If you’re an insider in the world of digital marketing, you’ve heard the term blockchain at least once. Some of us understand it while others might still not know what it really means. However, it is very important to stay up to date and understand why it is the future of digital marketing.
What exactly is blockchain?
Simply put, blockchain is a unique way of storing important information in a very secure way. You can look at it as a line of puzzle pieces lined together, but each of them is different. If one is messed with, the rest of them would have to be modified as well. Each piece of this puzzle line represents a block of data that is part of a huge chain, thus the term blockchain.
One can add as much information as needed and the whole chain will be automatically updated to match the new info. But the reason why this system is known as the most secure way to store data is that the information has to be verified and confirmed . This is done by consensus within nodes before a new block is added. This makes it extremely hard to tamper with the information.
What are some benefits of blockchain in the advertising and business world?
Increased security in transactions
We’ve all heard of cases where people are scammed while online shopping, or where their personal information is stolen. Luckily, blockchain is making its way into the business world to avoid this from happening by having verified transactions.
Earn more trust from consumers
With the growing amount of small businesses, people have more options than ever and are receiving an endless number of ads. However, no matter how many ads of the same company they see, they probably won’t trust it at first. By using blockchain, businesses can earn trust by showing every step of the supply chain their products go through. This makes consumers feel safe once they have more information available.
Different forms of payment
Since cryptocurrencies such as Bitcoin use blockchain, it is easy for companies to accept them as a form of payment. This allows them to have complete trust and transparency, as well as an easier way for consumers to pay. This way, both companies and customers avoid the hassle of dealing with banking or authentication issues.
No more fake claims
By using blockchain, companies will be forced to stop using false advertising practices. Since consumers will be able to access the product’s supply chain in a detailed manner, companies cannot label their products with features they do not have. This includes categories such as gluten-free, vegan, dairy-free, organic, made in Canada, cruelty-free, among others.
How is blockchain impacting digital marketing?
As we can see, blockchain system is here to transform the way digital marketers perform their practices. This includes having better quality consumer data and ways to use it regarding how they approach consumers in terms of advertising.
In addition to this, digital marketers can benefit from the usage of blockchain regarding online tools that are specific to advertising and the way companies spend their money in it. The most important tool to mention is keyword tracking. As all digital marketers know, it can become tedious because of the constant changes of search engine algorithms. With blockchain, they can now acquire better data in this sense, since the system can provide accurate statistics, as well as track keywords among different devices.
This is only the beginning of a whole transformation that awaits the digital marketing world, and it is likely that with the development of the system, more ways of using blockchain to the advantage of digital marketing are to come up. It is safe to say that the introduction of said system in the industry will save companies huge amounts of money by optimizing their performance, and cutting back on errors.
Fernandez, K. 7 Ways Blockchain Will Improve Digital Marketing and Advertising. https://www.commpro.biz/7-ways-blockchain-will-improve-digital-marketing-and-advertising/
Rodeck, D., & Schmidt, J. (2022). What Is Blockchain? https://www.forbes.com/advisor/investing/what-is-blockchain/
Zamagna, R. (2021). The Future of Digital Marketing Belongs to Blockchain Technology: Part 2 – The Power of Transparency. https://www.linkedin.com/pulse/future-digital-marketing-belongs-blockchain-part-2-power-zamagna/?trackingId=bkhDdWxJRReJ%2FFYsaPbq1A%3D%3D