5 Ways Blockchain DLT Can Be Used For Marketing
The 2008 global financial crisis utterly damaged public confidence in the traditional banking sector. The emergence of the decentralised peer-to-peer electronic currency system known as Bitcoin during this period exemplified the use of cryptographic methods for the processing of financial transactions. Four kinds of cryptographic techniques are utilised to support Bitcoin: hashing, consensus processes, asymmetric encryption, and time stamping.
Bitcoin not only solved the problem of double spending but also introduced a new standard for performing financial transactions and transferring value in virtual environments. In addition, the influence of blockchain technology on marketing would revolve around the technology’s primary function, which is to verify the validity of transactions. Since all transactions are consecutively deposited in blocks with timestamps, the public transaction records that are recorded on the blockchain cannot be altered.
Utilizing blockchain technology in marketing might result in fundamental changes in how consumers interact with businesses. A distributed record of transactions executed by parties participating in the blockchain network is one of blockchain technology’s most noticeable advantages. Additionally, Blockchain provides the benefits of several other technologies. The major objective of blockchain technology is the verification of assets; however, the technology may also be used in other sectors of economic activity.
Marketing Implications of Blockchain Technology
The disruptive nature of blockchain technology is well knowledge, as is its impact on the market. In recent years, blockchain technology has generated substantial waves of change, delivering value advantages to use cases like asset management and monitoring as well as regulatory compliance.
Even though many businesses are still in the implementation phase, blockchain technology has created new productivity opportunities. On the other hand, there hasn’t been a great deal of research on the marketing applications of blockchain technology, so there’s a lot of space for interpretation of the importance of blockchain technology for marketing.
Following is a list of some of the main ways in which blockchain technology may affect the marketing strategies of businesses.
1. Decentralization should get more attention.
The introduction of the internet was the first push for decentralisation, which also brought major changes in how companies distribute their products and services. Traditional intermediaries have been replaced by new digital intermediaries that provide a wider range of services and solutions for modern business transactions.
Modern eCommerce intermediaries offer a variety of services, such as the provision of trust, online search capabilities, communication, information brokering, and advertising. In addition, social networking sites such as Facebook, Instagram, and Twitter provide new communication channels for businesses to reach their target consumers (customers). It would seem that the present digital intermediaries are competent in the duty of advertising a business to the target audience.
In contrast, centralised digital intermediaries have the potential to lock your data in their possession, which increases a company’s reliance on them. In addition, concerns about managing your communication channels and monetizing customer data contribute to the uncertainty around the digital marketing tools that are now accessible.
Blockchain technology may be able to give a tool that supports businesses and customers in avoiding the obstacles presented by middlemen. This would make it the ideal answer to all of these issues. In light of this, the answer to the question “How is blockchain used in marketing?” should reflect the decentralisation potential.
In addition to expanding their advertising campaigns and enhancing the timeliness of their customer care, businesses may also improve their client targeting. The interactive and ubiquitous qualities of blockchain are advantageous to marketers’ attempts to convey advertising information to customers. The applications of blockchain technology in decentralised marketing have the potential to facilitate the removal of activities that contribute nothing to the overall marketing process.
Businesses may also provide consumer incentives in the form of loyalty schemes. This would increase the likelihood of strengthening the direct connection between customers and brands. If blockchain technology is decentralised, a new paradigm for enhanced consumer contact and collaboration may become accessible.
2. Click-Based Fraud Detection and Prevention
The lack of blockchain use cases in the marketing industry is one of the most important aspects that may have contributed to the limited quantity of research conducted in this field. Communication is vital for keeping customers updated on new product and service offerings, as well as other advancements. On the other side, the many internet scandals and fraudulent activities cast doubt on the necessity of doing business online.
Due to the development in popularity of online sponsored search within the business models used by several search engines, click fraud has emerged as a major challenge for online advertising. In recent years, click fraud has acquired considerable popularity due to the rise of automated digital marketing and enhanced tactics for target marketing. When a corporation or individual attempts to influence the advertising budget of a competitor, they are participating in a kind of competitive behaviour.
The ability to prevent click fraud elegantly underlines the importance of blockchain technology in the marketing industry. The severity of click fraud may indicate how, given its potential effect, it poses a substantial threat to digital marketing. It is conceivable that marketers will incur $44 billion in additional expenses by 2022 as a consequence of this aspect.
Blockchain offers the ability to alleviate the risks associated with click fraud by establishing a more dependable environment for digital marketing interactions between firms and consumers. A marketing plan based on blockchain technology will encourage participants in the marketing business to work in an open and shared environment, with each member carrying out their duties with honesty and integrity.
The removal of information imbalance issues would be one of the possible uses of blockchain technology in the context of the fight against click fraud. The collaborative activities would help in increasing control and oversight over publications by doing an in-depth study into their credibility, historical data, and qualifications. This may be performed by using
The chain platform is an example of how blockchain may be used to fight click fraud in the marketing business. The platform operates as a transformative protocol within the field of marketing technology and offers marketers unique capabilities, including real-time lead tracking and campaign audits. The adChain protocol uses the immutability of blockchain technology to prohibit pay-per-click providers from profiting from fraudulent traffic and ad clicks.
— Kopjes Kattenoppas (@Kattenkopjes) May 26, 2017
3. Enhancement of Advertising Environments’ Credibility and Openness
Blockchain technology offers the benefits of decentralisation as a solution to the issue of digital intermediaries exerting control over a company’s marketing process and decisions. Concurrently, it is crucial to recognise that consumer trust in brands has been falling at unprecedented rates.
If you want to develop a blockchain marketing strategy, you must realise that the quality of the technological infrastructure impacts the amount of customer confidence in a brand’s marketing campaign. If you want to develop a blockchain-based marketing plan, you must comprehend this notion. By easing interactions between consumers and businesses in a transparent and trustworthy environment, blockchain technology has the potential to contribute to the expansion of trust and transparency in the field of online marketing.
The most eye-catching characteristic of blockchain technology is its inherent trust. The trust protocol that supports blockchain technology gives assurance about the sincerity and integrity of brand and marketing experts’ conduct; this is the most notable feature of blockchain technology.
A reputable blockchain marketing agency would aim toward the development of customer-centric transparency, particularly in instances where customers are compelled to disclose personally identifiable information (PII).
In addition, blockchain technology can increase trust and transparency by combatting the fraudulent selling of counterfeit products, which violates the intellectual property or IP rights of the original producers. In addition, increased visibility and the ability to check compliance duties, together with end-to-end product traceability, may also contribute to a company’s processes being more transparent.
4. Improved Online Advertising and Marketing Security
The underlying cryptographic algorithms that ensure the security of the system have served as the foundation for the creation of blockchain technology. The discussion over a blockchain-based marketing strategy would centre on security threats, which are defined as circumstances, conditions, or occurrences that pose serious risks to marketing campaigns and systems.
Before organisations can integrate information security into their marketing initiatives, they must create a solid technical infrastructure to address the existing security holes and enhance client confidence in the digital marketing environment. Blockchain technology’s decentralised and distributed data storage may provide significant benefits for both users and the businesses that service them.
Access control, asymmetric encryption, and digital signatures are three distinct security techniques whose functionality may be used to your benefit. In addition, you may make use of make characteristics of several security systems. These security measures may aid in securing the processes used to store, transfer, and retrieve vast quantities of client data.
Blockchain technology offers a new strategy for the decentralisation and self-organization of a corporate ecosystem, enabling the effective synchronisation and integration of marketing-related data across network members. This category may comprise information such as product listings, marketing plans, pricing policies, the results of market research and analysis, discounts and other promotional incentives, and advertising.
If consumers had access to a centralised database containing accurate information about a brand’s goal, values, and goods, they would be better positioned to take make of blockchain’s marketing potential. The lack of a single point of failure provides various advantages, the most significant of which is a greater degree of assurance about the security of digital marketing initiatives.
5. Marketing that reduces customers’ concerns about their privacy
A blockchain marketing firm’s responsibilities are not limited to ensuring that the marketing process is safe, trustworthy, and transparent; rather, this is just one component of their work. When determining whether or not to utilise a certain internet technology service, privacy is one of the most crucial factors to take into account. Research indicates that customers are concerned about keeping their identity and privacy while doing business online.
The increased probability that users would be misled into providing personally identifiable information is directly responsible for the rise in users’ privacy concerns (PII). In addition, you can observe how current data collection and data mining technologies may help businesses discover, monitor, and collect client data. This is anything visible to the naked eye. On the other side, blockchain technology can aid in the resolution of a range of digital marketing privacy problems.
In terms of marketing for privacy, one of the most important uses of blockchain technology would be the ability for customers to stay anonymous during a transaction. Transactions on a blockchain are not tied to real identities, and the structure of restricting network member access to block information may help enhance users’ perception of privacy.
Even if transactions are reviewed by the whole network, no one is aware of the details of the parties involved. Moreover, the usage of blockchain for marketing illuminates the possibility for consumers to utilise transactional history to obtain greater control over PII in digital marketing initiatives. The application of blockchain technology in marketing may reveal these opportunities.
The blockchain-stored transaction history may be able to provide customers with greater and more sophisticated analytics without compromising their right to privacy. In addition, clients of a certain brand may research the potential of securely exchanging their personally identifiable information in return for extra services or other advantages.
An analysis of the potential advantages of using blockchain technology in the marketing business reveals that doing so is a wise gamble. Blockchain is the most ideal technology for use in marketing since it is meant to enable decentralisation, security, and anonymity. A blockchain marketing business would primarily focus on incorporating these benefits into your existing marketing strategies while providing an opportunity for their evolution.
In addition to supporting clients in recovering control of their personal information, blockchain, a distributed ledger technology, may improve the security of digital marketing operations. With the use of blockchain technology in marketing, firms have the chance to seek improvements in their abilities to prevent click fraud. Utilizing blockchain technology allows businesses to optimise the cost of their marketing campaigns while also bringing substantial value advantages. Learn more about the marketing uses of blockchain technology by doing more research.