How Blockchain Impacts Digital Marketing?

How Blockchain Impacts Digital Marketing?

When we hear about blockchain , the first things that come to mind are finance, cryptocurrencies and accounting systems. It is normal, day by day we are being subjected to a real barrage of news about bitcoins, banking decentralization and all the blockchain technology associated with the financial world.

For most people, this avalanche of information does not allow us to reflect on blockchain and discover its tremendous power to transform and solve problems in many sectors. One of the most promising and that most directly affects us:  marketing and digital advertising.

First of all, let’s start by getting up to speed on what blockchain is . If you are not yet familiar with this technology, I recommend reading my previous article « Everything you need to know about blockchain » or watch the following video from IBM Think Academy: Blockchain , how it works:

Now yes, we can break down the uses that blockchain is going to have in the digital marketing sector and, why not, anticipate and apply them to our campaigns.

Direct-to-consumer Digital Advertising And Decentralization Of Web Search Engines

Currently large advertising networks, web search engines and social media platforms control the digital advertising market by connecting advertisers, content creators and users. Small pieces of code called cookies are used to track us as we browse a website and record the commercial advertisements we see.

Thanks to blockchain , advertisers will be able to create their own advertising networks and directly pay their audience for viewing their ads. This means that companies will have direct access to the information generated by their audience and will compete for the real attention of the public, and not just for the impressions generated.

Oddly enough, it’s not science fiction, it’s already a reality thanks to web browsers like Brave and its Basic Attention Token digital currency that allows advertisers to pay their audience based on the “mental effort” made by the user while viewing the ad. The advantages over the current system are evident, advertising spending will be focused on a perfectly segmented audience, with a real interest in a brand, product or service.

Also keep an eye on BitClave , another web browser that uses Etherum’s blockchain technology to return the privacy of search data to the user and directly connect businesses and consumers.

In the not-too-distant future, users will decide how much personal data they want to share with advertisers when they search the web, and will be compensated for it. Instead of giving the data away to an intermediary for supposedly free services, we will decide to sell it directly or not. Will this mean the end of giants like Google or Facebook? It remains to be seen, but their business model is seriously threatened by this new technology.

Goodbye To The Middleman, Hello To Smart Contracts

You have already seen how blockchain technology , and its decentralizing capacity, can turn any business sector upside down , eliminating intermediaries. Now, this would not be possible without an agreement between the parties involved, that is, a smart contract .

Smart contracts are scripts or pieces of code created and distributed in a blockchain network , they work autonomously (without intermediaries, authorities or interpretations) facilitating the verification and execution of the terms of the contract in an immutable way , they can only be replaced by a new smart contracts .

The potential is almost revolutionary in the world of digital marketing and will optimize cross-promotion deals. For example, if a blogger never publishes an agreed social media post about a brand or product, the current smart contract will not authorize compensation. Each contractual milestone must be met to make way for the next.

Smart contracts will provide great agility to digital marketing managers when carrying out affiliate programs, in addition to solving current problems such as fraud with bots and the simulation of visits and interactions. Take a look at AdPump IO , the next generation of blockchain -based affiliate program trackers .

Transparency And Trust Towards Consumers

In addition to decentralization, another great potential of blockchain is its great transparency when it comes to recording transactions. The demand for transparency on the part of society is increasing, and not only in the financial or governmental world, but in any other sector of large consumption such as food, textiles or transport.

Consumers will demand that industries be able to easily check where their products come from, rule out if they are counterfeit or if countries with suspicions about the working conditions of their workers have intervened in their production. Blockchain technology will give enormous power to consumers who will see their customer experience improve, and it will give industries the opportunity to build their brand image on values ​​such as social justice, respect for the environment, etc.

A great debate has been opened around blockchain and its disruptive power in the digital marketing sector and all these aspects of decentralization and transparency are yet to be seen.

However, from my point of view, the digital transformation of society not only involves the democratization of information on the Internet, but also that of transactions in a blockchain system . This will not only improve the user experience, security and privacy, it will also revolutionize the way companies plan their marketing strategies to approach them.

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