How Blockchain is Transforming Marketing Strategies

Blockchain and cryptocurrency have become buzzwords far beyond the world of digital marketing and technology. Experts predict that the blockchain market will grow to nearly $40 million by 2025. But while crypto-related buzzwords have become impossible to avoid on a daily basis, not everyone is fully aware of what the shift toward blockchain technology will mean for brands, consumers, and digital marketers.

Related: 4 Ways Your Small Business Can Benefit From Blockchain

What is blockchain and how does it work?

Blockchains are electronic ledgers or databases. They are shared between various connections in computer networks and store information in digital format. Blockchains differ from other databases because the technology at their core guarantees that the records are kept securely.

Another difference between a blockchain and other databases is how the data is structured in the ledger. As the name suggests, blockchains group data into blocks. Think of them as the individual rooms or compartments in a storage facility. When a block reaches its capacity, it is closed and connected to the previous block.

This is how a chain of blocks is made. All information added when a block is closed must be stored in a new block. When the new block is completed, it is added to the existing chain, and so on. In addition to creating a chain, blockchain storage also creates a chronological timeline of when data was added.

A few years ago, blockchains were far from being a household name. That changed with the advent of cryptocurrencies. As the likes of Bitcoin have grown in popularity, so has the use of the blockchain as a ledger for transactions. One of the most important differences from other databases is that blockchain-based data is held by all users collectively rather than in one centralized organization.

What does blockchain mean for marketing?

The financial industry was among the first to adopt and invest in blockchain development. As a result, this industry continues to hold most of the market.

Digital marketing as an industry is only beginning to embrace the potential of this technology and create applications. But while marketers may be behind their finance counterparts in adopting blockchain technology, marketing will certainly benefit from blockchain applications.

Technology continues to evolve at this stage, and new use cases, including several for digital marketing, are discovered almost daily. Undoubtedly, blockchain technology and web 3.0 applications will improve how digital marketers handle data.

Blockchain will allow digital marketers to:

• Increase transparency for advertisers and marketers
• Quantify the results of marketing campaigns
• Prevent fraud

Increased transparency for brands and consumers

Consumers have long demanded increased transparency from their favorite brands. At the same time, they have objected to attempts at greenwashing and other tactics that can win the favor of consumers.

Blockchain technology can put an end to problems such as greenwashing because the ledger irrevocably documents the legacy of a particular product. Consumers can check far more detailed information about a given product than they can reach. Brands benefit from the opportunity to build increased consumer trust. For example, claims about organic or carbon-neutral products can be quickly verified through this technology.

Marketers who want to place ads also benefit. Increased transparency makes it easier for them to choose the right advertiser for a brand because they can more quickly check audience claims.

Related: 5 examples of companies that succeed through transparency

Quantify results from marketing campaigns

For years, marketers have tracked keywords to evaluate the success of their campaigns. Despite monitoring options provided by search engine operators, quantifying the results of a campaign has not always been easy.

For example, it is difficult for marketers to track organic search engine optimization results. Distinguishing keyword results on different devices can be as challenging as distinguishing between local or national search engine rankings.

Equipped with the right tracking software, blockchain can provide an answer to some of the guesswork marketers still do. The ledger can provide actual numbers for each keyword’s performance and track it over a period of time. Data with this degree of accuracy is valuable for more than reports. It also forms the basis for genuinely data-driven campaigns.

Related: Why Marketing Agencies Should Use Blockchain Technology

Prevention of data fraud

Blockchain technology will give consumers greater control over their data. Marketers need to develop more secure ways to store and access consumer data.

But blockchain fraud prevention goes further. Digital marketing currently suffers from illegitimate vendors who commit click fraud in pay-per-click (PPC) advertising campaigns, for example. Click tracking and end-to-end transparency can put an end to ad fraud.

Preventing fraud benefits digital marketers and customers. Marketers will find it easier to prove the validity of the results to the customers. Customers benefit from being able to track every interaction and get to know their actual customers better.

Digital marketing made better

Leading marketers have emphasized trackable, measurable results for years. Measuring and tracking campaign performance has been among the main reasons for the growing popularity of digital marketing as a field.

Blockchain technology will take these benefits even further. Blockchain technology makes it impossible to alter campaign results by recording clicks and other interactions in a temper-proof ledger.

Not only will this development increase trust between marketers and their colleagues as well as agencies and brands. The move towards blockchain technology could usher in a new era of marketing. The results can no longer be doubted or attributed to incorrect activity. Marketers will find it much easier to demonstrate the value of entire campaigns and individual activities within those campaigns.

In short, blockchain technology has the potential to usher in a new era of digital marketing accountability.

Related: How Blockchain is Creating a New Future for Digital Marketing