18 April, 2018
Blockchain technology, with its ability to transmit immutable, secure information via distributed ledger, has great significance in the world of digital marketing. Marketers can use blockchain to streamline their ad campaigns, build trust with consumers, and eliminate middlemen in order to maximize profits.
Transparency in product information, ad delivery and the supply chain
In the current social climate of accountability and “fact checking,” it’s increasingly important for today’s consumer to be able to believe in a brand’s image and to support ethical practices through their purchasing habits. Brands can use blockchain to provide transparency about their products and the manufacturing process, how their ads reach their target audience, and what transpires from the conception of a product to its packaged existence on the store shelf. Brands and companies that pride themselves on environmental sustainability or fair trade can be open about their product’s carbon footprint and manufacturing conditions—with total verifiability on the blockchain.
More accurate and valuable targeting
Digital marketing requires massive amounts of information about users and their interests, purchasing habits and browsing patterns. Marketers measure engagement and ad delivery to create effective ad campaigns and optimize ad placement and performance. Google AdWords, the most vastly used ad display network, uses various methods to weed out invalid clicks, for instance. Blockchain technology could take this verification even further for more specific, accurate and valuable targeting by using mining machines to identify ads that are delivered to browsers that falsely report as active.
Removing the middleman
In addition to validating ad delivery, blockchain can cut out middlemen like Google AdWords and Facebook advertising. Instead of Google or Facebook being paid for advertising, the consumer could be paid in microtransactions for willingly viewing specific ads.
Consumers control their own information
Customer data is one of the most important tools used by digital marketers for targeting and analysis. If trust is built between advertiser and consumer, the possibilities around sharing information readily and willingly are endless. Instead of consumers feeling like their personal information is being collected covertly, they can choose exactly what, how, and when their identity and activities are shared. Blockchain can even allow consumers to put a price on their information and attention.
Featured image via Pixabay.