How will blockchain affect digital marketing?
Over the past few years, cryptocurrency has transformed from a niche interest to something that is a leading driving financial force. The market value of cryptocurrencies has risen substantially during this time, and one clear thing is that it is having an impact on a wide range of industries, including digital marketing.
Blockchain technology has expanded well beyond its sole use for crypto transactions, with media companies, healthcare services, and transportation and logistics companies using blockchain technology for many different purposes. Blockchain advocates strongly believe that it will help to reduce advertising fraud and better protect customer data and GDPR proceedings. So, how will blockchain affect digital marketing, and what can be expected? Let’s take a look.
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What Is Blockchain?
Blockchain is an advanced database or ledger that is shared amongst computer networks. This technology is best known for its role within cryptocurrency systems to provide a secure record and decentralized record of transactions; however, it is not limited to use for cryptocurrency. There are two main USPs of using blockchain over traditional databases, which are:
- Blockchain databases are transparent – Unlike standard databases or ledgers, with blockchain, multiple independents can hold copies of the database, which can then be cross-referenced with one another for increased accuracy. This way, members of the public can also check databases to verify records.
- Blockchain databases are immutable. After data has been entered into a ledger, it cannot be changed. Should a mistake be made, then a new data item needs to be added to the ledger to reverse the previous entry.
How will blockchain affect digital marketing?
Tracking Keywords
Often, what one person sees when browsing online is unique to them. Results that are seen by other users will be dependent upon their location or which device they are using. As a result, this then poses some difficulty for marketers in keeping track of keyword progress.
Where blockchain technology can be added to searches, then individual keyword rankings can be stored within the blockchain, and location and device data can also be recorded, along with the ranking position. Digital marketers can then use this information to understand what actions are required to improve performance in areas or on devices where they are being outperformed.
Improve Lead Quality
Consumers and users who give you their data are likely to be interested in the services or products that you are offering. By having this data, it is much easier to secure leads and conversions, as the prospect is already there. However, data collection for marketing currently takes a wide and varied approach.
Marketers will collect data on an almost daily basis from several different sources before putting it all together and running campaigns based on this data. This method can be impractical and has room for error, which can then cause campaigns to run based on incorrect information or inconsistent data, which can then affect performance. Blockchain is decentralized and, as such, this allows marketers to go directly to their source, which is the consumer.
Offer Better Transparency For Consumers and Users
Authenticity is hugely important for any brand that wants to appeal to generations such as Gen Z and Millennials, in the same way that supporting leading topics and causes such as fair trade, sustainability, and animal rights is important for brands and businesses. Blockchain offers a level of transparency, which means that businesses can be trusted and, as a result, brands and businesses can benefit from more efficiency and lower costs.
New E-commerce Options
Cryptocurrency enables businesses to accept payments from anywhere in the world; there are no exchange fees or waiting for markets to open. You can simply send and accept funds at any time of day, which is a faster and lower-cost option than other financial services. E-commerce websites can also easily integrate cryptocurrency payment options into their CMS, which can provide a better overall customer experience and open up access to global markets. For digital marketers, making the decision to accept cryptocurrency payments can significantly widen and broaden the target audience for your brand, expanding your revenue margins.
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Regulatory Uncertainty
Although cryptocurrency and blockchain technologies are exciting to integrate, they also come with some risks that need to be considered. These industries are still widely unregulated, and governments and financial bodies are still battling about how best to add protections to the industries that also don’t affect the users. It’s important that, if you do decide to add blockchain or cryptocurrency to your marketing efforts, you keep a close eye on the advancements. As the industry for both crypto and blockchain are unregulated, they bring with them risks of scams and the need for fraud recovery.
Cryptocurrencies such as Ethereum and Bitcoin continue to transform a range of industries, including digital marketing, through things such as privacy guidelines, changing ad formats, and payment integrations. While wide-stream adoption continues, regulatory uncertainty will pose some challenges. However, cryptocurrency does pose several exciting challenges for marketers who are willing to see their strategies evolve along the way.
Photo by Morthy Jameson on Unsplash
