How Blockchain Can Boost Marketing Strategies
Blockchain is a technology that has flourished at an incredible rate. When Bitcoin was launched, blockchain technology was restricted to cryptocurrencies. Today, more industries are exploring the benefits that come with this technology. Marketing is one of the industries that is greatly benefiting from blockchain. This technology is solving the major setbacks that the marketing industry has faced.
Furthermore, every business wants to establish a strong online presence in today’s highly competitive digital marketplace. As such, companies want to ensure that they are well prepared with their marketing strategies. This is where the blockchain comes in handy as a technology that can change the marketing and advertising industry. Blockchains can be programmed in most programming languages of your choice i.e. C/C++, Java, Python, Solidity etc. If you’re looking to learn these languages, you can find the best community-recommended programming tutorials on Hackr.io. eg here are the best tutorials to learn Java. To know more about Blockchain, one can always refer to various online blockchain tutorials and get a good handle on it. Read on for more details on how blockchain can boost marketing.
Understand the blockchain
Blockchain is comparable to a database. Blockchain is made up of multiple blocks that are linked together to form a chain. Each block has information stored in it. The information stored in these blocks can be shared with desired users in a peer-to-peer (P2P) network.
Blockchain is protected by cryptographic technologies to prevent unauthorized persons from tampering with data. The data stored in the blocks follows a set of consensus-based algorithms. This means that once the data is stored by mutual agreement, no user can edit, delete or add data in the blocks.
Whenever a transaction takes place, be it contractual agreements or exchange of information or money, the transaction is done in bulk. The block must be validated by all users within the P2P network, and upon validation, a permanent digital record is established. Once this is done, the block is added to the chain.
The technology behind blockchain has made it fully auditable and transparent. It has no central point of authority and also lacks a single point of failure or control. Thus, the transactions carried out with this technology are totally secure and transparent.
Blockchain and the marketing industry
Blockchain technology has changed the marketing industry today. Here are some ways through which blockchain can boost your marketing strategies:
1. Target and engage the right audience
When it comes to online advertising, most of the advertisers hardly manage to target the right consumers despite having their behavioral data. Most marketers have a lot of consumer data and still pay exorbitant fees to intermediaries involved in advertising. Despite doing all of this, they are still unable to attract and target the right audience.
Blockchain is useful as an effective means of getting the right audience to see an ad. Blockchain creates a decentralized search engine where advertisers easily reach their target audience. Through the blockchain, advertisers can also compensate target customers using tokens when they provide their personal data to advertisers. Every time a person clicks on an ad, they get paid. People only see ads they indicate interest in, so only the right audience is targeted and engaged.
2. Prevention of ad fraud
Ad fraud is increasingly becoming a serious problem for marketers and advertisers. Paying for fake impressions and clicks is a common trend nowadays. Therefore, ad fraud distorts analytics data and this affects marketing strategies and decisions.
Blockchain technology comes in to show clicks on advertising platforms in real time. It also helps marketers to rent out their advertising platforms and attract quality traffic. In this way, clicks are authenticated, thus preventing ad fraud.
3. Creation of reward systems and loyalty programs
Customers never forget when they are made to feel special. Loyalty programs work well with sales because they make customers feel special. Blockchain can be used to create an unforgettable customer experience. Gift cards can be attached to the blockchain, thus creating a secure platform for maintaining and issuing loyalty programs and gift cards.
If customers accumulate gift cards and cannot redeem or use them, they will have a negative experience with the brand. With blockchain, gift cards can be converted into wallets or digital currencies, making it easy for customers to use or redeem them. Additionally, different gift cards and coupons can be combined and redeemed in a single transaction. This concept can save marketers thousands of dollars on their marketing strategies.
4. Crowdsourced Collaboration and Data Collection
Good data is extremely powerful for marketers. Despite having dozens of marketing tools and trying different marketing strategies, most marketers still can’t get quality and accurate customer data. Only the clients themselves can provide accurate data.
But how would a marketer get customers to share their data? This is where crowdsourcing and blockchain come in handy as a way to encourage customers to share their data. In return, they get compensation, so it’s a win-win situation for both parties. In this way, the data obtained is highly relevant and authentic.
5. Decentralization of electronic commerce
Blockchain is decentralizing the way consumers buy things online. Marketers can use technology to create decentralized marketplaces where merchants can sell their products or services directly to consumers without the need to use expensive third-party platforms.
6. Influencer Marketing
Consumers tend to believe what other consumers say about a brand rather than what a seller claims. Blockchain is making it possible to take advantage of influencer marketing. Through blockchain technology, marketers can authenticate the identity of influencers, validate their followers, and get a guarantee on their investment.
7. Eliminate the need for middlemen
Marketing involves finance and this means transacting through banks. Blockchain technology comes with digital wallets and eliminates the need to transact through banks. Blockchain ensures that transactions go smoothly and reduces the costs involved in transactions through banks acting as intermediaries.
As competition in the digital world continues to grow, marketers must look for innovative ways to boost their marketing strategies. Blockchain technology has proven to be a great tool that can boost marketing strategies. While this technology is still new to the world of marketing, it is already becoming a reliable alternative to other marketing tools, such as Google banner ads and pay-per-click. Undoubtedly, extracting its full potential can benefit markets by creating a transparent, authentic and secure customer experience.