Companies are built on trust —and on truly effective marketing. And these two are deeply interconnected at the moment: if you want consumers to trust you, you need outstanding marketing teams to show the world how great you are through memorable experiences.
Now that blockchain is slowly entering every single aspect of our digital lives, companies have started looking into ways to leverage this new and exciting technology to run better marketing campaigns and reach their target audience. They seek to improve many of the pain points that are currently haunting this discipline and boost trust across all their marketing efforts.
Also, blockchain-based solutions could offer marketing experts innovative ways to wow their customers with disruptive and exciting experiences aimed at building brand awareness and boosting engagement with the brand.
Let’s dig deeper into how this technology can help companies forge a more trusting bond with their consumers while providing them with memorable experiences. These are 4 different ways in which blockchain might revolutionize the world of digital marketing:
- Security, privacy, and transparency
Many companies have already started integrating blockchain technologies into their processes and supply chains to improve their security standards and guarantee transparency and privacy. J.P. Morgan, for example, has created an enterprise-focused coin to process private transactions more safely.
And data security has always been a big issue when it comes to digital marketing. This industry operates on large amounts of data, and there’s always a risk of data breaches and leaks.
Through decentralized identity and privacy mechanisms, customers can immediately find out who has access to their data and how they got it, as all transactions are verifiable, permanent, and traceable. Additionally, blockchain technology allows people to store their data outside of the parties with whom they transact.
There is a commonly held view among blockchain fans who say that a ‘Self-sovereign Identity would be good for both the business and the customer from a marketing perspective. This self-sovereign identity can only happen through blockchain. The way it works is that individuals control the data, rather than one entity (or a few third parties). Take for example your home purchase. You would be able to store your data privately and when you want to insure your home, the insurance agency would trust that your data is ‘legit’ and if they decide to independently verify, they can choose to do so. A Self-sovereign identity through blockchain translates to more successful marketing if an Insurance Company decides to welcome such technology.
Also, it’s not possible for third parties to intercept data or tamper with confidential information. This could potentially enhance consumer trust and improve people’s perception of brands and their marketing campaigns.
- Improved data collection
Data collection is a key aspect of digital marketing. But data is currently sourced from different brokerages that centralize all the information, so this usually translates into inaccurate, incomplete, or unreliable data. Simply put, unreliable data = poor marketing performance..
There is no doubt that, when it comes to data, Google-Facebook are a ‘duopoly.’ This duopoly means that data is in the hands of 2 giant entities that can do as they please with the data, despite the theoretical policies.
In a decentralized scenario, data would be collected automatically through a smart contract with expressed consent by individuals. This would garner quality data for marketers. And customers would be able to trace their data in the public database or audit the smart contract. Companies that implement this blockchain approach towards data collection could have an edge. As the right to privacy is considered to be a basic human right in many parts of the world.
The digital marketing industry could greatly benefit from the decentralized nature of blockchain because it would end this duopoly and provide marketers with the chance to establish a direct relationship with consumers and get accurate information directly from them and with their knowledge.
As a consequence, consumers’ privacy and digital rights would remain protected and marketers would be able to access that much-needed data to run more effective and targeted campaigns.
Also, if customers provide their data to marketers directly and voluntarily, it helps them understand their audience better and identify qualified leads in a much easier and streamlined way, improving the overall selling process.
- Eliminating click fraud
One of the biggest issues in the realm of digital marketing is click fraud —that is, when a human or a computer clicks on ads posing as a legitimate user, therefore increasing the site owner’s ad revenue.
There are already some startups out there trying to solve this issue. For instance, adChain Registry has created the first token-curated registry for the world of digital advertising to prevent fraudulent practices and increase authenticity levels. It basically guarantees that impressions and clicks are authentic because they are recorded on the blockchain.
This type of solution could do wonders to enhance consumer trust in the context of digital marketing, which is a valuable asset for companies looking to sell and place their products.
- Disruptive customer experiences with NFTs
NFTs are revolutionizing many industries, including digital marketing. These blockchain-based tokens could help marketers build brand awareness, expand their audience, promote events, and generate unique customer experiences.
And many companies have already begun leveraging the potential of NFTs:
- Taco Bell recently launched a collection of 25 taco-themed NFTs on the platform Rarible, and they sold out in about half an hour. The Taco Bell Foundation later donated the proceeds to the Live Más Scholarship.
- Original Penguin organized an NFT auction with TikTok influencers including eight augmented reality NFTs designed by the TikTokers and the brand.
- Last November, McDonald’s held a giveaway involving a limited number of “McNFTs,” as they called the tokens, to celebrate the return of the McRib to its menu.
Transparency vs. Privacy of Data
There is a dilemma that exists between choosing transparency or privacy. Collecting personal data for lists through a smart contract means that the data is recorded and publicly shared. This could have an impact on transparency. Some would choose to opt-out and conceal their identity and data. And if they decide to do so, it would be their right. On the other side, some might demand full transparency. This is subject to debate.
Some companies like charities might benefit from full transparency. While some Luxury industries like watches might choose privacy over transparency. Whatever the case might be, this challenge could actually be an opportunity for a company to appeal more to its target audience. If, for example, the ideal avatar of a business is one who appreciates transparency, then they should go for a transparent database. And vice versa.
Using Blockchain as a Marketing tool
Technology is evolving at an unprecedented pace, and even the most traditional industries need to keep up. To stay relevant, the marketing industry needs to adapt to a new era where respect for people’s digital rights, privacy, and security is paramount.
Thanks to blockchain-based solutions, marketing experts can help companies build long-term, trusting relationships with consumers, guaranteeing security, privacy, and transparency when it comes to gathering and using data for marketing purposes.
Also, now that consumer expectations are at an all-time high, innovative blockchain technologies such as NFTs can provide marketers with that “wow” factor they need to offer people memorable experiences and keep them engaged with their brand.
There’s a lot of untapped potential regarding blockchain and digital marketing, and only those companies that manage to leverage it will thrive in this new digital age.