Complete Guide: Impact of Blockchain in Digital Marketing

Complete Guide: Impact of Blockchain in Digital Marketing

Data drives the markets these days. Blockchain became famous at the global stage due to its involvement in Cryptocurrencies, especially Bitcoin. The major functionality of Blockchain is that it allows transparent transactions without the need for third party authentication. Many professional consider Blockchain in future as important as AI and Analytics for marketers. But in reality AI and Analytics will benefit businesses only over consumer while Blockchain has better equation for equilibrium. Blockchain Technology has potential to return data control to data owners increasing transparency in digital world. Blockchain technology will bring changes in digital marketing space through lot of factors some of which are mentioned below

Power of Data back to people

Until now all the businesses have benefited a lot by collecting consumer data and providing them with personalized experience. These businesses don’t compensate consumers for sharing data. They use various machine learning and AI combinations to gather and analyze social, behavioral and historical data of the consumers. In this entire process the consumer gains nothing at monetary level and also their privacy gets hampered. We have seen various platforms like Facebook ads and Google ads which earn a crazy amount of money by their digital advertising business. The brands and third party advertising platforms are the ones who are getting most out of it. But now there are platforms like Brave browser which allows users to completely control whether they want to see any ad or not. Other than this they also compensate their consumers when they see any ad. They have a metric called attention span using which they monetize their consumers unlike other search engines.

Ad spent confusion

Around 20 years ago for every dollar spent 80 to 85 cents went to the publisher. The reason for publishers not getting 100 percent was because brands had to pay a modest fee to any creative agency or ad placement firm. But nowadays only 30 to 35 cents reach the publisher for every dollar that brand spends on ads. The reason for this high deacreamnet in share of publishers is due to increasing intermediaries. Nowadays, the money gets divided between an agency trading desk, an ad exchange, various ad networks and the publisher. IBM on its blockchain platform hyperledger is building blockchain based applications that would help brands to save money paid to ad platforms.

Better qualified leads

Currently marketers gather data from various sources, optimize it and then run the campaigns. But in the case of platforms based on blockchain the data will be decentralized. So unless and until a consumer wants to share his data with you it wouldn’t be available. If a customer is interested in buying any product or service in your niche and shows an interest and allows data access, marketers will be able to acquire data. There will be an upfront cost for that of course but the chances of prospect conversion will be much higher as the data has come from the customer himself.

Smart Contracts

Using Blockchain technology marketers can propose smarter contracts in which transactions will be initiated only when certain requirements are met. This will be more useful in Influencer Marketing where both the parties will be able to maintain 100% integrity and compliance  with the contract terms.

Companies leveraging Blockchain technology

Currently there are many tech giants like IBM Corporation, Amazon Web Services, Accenture, Microsoft corporation, Oracle Corporation , Infosys who are investing heavily in building products in Blockchain technology. Also there are many non-tech businesses who have run pilots on blockchain technology. Some of such businesses are Kellogg, Kimberly-Clark, Pfizer, Unilever, Mcdonalds and Virgin Media. The main aim of these brands to enter pilot was to improve online ad and transparency. Even Automotive giant Toyota is using blockchain to remove frauds from its digital campaigns.

Bottlenecks for Blockchain in Digital Marketing

Blockchain in Digital Marketing will face a lot of competition from current Digital Advertising giants like Google and Facebook. Both giants have worked continuously to improve their platforms in terms of performance and user friendliness. There are high chances that these platforms may include a few features of blockchain in their platforms as well so that people are more confident on their platforms. Google’s cookie policy can be a major step in this direction.

Another major issue can be lack of scalability. For example bitcoin based Ethereum can handle 20 transactions per second whereas Mastercard can easily process 2000 transactions per second. 

Another issue with Blockchain can be it doesn’t have a good image in a bunch of people as generally it is interrelated with Cryptocurrencies. Cryptocurrencies are not considered as legal entities in many countries.

In Blockchain data cannot be controlled sometimes especially when a single company owns more than 50 percent of nodes. Most of the blockchain apps need a hyperledger feature which not many clients are interested in investing into. Also blockchain requires a lot of energy and may require heavy budgets.

Conclusion : Impact of Blockchain in Digital Marketing

Blockchain can really be the future of digital marketing and will help us to overcome a lot of challenges that we face today. But it will come with a new set of issues which will become important to address.

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