An Overview of How Blockchain Technology Is Changing Digital Marketing
In 2015, Forbes reported that the global advertising industry was worth $600 billion. By December 2017, it had a value of $1 2 trillion according to PO Media. That means it grew by $600 billion in less than two years. Market data from Forrester suggests that digital marketing played a significant role in this incredible growth.
More specifically, Forrester predicts that annual marketing expenditures by digital companies will reach $120 billion by 2021. These companies include corporate giants such as Google and Facebook among others. According to Forrester, they will spend loads of money on the collection of consumer data so that they can customize their advertisements.
Interestingly, bots will generate close to 50% of the ad traffic on their platforms. In other words, the data for creating advertisements will come from human sources, ordinary consumers. However, bots will be responsible for generating ad traffic targeting those consumers. Unfortunately, bots cannot create this kind of traffic as effectively as businesses can
Consequently, advertising campaigns that rely on bots are likely to fail when it comes to increasing sales for the advertisers. The best alternative is for businesses to target individual consumers directly. In other words, a continuous human-to-human chain, from the collection of data to the generation of ad traffic, is necessary.
The solution lies in recent technological advancements including blockchain and smart contracts. For example, imagine an augmented reality (AR) platform that integrates cryptocurrencies. Then it rewards users for viewing AR experiences. It would revolutionize the marketing industry because it would give advertisers sufficient data on consumer experiences when it comes to particular products.
Here is a comprehensive overview of how these advancements are changing the world of marketing.
Direct Marketing, From the Business to the Consumer
Blockchain technology is a decentralized system that facilitates direct communication between two or more parties. Additionally, storing data in this system is possible as is distributing it. However, changing or copying the data is impossible. Therefore, the integrity of this data remains intact once it enters the system.
It is worth noting that you have direct control over your information if you share it on a blockchain platform. For example, you can decide the amount of data that you want to share with other parties on the platform. In fact, Stepium is building a search-data system that reinforces this blockchain safeguard. It is using Ethereum technology to make this system. Intermediaries in the world of advertising will become obsolete. Bots will become unnecessary as well Instead, this system will act as a direct connection that links businesses and consumers directly. It will ensure that consumers receive compensation from these advertisers for the data that they have shared with them.
Strengthening Business to Business Contracts
You may have heard of computer-programmed contracts known as smart contracts. They operate on blockchain platforms facilitating, verifying, and executing contract terms. They are irrevocable meaning that neither party can go back on their word. This quality of irrevocability means you can enter into them without fear of a conflict arising in future over breach of contract.
The surety that these contracts provide for the parties that enter into them is ideal for business-to-business transactions. For example, they are an effective way of transacting with bloggers and influencers on platforms such as YouTube and Instagram. Remember, third party regulators are absent when you are dealing with such people.
The absence of these parties means that influencers and bloggers can easily breach a standard business arrangement without facing any dire consequences. In contrast, a smart contract ensures that the blogger or influencer remains unpaid until he fulfills his end of the bargain. However, replacing this contract with a new one is possible when there is a legitimate reason for doing so.
Transparency, Accountability, and Protection
The required level of transparency in the collection and use of consumer data is now possible thanks to blockchain technology. As mentioned earlier, copying or changing information on blockchain systems is impossible. Therefore, companies that use a blockchain to collect and use data have no way of concealing what they did with that data.
Consequently, businesses initiating digital marketing campaigns will be more accountable to consumers than they previously were when they used conventional advertising techniques. Finally, ordinary people will have a significant level of control over the data that they share with various companies. Now they can protect this data because they have an enhanced level of control over it