The expansion of blockchain technology beyond recording crypto transactions is probably the biggest takeaway from the beginning of this decade. The technology is of substantial importance across major industries, including healthcare, finance, supply chain, gaming, and real estate. More than 65 big and small industries are benefiting from blockchain adoption in some way or another. Blockchain in digital marketing is still a new application to think of for many. But with the amount of data processing and exchange involved in digital marketing, the technology can truly transform the sector for good.
The mainstreaming of e-commerce and the emergence of modern platforms at the same time has disrupted the traditional marketing industry, leaving behind a huge void. Interest-based marketing is the go-to strategy for every marketer amidst the rising competition in the B2C market. Interest-based marketing translates into companies having access to user data with or without their permission. Thus, blockchain has a huge role to play in changing how companies use data and overall, how they perceive marketing in the era of e-commerce.
Web3.0 Set To Transform The Internet
Internet is at the heart of all B2C marketing strategies. At present, we have traditional computing systems that use client-server architecture for data storage. This effectively means that every computation or data-based action is stored in a single server with excessive centralization. Most importantly, internet providers have complete control over the data.
Blockchain disrupts this model as a blockchain architecture requires hundreds if not thousands of nodes for efficient operation. A blockchain architecture enables complete decentralization of data flow and anyone who is a part of the network can access the data. As a result, users have visibility over who is accessing their data and what for. Blockchain validates the principle of Web 3.0, which intends to put the user in control of their data. Blockchain stands to preserve and democratize the use of the most important commodity in digital marketing – user data. Also, any changes done to a record are immutable hence the possibilities of fraud or mismanagement are minimized.
Reduced Advertising Fraud With Blockchain In Marketing
Digital ad fraud is a major headache for brands that lose thousands of dollars due to bots and fake users. In fact, 69% of brands spending over $1 million a month in ads agreed to have lost at least 20% of their digital ad fraud. The easy way out in such a scenario is to reduce the overall ad spending. However, Uber saw no change in conversions even after cutting $100 million in ad spending. So how do brands get rid of this problem?
Blockchain is a proven technology when it comes to user verification. Using distributed ledger technology, advertisers can easily identify the source of fraudsters and wasteful clicks, to blacklist them from further engagement. While mass adoption will be a challenge, brands like Toyota using blockchain to identify fraudulent traffic in digital marketing is definitely a good start.
Safeguarding Data Privacy
The global average cost of a data breach rose 2.6% from $4.24 million in 2021 to $4.34 million in 2022. This is the highest margin of lost funds in two decades. With a massive amount of data being transported on a daily basis, safeguarding user data is another priority for brands and businesses. As inter-connected devices and cloud storage become more popular, the risk is only going to increase.
Security being an integral part of blockchain architecture, it is bound to make a positive impact. Blockchain-powered smart contracts verify, record and encrypt all transactions to provide greater security. Online brands can leverage smart contracts to safeguard the data and privacy of their users, establishing greater trust and transparency.
Four Ways Blockchain Will Transform Digital Marketing
- Keyword Tracking: Tracking of keywords is critical to classification for target-based ads. However, it is extremely difficult for brands to track these keywords. By integrating blockchain into search, brands can store individual page rankings on the ledger. Vital metrics like location and device usage could be stored with ranking positions to analyze volume and performance. With access to keywords and other related metrics, marketers can analyze their actions to identify areas with scope for improvement.
- Battling Ad Fraud: Advertisers could lose up to $100 billion by 2023 due to digital ad fraud. The risk is increasing and advertisers know it well. As mentioned earlier, advertisers can leverage blockchain-powered smart contracts to identify and blacklist fraudulent clicks. Using the technology, advertisers can ensure they pay only for valid views and publishers. Consequently, it will also improve speed and accuracy.
- Better Leads: At present, marketers have to dig in data from thousands of clients and organize it all together to run targeted campaigns. Since marketers operate in a largely centralized environment, data management is extremely challenging. However, since blockchain is decentralized, marketers can go to the source of the data to identify vital consumer metrics. There are numerous web3 brands using the technology for lead conversion. Going forward, lead conversions could be one of the biggest pillars of blockchain in digital marketing.
- Increased Transparency: Modern-day consumers are very particular about the brands they associate with. Be it sustainable practices or transparency, there are several factors that play a critical role in retaining customers. Gen Z and Millennials are very particular about factors like whether the brand follows sustainability standards and environment-friendly practices. Since blockchain offers transparency and immutability, it can play a pivotal role in offering better transparency to customers.
Conclusion
With blockchain in digital marketing, marketers can reduce costs, improve lead generation and safeguard user data at the same time. Mass adoption of the technology is critical to its emergence as an alternative to Google Adsense.
Users are fed up with misleading ads and lengthy processes due to the involvement of intermediaries. With companies like Brave already jumping on the bandwagon, Blockchain is all set to bring a necessary revolution in digital marketing.