epstein says. “People will pay for the premium. People pay to be in line with their values.”

 Now think beyond the product: With verified information on the blockchain, companies can be completely transparent about values and business practices. How many women are employed at Procter & Gamble, for example? How many minorities are employed by Google? Companies self-report this data, for the most part, but only a few people truly know the answers. With this information on a blockchain, consumers can trust that the company is telling the truth about its values, practices and statistics.

If you’re a marketer, you need to fundamentally understand that the days of total bullshitting are coming to an end.

Feel free to comment with your thoughts and ideas! I always welcome new ideas.

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