With the arrival of Big Data, data on user choices began to be crossed, allowing marketing activities to be directed to the right people. Once a user expresses a preference, they are impacted with targeted advertising. This allowed brands to better optimize their budgets by impacting the public that showed some interest in their product or service.
Now, what happens to digital marketing on decentralized platforms? Which challenges and opportunities will have to face? Can provide solutions for some problems experienced by digital marketing? In this blogpost we will try to understand how blockchain will change digital marketing.
Digital Marketing today
Ads target audiences that are likely to purchase its goods and services by using data collected on users by private companies. These private companies use the data for their own marketing campaigns or sell the information to other companies that want to use it to target some specific audiences. In a few words, users’ information is gold and it’s “owned” by privates.
How is digital marketing in blockchain?
Blockchain verifies and records all transactions in one place. This has helped many marketers gain access to accurate leads and provide their customers with a better experience. This is why it has become one of the most rapidly growing technologies across various industries.
Blockchain is normally associated with cryptocurrency, but it has much more. The ability to verify both parties in a transaction and make a permanent public record of the exchange impacts all areas of business. It’s set to change a lot of the ways businesses do digital marketing and advertising.
Let’s see some of the ways blockchain will change digital marketing and advertising.
Data privacy has always been a critical issue for consumers. The recent Facebook data scandal has caused many users to claim the right to limit the amount of information they share online.
Blockchain technologies could help improve privacy by being a secure and decentralized platform.
Data security is a huge issue for everyone who buys and sells online. With blockchain, each transaction is verified and publicly visible, but the people involved are anonymous. As a result, it guarantees better security for all transactions, and everyone involved is still completely anonymous.
Quality Consumer Information
Blockchain will allow users to charge for their contact information ensuring that only the companies they are interested in, receive their data. Instead of wasting money on data from uninterested people, companies will get targeted and accurate information from those who are truly interested.
Usually, data collection for marketing is an integration of different approaches. Marketers collect data from various sources, combine them and run a campaign. Sometimes these campaigns run on inconsistent and inaccurate data. In this case, blockchain will help to get access to accurate data as all blockchain transactions including NFTs are decentralized. Another way to avoid this is working with a trusted ad tech company that guarantees traffic quality.
Marketers will have an accurate source for data collection directly from the consumer. They can either pay or incentivize consumers for their data. This will ensure high ROI from the campaign run-off and a highly accurate data sourced.
It will be more effort and cost upfront, but marketers will gather far better leads using blockchain.
Blockchain makes payment transparent with crypto. Companies won’t have to worry about checks, bad credit cards, or other chargeback issues. With more secure payments, companies could save thousands each year on banking fees.
Blockchain will make the business gain transparency in their operations. Also will bring transparency to the products, tracking from where they are getting manufactured to where they are being supplied. Every step of the larger process could be tracked with blockchain. As the information will be open to the public, companies will become more responsible and accountable for their actions.
Companies have already started investing in blockchain technology; like IBM and Walmart enable the supply chain process with blockchain technology.
As we said before, consumers will have control over their information. Businesses will be held responsible and accountable for their activities, and it will ask them to maintain transparency.
Nowadays when you make any transaction or share information with one party, you start receiving advertisements even if you have not given any permission. Blockchain will change these actions, giving the user the power over their data. If a company wants user’s data it will have to either pay or incentivize consumers to get access.