What does Blockchain Technology mean?
Ever thought about a crystal clear and transparent world of Digital marketing? No, right!
Here comes the hero, Blockchain Technology who made this dream come true. Let us know more about this savior who made the digital marketing industry more secure and fraud-free.
In this blog, we will cover what is blockchain technology and how this new tech will help in building security for the brands as well as for the customers.
Table of Contents
What is the term ‘Blockchain Technology’?
Blockchain technology is about a database that stores data in the form of blocks and each blocks merge to form a chain.
Once the data is entered it cannot be changed or tampered making it more secure and stays there permanently.
It was first built in cryptocurrency, now it has expanded its features to digital marketing.
Key Elements of Blockchain Technology:
- Decentralization: Unlike the old database, it is not controlled by a single company i.e., the blockchain is distributed among all the computers (nodes) and each node or participant has its copy of the entire database.
- Transparency: In cryptocurrency, all the transactions done in blockchain are public ledgers. As for digital marketing, the data available to marketers are based on how the users provide them. Marketers gain an advantage as it allows them to see how well their campaign is doing, and reduces the incidence of advertisement fraud.
- Security: Security is one of the foremost aspects of a customer while sharing their data online. Blockchain provides a level of protection that’s hard to beat. If someone tries to alter one block, they might need to change every block in the chain, which is extremely difficult.
In digital marketing, this technology builds a strong interaction of trust and transparency between the brands and their customers. But how does this exactly apply in the digital marketing industry?
Here, are some of the applications of blockchain technology in the field of digital marketing.
Applications of Blockchain Technology
- Ad Campaign: It is the most concerning part of digital marketing as it causes the loss of billions in consumer spending as a result of fraudulent clicks and ads. Blockchain has added to the innovation of the campaigns but reducing activities that don’t add on the value. This enables the marketers to know that, the ads are shown to the real people, not the bots.
- Improvisation in Data Privacy: This allows the prospects to control the data which is shared with the brands. They can keep a keen eye on how the data is being utilized. It has brought more space for both the user’s and the brand’s privacy which led to an environment of reliance and loyalty among them.
- Streamlined Supply Chain Management In brand industries like fashion and food, blockchain resolved the supply chain of their products which turned into a unique selling point for marketers, who care about their sales and fair trade. It helped the source element to be conducted in a custom way.
- Smart contracts in Influencer marketing: Influencer marketing is the talk of the town among youngsters. As it has paved the way to showcase their content-driven creativity and talent. But in the payment-related instance, it comes with limitations. Blockchain via smart contracts has made it more convenient for both parties, the contract states that payment will be due only after meeting the criteria of influencer marketing for example reaching a certain number of engagements or followers.
- Loyalty Programs and Rewards: Introducing blockchain-based tokens or rewards to the customers in exchange for purchasing or engagement with the brand product will help the marketers target the audience who are genuinely interested in their brands and it additionally creates better user experiences.
Drawbacks of blockchain technology in digital marketing
- Scalability: Blockchain technology can slow down large digital marketing campaigns which require immediate data.
- High Energy consumption: This technology demands high energy consumption to run which can be difficult for marketers as some of them might want to go green.
- Complexity and cost: It may not be beneficial for small businesses as it is premium to implement in their business.
- Limited adoption: Many marketers are uncertain to invest in blockchain technology as it hasn’t been proven to be used in the industry yet.
Future of Blockchain in Digital Marketing
Despite having challenges to face, within time blockchain technology is promising to improve and would be approved in the digital marketing field as it has the potential to keep data more assured and to connect marketers directly to their audience.
This would yield cost savings, and consume less energy. Along with AI, it will enhance personalization marketing.
Conclusion
Blockchain in digital marketing can be a technological progress and evolution for industry enhancement.
The data protection as well as building a belief within the followers and marketers to come along to fullfill eachother’s needs.
By introducing privacy laws, loyalty programs and smart contracts will upgrade the growth of digital marketing in the coming future. This will bring reliability and allegiance to an increasingly competitive landscape.
