How will blockchain affect digital marketing?
Blockchain is a digital ledger whereby information is stored in blocks that can’t be edited or changed. The ledger is written on with new information in a way that doesn’t touch the previous information, therefore creating a secure system to transfer information.
There has been no serious data breach in blockchain to date, making it a reliable and useful technology for the digital marketing industry. Here are the top ways that blockchain technology will impact the digital marketing industry.
Increased customer trust
Blockchain technology is perfect for any industry in which big amounts of customer data needs to be kept secure, which is pretty much every industry. In digital marketing, blockchain can be great for securely encrypting and decentralising large amounts of data that need to be protected. With blockchain, data is decentralised and isn’t stored by a single party so it becomes a lot more secure.
What’s more, the blockchain can be clearly monitored and audited, so data breaches can be detected easily. Research also suggests that blockchain may help marketers become GDPR compliant and manage consent during data processing. All of these amazing security bonuses will help marketers look after consumer data, reduce breaches and increase customer’s trust in their brand – winning.
One of the biggest challenges that marketers face is finding the right people to consume their content. Every good marketer is keen to deliver the right ads to the right people. When marketers catch the right people, the consumer is happy to have found the product or service they need and the business saves time and money.
So, how will blockchain help this cause? Blockchain has created some amazing ad-blocking technology that compensates users for their time on ads and sharing their information. In a world where personal information is itself a currency, this technology makes lead generation and targeting a lot easier. There are a few of these tools about, including Brave and BitClave. Their end goal is to help consumers gain more control over what ads they see, which in turn means that marketers no longer waste time and money on people who, frankly, don’t care about their ads.
Marketing will become more transparent
It’s predicted that everything from influencer marketing to tracking and analytics will be affected.
Loren Baker at Foundation Digital suggests that the further introduction of blockchain will change the face of influencer marketing. He suggests that blockchain will enable marketers to see whether an influencer has genuine followers or is followed by bots. He thinks that this will mean marketers use top influencers with genuine followers, making marketing efforts more accurate.
It won’t just be influencer marketing though. Advertising in general will become more transparent and will therefore increase operational effectiveness. According to Smart Insights:
“Blockchain application development technology connects advertisers and users directly. It can eliminate the need for the middlemen. Apart from fraud protection and data privacy, this also reduces cost and increases operational effectiveness.”
If you’re interested in learning more about blockchain technologies and how they’re transforming industries, chat to one of our expert career consultants today to discover more about our blockchain and cryptocurrency courses from the IIB – the world’s first business technology certification body.
Want to know more about the background of blockchain and cryptocurrencies? You can head over to our article here to learn more.