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Digital marketing has grown by leaps and bounds in the last 30 years. From the moment it was coined in the 90s, to present age branches of digital marketing–it has proved itself to be one of the biggest forces in the advertising ecosystem.
With the growth of Artificial Intelligence and Augmented Reality systems, digital marketing seems to be taking yet another turn. It’s anyone’s guess what the impact of AI on marketing teams will be.
Another player in the current marketing ecosystem is emerging, born from a computer system, Blockchain marketing is a brand new term that business owners and advertisers need to know.
What is the Blockchain?
A blockchain in simple terms can be described as a ledger that records transactions. It is a digital ledger, that makes use of multiple computers to record transactions. The blockchain is decentralized, meaning that all transactions are not recorded, or validated in a central location.
The most common use case is recording cryptocurrency transactions and moving digital tokens from one crypto wallet to the next.
This allows for a system of transparency in how transactions are recorded and communicated. It becomes impossible for a sole entity to manipulate or change data.
Blockchain marketing technology can revolutionize the digital marketing landscape and how businesses carry out their activities–like business operations and engaging their customers.
For instance, the blockchain might be used as a way to keep track of securely stored customer data. This will allow brands to make more meaningful and targeted ads, personalized to their audience.
It could also streamline complex transactions with the use of something called smart contracts. These are automated contracts that self-execute—the terms agreed on by buyer and seller are written into lines of code, and essentially make the need for intermediaries like lawyers obsolete.
Effects of Blockchain Marketing Technology on Digital Marketing
The possibilities are endless when it comes to the way Blockchain marketing technology might impact businesses and digital marketing. Here are a few.
Upgraded data security
A major issue businesses face in the age of digital marketing is customer data protection. With cyber-attacks and data breaches steadily rising, it has become vital to ensure safeguarded systems are set for sensitive information. With blockchain marketing, this is immediately sorted as it offers a decentralized and secure way to manage and store data. And in turn, making it near impossible for hackers to worm their way into data stores and manipulate them.
Improved personalization
Digital marketing aims at meeting customers where they’re at. Targeting audiences based on shared preferences and their social media of choice for example. With blockchain marketing technology, this process can become even more personalized. Businesses can securely store customer data and carry out mass data analytics. This will create an environment for more personalized digital marketing campaigns. The type of data stored could consist of demographics, purchase history, and audience preferences, to create more laser-focused offers.
Boosted transparency
The need for clearer data representation without the noise that usually comes with trying to track metrics is vital for businesses to operate–and with blockchain technology, this process is made easier. Businesses can measure the success of marketing campaigns and informed decisions based on the data analyzed. Smart contracts will allow for real-time results to be available to digital marketers–automatically tracking the outcome of their campaigns. This effectively paints a detailed picture of their digital marketing efforts.
Simplified Processes
As we briefly explained earlier, blockchain technology can also streamline processes within the digital marketing industry. The digital age of built on being faster, better, and more direct to keep up with the growth of the internet. So making processes like buying ad space and banners easier will only help marketers. This can be achieved through the use of smart contracts. Reducing the need for multiple Media buyers and other intermediaries. And in this way making marketing efforts more cost effective.
New kinds of marketing
Blockchain technology can lead to brand-new types of digital marketing like blockchain marketing, the same way the rise of social media led to influencer marketing. An example is in the use of NFTs, or non-fungible tokens. NFTs are digital assets that represent ownership of items within the real world. This could be a piece of music, a collectible, art, etc. Digital marketers can use these NFTs to make unique products or experiences that can be sold to customers. Opening up innovative chances for engagement and audience retention.
Frequently Asked Questions
How is Blockchain used in digital marketing?
Blockchain technology can be used to ensure transparency throughout the process of carrying out a transaction by managing how transactions are recorded. This involves recorded transactions in distributed digital ledgers. The use of smart contracts can also help to eliminate middlemen in processes like buying digital ad space. Lastly, blockchain marketing provides ways for businesses to securely store customer data—which can then be analyzed to create more targeted offers and ads.
How can Blockchain improve marketing strategies?
Blockchain technology allows marketers to track customer engagement and transactions as they happen. This makes it a lot easier to spot what campaign combinations have been most effective, and which ones need to immediately be changed. This means blockchain marketing will help digital marketers make important marketing decisions on time in response to the dynamic digital market.
Conclusion
Ultimately, the possibility of blockchain technology impacting digital marketing and businesses in a big way is highly likely. It has the potential to alter the way marketers approach campaigns, leading to more secure and personalized experiences for businesses and their customers alike.
Staying updated on developments like blockchain marketing, and thinking up ways to integrate them with your business is crucial to marketing success.
