Blockchain can be defined as a decentralized distributed digital ledger that encompasses a database that is spread across multiple computing devices. Every time a data exchange or transaction takes place, it is stored in units known as blocks. As every block features a timestamp, transaction data, and cryptographic hash of the previous block, it is considered unbreachable. Instead of a centralized data storage system, blockchain leverages a peer-to-peer network that ensures that the data has been stored across various locations.
Every location is referred to as a node and contains the entire history of the data originating from the genesis block. Every time there is an addition to the database, all the nodes on the network are also automatically updated. All the transactions are verified by users and added to the existing blocks’ chain, which is immutable, i.e., cannot be edited.
While the financial industry was at the forefront of the adoption of blockchain technology, the digital marketing sector is also embracing blockchain rapidly, as there are many benefits to be availed here. Several new use cases for blockchain are being identified in the digital marketing sector. Experts are sure that blockchain technology will combine with web 3.0 applications to improve how data is being handled by digital marketers.
Blockchain concepts and strategies for marketing
When it comes to digital marketing, blockchain presents an impressive potential for all marketers to promote their products and services. Here are some of the most interesting blockchain concepts and strategies for marketing: –
- Decentralization: – Generally, most organizations follow a client-server model where the server hosts the entire data, and one must connect with the server to access the data. For instance, in case you must transfer some money to a business, you must use the services of a middleman as a bank to complete the transaction. This presents a serious risk in the form of a chance of a data leak. Whereas blockchain is a decentralized model wherein every node store information locally. This ensures that the customer data is secure at all times and their financial information is entirely safe.
- Purchasing ads without middlemen: – Generally, businesses must buy ads from companies like Google to ensure that they are displayed on high quality websites frequented by your target customers. This involves paying a considerable fee to that company. Blockchain allows you to entire bypass the ad networks as the users are verified automatically; hence the trust factor is always there. This allows brands who want to advertise and companies who have ad space to work together seamlessly.
- High quality consumer data: – Blockchain offers consumers an opportunity to charge the companies for the contact information and also make sure only relevant companies can access the data. This will allow businesses to not waste money on data related to uninterested customers. Instead, you will get accurate data for those customers who are really interested in the data.
- Creates trust: – Blockchain allows small businesses to build trust with customers quickly, even in markets with several large competitors. Businesses are able to establish the authenticity of the supply chain, and customers will be able to understand what you are offering and would be extremely interested in choosing your products over others.
- Alternate payment methods: – Blockchain will allow the companies to accept payment in cryptocurrency from the customers. There will be no issues with bad credit cards or chargeback issues. Secure payment options offered by blockchain also help save a considerable sum of money on banking fees.
Examples of Leaders in Blockchain and How They Do It
Here are the examples of companies that are using blockchain in their marketing and advertising efforts: –
1. IBM
Technology giant IBM leverages its blockchain platform for verification of the advertisement supply chain. IBM works in partnership with Mediaocean, leading advertising, and analytics platform, to deliver an end-to-end ledger and provide useful insights to the marketing teams. IBM is helping companies get rid of wasteful expenses on third parties and also identify fraudulent data.
2. NYIAX
It has emerged as the first marketplace in the world dedicated to advertising contract trading. This platform has been created in partnership with NASDAQ and leverages blockchain technology to facilitate advertisers and customers to buy, sell and trade advertising contracts. The financial matching engine from the company performs the verification of high-quality advertising contracts.
3. Verasity
It is a blockchain company that has placed itself as a solution provider for eSports, AdTech, and online entertainment. Verasity helps with the prevention of ad fraud through its patented proof-of-view technology. This platform helps ensure that the advertisers are paying for legitimate advertisements and allows the publishers to access their money quickly.
Without any doubt, blockchain is a powerful technology that has the potential to revolutionize the digital marketing industry. Companies must prepare themselves to adopt this technology at the earliest and unlock the true potential of their digital marketing campaigns.
