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How Blockchain is Reinventing Digital Marketing?

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Darshit Parmar
Darshit Parmar is a dedicated eCommerce consultant at M-Connect Media, a sales-oriented e-business development company.
Today digital marketing is a multi-billion-dollar industry. According to the market research company, digital marketing expenditure in the entire US are on pace to reach levels near $120 billion till the end of 2021.

Digital giants like Google, Amazon, Facebook and many others are collecting infinite information about consumers. Although the tech giants didn’t leave any stone unturned to reach the enormous number of consumers, these ads will not reach the expected number of customers and failed to increase the revenue of businesses.

It is estimated that nearly 50% of all the ad traffic is being created by bots. The businesses are paying the massive amount of money to reach their potential customers, but this doesn’t give them any guarantee that those advertisements will increase their sales and ultimately the revenue.With the help of Blockchain, one can change businesses’ abilities to target their customer individually in a direct way. There has been the much technological advancement in the blockchain, smart contracts, and many others. These latest technologies are changing the way the digital marketing industry to advertise their brands.

How Is Blockchain Reinventing Digital Marketing?

We always think that blockchain is only associated with the payment and financial systems. Yes, it is absolutely true that the blockchain technology is helpful to the financial industries in many ways. But the blockchain technology has also generated an Augmented Reality platform that integrates cryptocurrency and rewards users for viewing AR experiences. There are many innovations that blockchain can provide to the digital marketing industry, here we are sharing some of them.

Direct-targeting to Consumer

The blockchain technology has taken the advertisement by storm. With the help of this technology, the marketers can enable information to be stored and distributed without changed or copied. As it is a decentralized system, the data and each and every information of the consumer will be highly secured. With the help of this technology, the digital marketers will be going to overhaul the online advertising and they will negate the requirement for middlemen.

Nowadays, the digital marketing businesses are running on Google and Facebook ads. The businesses are investing high amount for conducting advertising campaigns for both the platforms. On the other note, Blockchain companies like BitClave are diverting their attention to provide search data privacy to the tech giants giving an extra-edge to their competition as well as full control over their data.

BitClave runs on a search engine that uses Ethereum blockchain technology. It prevents the need for ad service agency and creating a direct connection between the consumers and businesses. This is also considered as the biggest milestone of blockchain technology. Thus, it eliminates the middlemen in all the transactions.

When the users conduct any search, they can choose the amount of data they want to be released to advertise their products. Unlike the other digital marketing companies, the user can be compensated for their data. Thus instead of any middlemen, the user can directly sell it directly to the company.

Cross-promotional B2B contracts

There are smart contracts which help you exchange the money, share information and anything valuable in a conflict-free transparent manner. It helps you avoid additional middlemen like lawyers and many others. These are the computer programmed contracts which operate on blockchain technology. They are designed to facilitate, execute and verify the terms of any contracts that can only be replaced by a brand new contract. These smart contracts are playing an important role in B2B cross-promotional marketing.

Today’s the era of influencers and bloggers who are the essential keys to some of the biggest social media platforms like YouTube, Instagram, and many others. These are the platforms that are very much important to cultivate the personal brands. Digital marketing with the group of influencers is more beneficial, but it has challenges as there is no third party regulations and terms of an agreement. Each professional associated with the influencer marketing decides his or her own payout.

Here comes the role of smart contracts which automatically enforce obligations from all the parties involved. The smart contracts ensure the payments are made only after meeting the desired standard of work. If a blogger never publishes an article or didn’t post anything on social media about the brand, the smart contract won’t release the blogger's payment unless he has done his job. Thus, the smart contracts ensure to meet each contractual milestone in order to execute the next step of the process.

Blockchain has laid its footsteps in the field of E-commerce. The revolution of blockchain has resulted in the formation of E-commerce blockchain model. Do you wonder how customers shop using bitcoins on E-commerce platform? Are you thinking to integrate Bitcoin Payment Gateway in your E-commerce store? Read more to get an insight!

Roger Haenni who is the co-founder of the blockchain based storage company stated that the digital marketing is fueling the engine of global e-commerce. It should rely on the most advanced secure backbone like blockchain technology. He added that the blockchain technology enables a new class of services with smart contracts. It helps the businesses and brands to focus on commerce and protect themselves.

Transparency in contracts and with consumers

The other ways of using blockchain technology are to show consumers whom they are selling their data to. As the information cannot be changed and copied, the blockchain based companies can easily store their data and can be sure that their information will not tamper with any sort of malpractice.

Maintaining Privacy and Security

Blockstack is another company which is reinventing the ways of digital marketing with the help of blockchain technology. It is an open source project and public benefit corporation which enable the users to access websites while maintaining their security and privacy. This service allows users the ability to explicit their permission to their data. The information is then directly transferred to the encrypted device without the need for third-party data collection services. The Blockstack consumers are able to access the content based on their information without viewing any unwanted advertisement. Thus, it eliminates the consumer’s identity from the purchasing journey and the private details are no longer freely available to the digital marketing industry for leads. This dries up the elusive source of lead generation.

Crowdsourcing Data Collection

There are companies that enabling consumers to sell their personal data in exchange for tokens. There are information exchange platforms such as Snovio which provides people with greater control over their data while creating a massive database with up to date information for generating quality leads. The database is created on the principles of crowdsourcing data collection and the growth of which is only dependent on users who want to contribute their personal information. This dynamic will flip the standards of digital advertising models which transferred the power from marketers to consumers.

Conclusion

Blockchain technology is going to stay and there is no doubt in it. No matter if the marketers will adopt it or not, the market’s infatuation with the technology signifies the process has already started. The digital advertisers will be going to stay on top of upcoming companies that are based on blockchain technology. It may seem overwhelming, but the early adoption of blockchain technology will be important for the success of digital marketing strategy. Blockchain technology could turn this model on its head by an inadvertent regulator to the advertising industry.

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