Blockchain in Marketing : For Marketer’s Who Are Futuristic
With cryptocurrencies making ripples in finance newspapers & blogs every minute, the underlying technology automatically is getting its due recognition.
Almost every person abreast with finance and tech today has heard the term ‘blockchain’.
Some already understand its nuances, whereas many wish to learn about it.
It is interesting to note that the application of the same is not limited to cryptocurrencies only.
This technology is absolutely disruptive. It can transform myriad businesses remarkably.
Of all the sectors it can impact, Marketing is a promising one to look out for.
Marketing by nature is an extremely dynamic industry niche. It is constantly susceptive to evolution against the backdrop of changing technology and mindsets of individuals.
Even though the implication of blockchain in marketing would take a reasonable time to seep in, its noteworthy to understand how it could disrupt this segment & unfold growth opportunities for marketers.
This will help in forming a robust futuristic vision for the years to come.
So with that, I’ll begin with the basics and go on to describing ways in which blockchain can disrupt digital marketing
Technical Definition of Blockchain Technology
Blockchain Technology Explained in Layman Terms
If I have to break it down in the simplest way possible, I would say blockchain technology is similar to that of a shared Google Document /DropBox File.
It facilitates real-time storage & sharing of information amongst its huge community of users.
However, a key difference is no information in this system can be modified. The transaction information is stored in the form of blocks. It can be built upon, but not deleted or appended.
The information is simultaneously stored on everyone’s computer who’s using it. This is the cornerstone of its protection feature. If the system was to be hacked to modify the data, it will require simultaneous modification across all systems which is HUGE. This makes it virtually impossible.
It is not stored on any single destination under the control of a single entity & this is what exactly adds feathers to its security.
The blockchain is outside the regulatory ambit of any government or organization. This eliminates the role of an intermediary for its users.
Currently, the most popular application of blockchain is cryptocurrency. However, this digital gold can be useful in other segments as well.
With that, I will come to the relevance of blockchain for marketers.
Blockchain in Marketing
Before I begin, I will draw attention to one basic premise of the operation of blockchain technology.
Here are the disruptions blockchain can fuel in the marketing segment:
Declining Role Of Mediator Companies – Increased ROI
One of the simplest ways to raise profits is to cut down cost in any field. Marketing is no exception to this.
With blockchain, it will be possible to eliminate the cost of middlemen in online advertising.
The most popular forms of advertising today include Google, Facebook, Linked Advertisements to name a few. These companies act as middlemen between those who want to display ads versus those who would be their targets.
The agreement to advertise is via these companies.
In order to display promotions, there will be no need to go through a Google or a Facebook because it can be directly done by those who want to show taking permission of those who they would like to show. There will be a clear scope of direct communication.
Access to Superior Data
In the present scenario, marketers depend on data of third parties. No single source may be exhaustive in providing all kinds of information.
With blockchain, the information is provided by the customer himself. In that situation, the targeting is possible to the neatest extent. That definitely holds key to better outcomes out of advertising budgets.
Increased Transparency Building Public Trust
Since the data in blockchain cannot be modified, it is definitely most likely to be authentic and raw as compared to other data sources.
This increases its reliability multifold.
The application of the same can be reaped by companies by sharing information of importance with customers.
If they are given access to authentic information that proves the company is doing things ethical and right, they automatically demand the consumer’s trust.
Companies can deploy the same sharing information of their procedures & earn trust & loyalty.
Getting access to the entire supply chain movement of the product, a consumer can be empowered to learn if the good is real or counterfeit.
Another good way to achieve it is to make public its expenditure on social responsibility measures. This projects the company in a good light and removes scope of doubt in its CSR numbers published.
Branding Benefits As Progressive Company
Whichever companies ride this initial growth wave of blockchain and cryptocurrency are sure to make it in public memory.
Incorporating payment mechanisms empowered by cryptocurrency can project the adopting companies as futuristic besides its security advantages.
It will give instant recognition and marketing coverage by leading publications.
For instance, a cashless cafe accepting payments in Bitcoins is making it viral across the internet.
This spike in brand value powered by the move is sure to last.
With that, I can safely conclude that implications of blockchain in marketing are an interesting area to explore. The possibilities are endless. It can be the next big thing in the field. It’s a good idea to keep it under the radar and figure out your plan by the time mass adoption steps in.