How Blockchain Can Boost Marketing Strategies

How Blockchain Can Boost Marketing Strategies

Marketing

How Blockchain Can Boost Marketing Strategies

The blockchain is a technology that has blossomed at an incredible pace. When Bitcoin was launched, blockchain technology was restricted to cryptocurrencies. Today, more industries are exploring the benefits that come with this technology. Marketing is one of the industries that is benefiting massively from blockchain. This technology is solving major hiccups that have been facing the marketing industry.

Moreover, every business wants to establish a strong online presence in today’s highly competitive digital market. As such, businesses want to ensure that they are well prepared with their marketing strategies. This is where blockchain is coming in handy as a technology that can change the marketing and advertising industry. To know more about Blockchain, one can always refer to several online blockchain tutorials online and get a good grip on it. Read on for more details on how blockchain can boost marketing.

Understanding Blockchain

Blockchain is comparable to a database. Blockchain comprises of multiple blocks that are linked to each other to form a chain. Each block has information stored in it. The information stored in these blocks can be shared with desired users in a peer-to-peer (P2P) network.

The blockchain is secured using cryptographic technologies to prevent unauthorized people from tampering with the data. The data stored in the blocks follow a set of an algorithm based on consensus. This means that once data is stored by mutual agreement, no users are allowed to edit, delete or add data in the blocks.

Whenever a transaction is made, be it contractual agreements or exchange of information or money, the transaction is done as a block. The block has to be validated by all users within the P2P network and upon validation, a permanent digital record is established. Once done, the block is added to the chain.

The technology behind blockchain has made it fully auditable and transparent. It does not have a central point of authority and also lacks a single point of failure or control. Thus, transactions made using this technology are fully secure and transparent.

Blockchain and the Marketing Industry

Blockchain technology has changed today’s marketing industry. Here are some ways through which blockchain can boost your marketing strategies:

1. Targeting and Engaging the Right Audience

When it comes to online advertising, the majority of advertisers hardly manage to target the right consumers despite having their behavioral data. Most marketers have lots of consumer data and they still pay exorbitant fees to middlemen involved in advertising. Despite doing all this, they are still unable to engage and target the right audience.

Blockchain comes in handy as an effective means of getting the right audience to see an advert. Blockchain creates a decentralized search engine where advertisers easily reach their target audience. Through blockchain, advertisers can also compensate target customers using tokens when they provide their personal data to advertisers. Every time a person clicks on an advert, they get paid. People only see the ads they indicate interest in, such that only the right audience is targeted and engaged.

2. Preventing Ad Fraud

Ad fraud is increasingly becoming a serious issue for marketers and advertisers. Paying for fake impressions and clicks is a common trend today. Therefore, ad fraud distorts analytical data and this affects marketing strategies and decisions.

Blockchain technology comes in to display clicks in advertising platforms in real time. It also assists marketers in renting out their advertising platforms and attracting quality traffic. This way, clicks are authenticated, thereby preventing ad fraud.

3. Creating Reward Systems and Loyalty Programs

Customers never forget when they are made to feel special. Loyalty programs work well with sales for they make customers feel special. Blockchain can be used to create an unforgettable experience for customers. Gift cards can be attached to the blockchain, thereby creating a safe platform for maintaining and issuing loyalty programs and gift cards.

If customers accumulate gift cards and are unable to redeem or use them, they will have a negative experience about the brand. With blockchain, gift cards can be converted into digital wallets or coins, making it easier for customers to use or redeem them. Moreover, different gift cards and coupons can be combined and redeemed in one transaction. This concept can save marketers thousands of dollars in their marketing strategies.

4. Crowdsourcing and Data Collection

Good data is extremely powerful to marketers. Despite having dozens of marketing tools and trying out different marketing strategies, most marketers are still unable to get accurate and quality customer data. It is only customers themselves who can provide accurate data.

But how would a marketer get customers to share their data? This is where crowdsourcing and blockchain come in handy as a way of encouraging customers to share their data. In return, they get some compensation, making it a win-win situation for both parties. This way, the data obtained is highly relevant and authentic.

5. Decentralizing E-Commerce

The blockchain is decentralizing how consumers buy things online. The technology can be used by marketers to create decentralized marketplaces where traders can sell their products or services directly to consumers without the need to use expensive third-party platforms.

6. Influencer marketing

Consumers tend to believe what other consumers say about a brand rather than what a marketer asserts. The blockchain is making it possible to take advantage of influencer marketing. Through blockchain technology, marketers can be able to authenticate the identity of influencers, validate their followers and get a guarantee on their investment.

7. Eliminating the Need for Middlemen

Marketing involves finances and this means transacting through banks. Blockchain technology comes with digital wallets and eliminates the need to carry out transactions through banks. Blockchain ensures that transactions run smoothly and reduces the costs involved in transacting through banks that act as middlemen.

As competition in the digital world continues to grow, marketers have to look for innovating ways to boost their marketing strategies. Blockchain technology has proven to be a great tool that can boost marketing strategies. Even though this technology is still new in the marketing world, it is already becoming a reliable alternative to other marketing tools such as Google ad banners and pay-per-click. Extracting its full potential can surely benefit markets by creating a transparent, authentic and secure customer experience.

Image Credit: Pixabay/mmi9    

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