Blockchain and crypto are now such buzzwords that nearly everyone has heard of. According to experts, the blockchain market is likely to rise significantly by 2025 – to almost $40 million! This revolutionary technology that enables cryptocurrencies makes a significant difference in the digital marketing world. Using blockchain in digital marketing has the potential to boost brands’ relationships with their clients and brings many other benefits, such as improved transparency and increased security. While blockchain is primarily associated with cryptocurrencies, the technology’s applications are far-reaching, and many believe it will create a lot of new opportunities across businesses. Its future possibilities are enormous, leading to a trustworthy internet with secure and transparent transactions.
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Understanding blockchain technology
A blockchain is a database shared between multiple network connections. This ledger stores information digitally, ensuring more secure records than other databases. Since computers on the blockchain are linked to each other, acting as one, hacking the system is incredibly challenging. The information on the blockchain isn’t traced to a location, as it happens with data stored in a bank. Plus, since the database isn’t controlled by a singular entity, not even the most skilled hacker could crack it.
Blockchains weren’t such a household name in the past, but their status changed once cryptocurrencies became widely popular. Crypto exchanges enable investors to buy bitcoin p2p, ensuring speed of the transactions and zero fees. As these digital assets become prominent, blockchain is also getting recognized for its vast potential to revolutionize different industries, including healthcare, supply chain management, real estate, voting and logistics.
How blockchain can revolutionize marketing
The marketing space has become very competitive, so organizations must work harder than ever to reach customers. They also need the right strategies to help them communicate their products and services value. Considering that the internet is getting into its third era – that of a decentralized web- it’s only evident that organizations need to implement blockchain technology that focuses on increased transparency, privacy and security. In fact, consumers have become increasingly concerned regarding the privacy of their data, but fortunately, blockchain can change that.
Due to its disruptive nature, the technology has improved productivity in different sectors. It can also change how digital marketers handle information, allowing them to prevent fraud and quantify their marketing campaign results. Additionally, blockchain also boosts transparency, which consumers have sought for a long time. Let’s further discuss how blockchain can influence digital marketing.
It combats data fraud
Communication allows customers to stay updated on the latest services and products; however, due to fraud campaigns, online businesses can quickly come under question. Click fraud is a major hindrance in online advertising – in fact, in 2022 alone, the cost of a click fraud was around $44 billion! Thus, implementing blockchain is crucial to combat this issue, as it would encourage honesty and integrity in the marketing sector. The environment would be a collaborative one, boosting supervision and control over publishers.
It boosts trust and transparency
Blockchain creates a transparent ecosystem, which helps increase customer trust. This is especially important in the context of greenwashing, as the ledger records the heritage of products, providing consumers with detailed information regarding a particular product. The technology helps confirm claims of organic products, thus benefiting brands and marketers seeking to place advertisements.
It helps monitor campaigns’ success
Marketers must track keywords to evaluate whether their campaigns are successful. However, their monitoring options aren’t efficient when it comes to quantifying the results. For instance, marketers can struggle to track organic SEO results, as it’s challenging to separate keyword results on distinct devices.
But this issue can be solved by using efficient tracking software and implementing blockchain. That way, marketers would gain insight into each keyword’s performance and monitor it over a longer period. This data is valuable not only for reports but also for data-driven campaigns.
It increases security
Since blockchain is based on a cryptographic mechanism, it offers increased security. This is why this technology can benefit marketing by reducing risks surrounding campaigns. But adding information security isn’t the first element businesses should focus on. Firstly, they should strive to develop a solid technological infrastructure that could help bridge current gaps and improve customer trust.
Blockchain technology provides unique security mechanisms, like asymmetric encryption, access control and digital signatures. All these mechanisms can safeguard transferring, storing and retrieving of consumer information. Moreover, the technology enables integration and synchronization of the marketing data among network members, such as:
- Pricing policies;
- Market research;
- Marketing plans;
- Product listings.
It reduces privacy concerns
The adoption of blockchain isn’t only limited to building trust and ensuring transparency and security. It also helps reduce privacy concerns, which is a critical issue that influences customers’ decisions regarding the use of a particular tech service. Customers want their data to remain confidential during transactions, and blockchain can meet that need because it ensures anonymity, not exposing individuals’ real identities.
Even if the whole network can verify transactions, all other details and information about the parties remain unknown. Using blockchain in digital marketing also highlights to customers that they can utilize transactional history to gain better control over PII.
Making digital marketing better with blockchain technology
Over the years, leading marketers have focused on measurable results, and monitoring campaign performance is one reason digital marketing has grown exponentially. Blockchain technology has the potential to bring more advantages to this because it ensures campaign results can’t be altered. The massive adoption of blockchain technology translates into a revolutionary era for marketing, where results are more accurate, and marketers can prove their campaigns’ value. Due to its decentralized feature, blockchain is ideal for marketing, ensuring security and enabling consumers to take control of their data.
Blockchain applications in marketing can also help fight against click fraud and optimize the costs of campaigns. Additionally, the technology introduces fruitful changes in how brands and customers interact.
Undoubtedly, blockchain is very powerful, as it offers endless opportunities to marketers willing to embrace this technology.