Most of the buzz we have heard around Blockchain is in the context of bitcoin and cryptocurrency. However, as the technology continues to mature, blockchain is all set to change the landscapes of many industries. A survey by Deloitte found that 83% of respondents see compelling use cases for blockchain in 2019, up from 74% in 2018. In simple terms, blockchain is essentially a decentralized database where everyone has a copy of the same database, and there is no intermediary whatsoever. Blockchain not just records transactions with financial value but all actions with any virtual value. For instance, digitalization of contracts/ documents, ad value of a commercial, a music track that played over a period, and a changed hospital record. The ability to verify both parties in a transaction and make a permanent public record of the exchange impacts all business areas.
What are the significant applications of Blockchain in digital marketing?
An end to confusing Ad-spent:
Lack of transparency and accountability in dollars value spent on ads is an issue with current marketing scenarios. Blockchain creates a trusted and verified chain from the ad dollar to the end-user. IBM-Unilever launched a blockchain project to cut down their ad dollars. Earlier, nearly 85 cents per advertising dollar made its way to the publisher. Today, that number has dropped to just 40 cents, primarily due to the many intermediaries in the process. The project has already resulted in tens of millions of savings for Unilever. How this works is first, it saves on intermediaries who offer measurement and source attribution services. Second, it improves the efficiency of billing and reconciliation. Third, blockchain documents where the ad appeared helping with safety and ad fraud.
Giving data ownership to customers:
Data security concern is most consistent with every technological advancement we can name today. We read or sometimes deal with frequent data breach incidents and wonder if our identity or financial information has been stolen or compromised. Most of the activities we do online can be tracked, and even our data are sold and used by different parties. With blockchain, not only each transaction is verified and publicly visible, but the people involved are anonymous. As a result, users will have better security for all transactions, and everyone involved is still completely unknown. Blockstack is a network built on Blockchain. It introduces itself as the new internet for decentralized apps. User’s data exists with them instead of existing with a platform or a server somewhere else. In this use case, the user’s data is protected at all times. Users give every app access as much as they need to. It’s safe to say, Blockstack gives back the data ownership to the users. Blockchain makes marketing customer-centric in the true sense.
- Ismail, K. (2019). How Blockchain is Disrupting Digital Marketing and Where It’s Headed. How Blockchain Is Disrupting Digital Marketing and Where It’s Headed. Published. https://www.cmswire.com/digital-marketing/how-blockchain-is-disrupting-digital-marketing-and-where-its-headed/
- Newman, D. (2019). How Blockchain Is Changing Digital Marketing. How Blockchain Is Changing Digital Marketing. Published. https://www.forbes.com/sites/danielnewman/2019/09/18/how-blockchain-is-changing-digital-marketing/?sh=7b3915b316eb
- Daley, S. (2019). 14 Ways Blockchain in Marketing and Advertising Is Getting Our Attention. 14 Ways Blockchain in Marketing and Advertising Is Getting Our Attention. Published. https://builtin.com/blockchain/blockchain-marketing-advertising-examples