Blockchain Marketing: The Basics

Blockchain, defined as “a digital chain of blocks that keeps a public ledger of transactions”, scores high on the agenda of marketers who want to keep up with the latest digital marketing trends. At the moment, blockchain is mostly used in cryptocurrency trade. However, blockchain technology is increasingly becoming applicable to digital marketing. One of its main applications is securing a relationship between brands and their customers by allowing them to better target advertisements without the need to disclose too much personal data.    

Consumers are exposed to a continuous flow of advertising. Blockchain could make the advertising experience even more direct. “People can opt-in to view ads in exchange for digital currency or token,” explains Damien Martin, Marketing Executive at Shufti Pro, a provider of digital identity verification solutions. This can help avoid ad fatigue as consumers will be directly asking to view ads. This will make them more in control of the advertising content they are exposed to. 

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One of the main benefits of blockchain for businesses is the ability to get more accurate leads as customers themselves will provide their data. Customers will be incentivized to do so by getting compensation such as discounts or tokens. Their decision to opt in will help businesses gather more accurate data. This in turn will increase the effectiveness of marketing campaigns.  

Blockchain technology ensures data security through cryptographic mechanisms. To ensure information security in their marketing campaigns, businesses need to develop a strong tech infrastructure. If blockchain is part of this infrastructure, it strengthens data security through its “decentralized and distributed data storage”. Data security is further strengthened by decentralizing a business ecosystem through synchronizing and integrating marketing-related information among network members.

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Brands have been heavily investing in influencer marketing to extend the reach of their messages. Despite its significant promotional potential, influencer marketing gets a bad rep because of such problems as difficulties in tracking return on investment (ROI), poor transparency or fake followers. These problems could be overcome by blockchain-based smart contracts. They could facilitate the payout upon the completion of certain actions or the delivery of desired results. In addition, blockchain technology could be used to verify the performance and legitimacy of influencers.

It was estimated that out of $332.25 billion spent on digital advertising in 2019 $42 billion would be lost because of ad fraud. Advertisers have been losing a lot of money in various types of ad fraud such as fraudulent traffic, domain spoofing or malvertising, to name a few. One of the possible solutions to the problem is bypassing the middlemen, keeping only advertisers, publishers and end users as well as using blockchain-based platforms which would ensure better transparency.  

Despite the monitoring function provided by search engine operators, quantifying the results of marketing campaigns has not always been straightforward. It is also tricky to track organic search engine optimization (SEO) results. Blockchain-based tracking software could be a possible solution to such problems. The ledger could give precise numbers of each keyword’s performance and track it across a period of time. Data with such a degree of accuracy would give a solid basis for data-driven marketing campaigns. 

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References:  Werner Geyser, | James Howell, | Indrajeet Deshpande, | Jessica Wong,