4 ways blockchain technology is transforming marketing
Do you think blockchain technology is only for NFTs in marketing? Think again. Here are three other ways blockchain is being used to change marketing.
Published: August 5, 2022
The use of blockchain technology in marketing is increasing, and having blockchain technology capabilities is one of them 25 Most Wanted Skill Sets in the United States.
Let’s start with a definition of blockchain: “Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network,” according to IBM. “An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyright, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and lowering costs for everyone involved.”
We take a look at four main ways blockchain technology is impacting marketing:
Non-functional tokens
The use of NFTs by brands to engage consumers is now a pretty common strategywith recent examples included Under Armour’s collaboration with Curry Brand or Coachella’s use of NFTs to offer additional benefits to festival attendees. The latter is an example of how NFT’s marketing strategies develop from giving consumers collectibles to offering value in everyday life, writes Ann-Marie Alcantara in The Wall Street Journal.
Business-to-business marketing startup Hang aims to help marketers use NFTs to transform loyalty and rewards programs.
“Due to blockchain technology, NFTs create a way for brands to encourage their users to not only level up in the program, but actually appreciate the value of the asset they own and can later resell [NFT] marketplaces,” Hang co-founder and CEO Matt Smolin told me CNBC.
To increase trust
Brands use blockchain technology to increase consumer trust. The decentralized nature of the technology allows for greater transparency as all data is publicly available, with every change in the chain verified and impossible to fake, EWR Digital’s Matt Bertram writes for Contractor. “Blockchain is not only a good investment to build trust with our customers, but also to protect our collective online privacy and cut down on fraud and theft,” writes Bertram.
The technology can also be used to increase consumer trust in brand messages around issues such as sustainability, as it can provide evidence of ethical supply chain transactions, writes Werner Geyser to Influencer Marketing Hub.
Word of mouth marketing
Attrace CEO Erwin Werring explains how blockchain technology is poised to transform word of mouth and referral marketing in this article for Daily Hodl. Blockchain simplifies the reward mechanisms brands can use to encourage customers to be brand advocates or to refer new customers. Marketers can consider using blockchain to increase word of mouth and social marketing using companies such as Loyyal, Cryptibles or The Boomerang Project, writes Sam Daley to Built-in.
Rewards for viewing ads
Consumers complain about being bombarded with digital ads, an ongoing problem for marketers, but blockchain technology could be used to incentivize views with cryptocurrency or other rewards, Werner Geyser write. Brave is a browser that facilitates this exchange.
“This could be a game changer for phenomena like ad fatigue as consumers will ask directly to see ads, rather than being shown every time they scroll down a page,” writes Geyser.
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