Thanks to the blockchain, ideas that were just mere theories are being replaced by valid and proven solutions that solve problems related to transparency, efficiency and the fight against fraud. For example, identity identification applications are becoming more and more popular. In this article we explain different applications of the blockchain in the marketing industry.
Blockchain applications in the marketing industry
For those of you who have not just mastered the world of blockchain, first we are going to define what it consists of. In simple terms, we could say that the blockchain is a decentralized database . That is, not controlled by a single central unit but by a group of users. The data you collect in the system is encrypted and cannot be deleted or modified.
In the commercial transactions of the blockchain system, the financial information and the different records of the user are permanent and cannot be changed. The blockchain is a transparent and secure tool for industries such as marketing.
Although it may be a relatively new technology, the world around us is already changing. Marketers are looking forward to seeing how the blockchain will impact and optimize their work.The blockchain development company is building a direct data exchange between consumers and brands to emphasize their relationships. This is crucial because platforms like Facebook generally collect data by tracking user activity, but the resulting information is of poor quality. There is also negative consumer confidence with this type of surveillance.
Let’s take a closer look at the applications of blockchain in the marketing industry:
A more democratic marketing
The blockchain returns to consumers some of the power that was previously in the hands of social media platforms and other companies that collect consumer data. For example, thanks to the blockchain, users can choose to view ads in exchange for a digital currency or a token. It is a way of sharing rewards. In other words, consumers may be directly compensated for viewing advertisements and for transferring their data.
On the other hand, among the applications of the blockchain in marketing is a great improvement in terms of privacy. Privacy is an issue that greatly concerns users when buying online or using an online technological service. Customers are concerned about the anonymity and confidentiality of their transactions. These concerns are due to the possibility of incorrectly obtaining, misusing and disclosing your personal information . Privacy concerns have increased since cookies on web pages capture personal information and store it in information systems.
Second, the blockchain can create transparency around where products have been sourced or manufactured. For example, you can indicate if the product is truly organic or if the farmer in the supply chain has received fair payment for his work. Auditing supply chains becomes much easier and consumers can be more confident that product labels are telling the truth.
The Internet is also an efficient communication tool that allows companies to interact directly with consumers and keep them informed about their latest products, services and company developments. Although the importance of having an Internet presence is indisputable, the reputation of the marketing and advertising industry has been plagued with fraud, scandals and deceptive campaigns.
The click fraud is an intentional act in which an illegitimate or deplete the advertising budget of a competitor individual or organization tries to use automated scripts, software or employing individuals to mimic legitimate web users to click on digital advertising.
Elimination of intermediaries
The prevalence of social media has created the need for businesses to reach customers through messaging platforms such as Facebook, Twitter, and YouTube . Rather than generating revenue through customer payments for content and services, these platforms rely on revenue through data and targeted ads.
In general, organizations are highly dependent on intermediaries to meet the needs of their potential customers. They seek to attract the attention of consumers, but usually depend on their communication channels, since they provide a large amount of information about the demand for goods and services.
On the other hand, consumers may not like the monetization of their data by digital intermediaries. This middle ground approach often prevents consumers from reaping the benefits of interacting directly with brands , such as co-creation, more customer-centric support, or more personalization.
For example, imagine that a retailer routinely pays 3% payment processing to credit card companies or to other online platforms that charge listing fees or sales commissions. With blockchain technology, brands can limit or abolish costs and eliminate non-value-adding activities at the brokerage layer.
In this sense, blockchain applications in marketing can be a conducive tool that allows brands and consumers to avoid intermediation and forge stronger relationships. It allows companies to expand their advertising campaigns, improve their customer targeting capabilities and service responsiveness. Its ubiquitous and interactive features allow marketers to efficiently communicate their business content and reduce costs by avoiding middlemen.
Without intermediaries, the cost of digital advertising would be dramatically reduced for marketing teams. Also, the ad metrics would be more accurate by not relying on a third party. Going through one or more intermediaries can make it difficult to track ads. However, with the blockchain marketers can easily access this information.
Consequently, this will also make calculating the ROI of ads much easier for marketing teams.
Check the data
Another application of the blockchain in the marketing industry is data verification. The Blockchain development services can collect, verify, store and update databases automatically with minimal human intervention . Experts believe this will transform the approach to customer insights. It is the perfect platform to generate ideas because it prioritizes data-driven marketing.
On the other hand, data can be linked to a hyper-personalized information generation segment for a much more effective targeting of campaigns.
Information security can be seen as the center of information systems, both at a technological and organizational level. This implies that ensuring a high level of preventive measures and security in transactions is a crucial differentiator for many companies. In the digital world, secure and well-communicated product delivery is a crucial success factor in building brand trust.
PERCEIVED THREATS ONLINE
The main reasons for this negative perception are:
- The possibility of data loss or theft
- Identity Theft
- Credit card information theft
- Content manipulation
- Unauthorized access to accounts
- Database attacks
- Patent and copyright infringements
Before incorporating information security into the marketing narrative, brands must build a technology infrastructure that addresses security loopholes and improves consumer confidence in the digital marketing environment.
In this sense, the emergence of blockchain technology can benefit both brands and consumers, guaranteeing an unprecedented level of security. The power of blockchain security is based on its distributed and decentralized data storage. Additionally, the use of various security mechanisms, such as asymmetric encryption, digital signatures, and access control can ensure proper storage, transmission, and retrieval of large amounts of consumer information.
Finally, among the blockchain applications in marketing is the generation of loyalty. In an increasingly competitive market environment, brands are striving to ensure that consumers remain loyal to their products and services. To improve consumer retention, brands have been systematically collecting and storing their customer data, primarily through loyalty programs. These tools serve to increase brand loyalty, reduce price sensitivity, encourage word of mouth, and expand your customer base.
Blockchain technology has the potential to reshape the way loyalty programs are designed and communicated to consumers. In a blockchain-based marketing ecosystem, loyalty programs are fully integrated. What did you think of this article about blockchain applications in marketing ? Leave your comments and share!
And if you are interested in the world of blockchain, take the Master in Blockchain and Fintech . You will learn, among other things, the operation of the blockchain as distributed systems and understand the architecture and the fundamental algorithms on which they are based. We will wait for you!