Blockchain – The New Digital Marketing Disruptor
In the park of marketing, there are many players who keep changing the variables on a continuous basis. While businesses have been busy considering the overall impact of AI, VR, AR, analytics and mobile trends, a new mammoth has risen from the ashes – Blockchain.
Although most enterprises in the financial sector have taken to it seriously, it affects the digital marketing verticals in ways that many are yet to fathom. In simple words, blockchain facilitates consumer-to-consumer transactions, eliminating the need for any government or third-party mediators.
It may be the key to giving the power back to users, thus rendering the endless influx of data on which the marketing world now rests rather ineffective. The concept has further given rise to a new term, namely, Blockchain Marketing. Using the core principles of blockchain, that are, transparency, security and accessibility, it creates a new environment where the users shall willingly own and sell their data to the marketers and advertisers of the world.
Here are some ways that blockchain is changing the face of marketing irreversibly.
Making it Democratic
One of the most commonly-accepted notions about digital marketing was the data capture that happened at every consumer touchpoint. Whether it be signing up for a social media platform like Facebook or giving in the details at a Walmart checkout, phone number, email addresses, and full names are easily exchangeable without any payment. With the transparency that blockchain brings to the table, companies will have to start paying the customers who share their private data. By essentially placing a monetary value on the audience’s attention, the concept gives the users a choice to decentralize from the network and opt-out of the system.
Knowing the Origins
No matter where you buy your products from, there is no saying how they came into the picture. Yes, environmentally conscious brands do exist who are trying to tip the scales in favour of the ones that make the right choices. But, otherwise, be it fast fashion or your FMCG products, the manufacturing process is usually unknown. Blockchain creates a cascading effect on the system that can be traced back to the original producers. It lends further power to the individuals who care about the quality of the product they are buying and practices that have led to its production.
Maximizing Reach with Minimal Spending
In the current digital world, many businesses rely on being the middlemen between the spenders and the publishers. In fact, ads have gained such a bad reputation that anyone who is attempting to do it on their own is marked down as a naïve spendthrift. As blockchain comes into the picture, it drives a clear path from the payer to the receiver. By cutting out the intermediaries, one could potentially half their marketing budgets and redirect crucial investments towards business growth. Nevertheless, this also means that a whole generation of service providers who verify ad metrics for a living shall be out on the street.
The cumulative effect of blockchain and everything it entails for the digital marketing arena is yet to be explored. It could either overhaul entire systems and create its own niche or add to the on-going trends, further benefitting the consumers and businesses in terms of experience and profits, respectively. As the landscape changes by the minute, the early adopters of the blockchain practice shall surely have the lead over those who are late to the party. Technology shall take centre stage from this moment on, and marketers will need to adjust their spotlights accordingly.