The Future of Digital Marketing Belongs to Blockchain: The Power of Transparency

The value of blockchain technology in finance is undeniable, but it also offers digital marketing a wealth of benefits.

• Blockchain has affected operations across every industry, including the marketing department.
• Blockchain can be used to accomplish core marketing goals, such as building brand recognition and fighting fraud.
• Blockchain addresses consumers’ need for data protection and transparency.

What Is Blockchain? How Does It Affect Digital Marketing?

Put simply, a blockchain is a set of encrypted records, called blocks, linked together without the need for third-party verification. Blockchain has earned widespread global praise as the technology behind Bitcoin’s success. With blockchain, all transactions are recorded and verified in nearly real time. Marketers can tap into the beneficial properties of blockchain that users are working hard to control in today’s digital landscape: data protection and transparency.

Thanks to blockchain, marketing and data transparency can take big strides forward. Blockchain technology is developing quickly and affecting a wide range of industries. Although it is often discussed in connection with finance and banking, its ramifications reach far beyond traditional markets.

According to Statista, blockchain research is underway across a number of industries. Within this group of respondents, 40% said they understand or are researching the technology; 39% said they have experimented with blockchain or are building proofs of concept; and 12% are currently deploying blockchain technology and using it in their business operations.

Because blockchain is so closely tied to finance, it is not clear how digital marketing professionals can take advantage of its benefits. Blockchain has the potential to transform how digital marketers collect and use data, how they communicate with consumers, and how they handle advertising.

Here is a high-level look at the impact of blockchain on digital marketing.

Keyword Tracking

Keyword tracking is a challenge for marketers. Search engine algorithms change frequently, forcing marketers to adapt and change direction constantly. On top of that, it isn’t easy to detect keywords across different devices or to decode local and national searches. Organic SERP rankings are extremely elusive, and marketers often have to guess or estimate when reporting.

With blockchain, marketers can access accurate keyword statistics. A tracker built on blockchain can account for all the inconsistencies marketers face when compiling their work. Blockchain can detect keyword positions across devices, anywhere, in just seconds. Marketers can use this knowledge to build reliable, data-driven strategies.

Changes to Social Media

Companies like Sociall are changing the way people think about social media. This open social network helps people communicate, learn, and interact without the oversight of traditional social networks. Another platform, called WildSpark, plans to offer users “a new way to get noticed.” Essentially, it monetizes viral content on the premise that only quality content climbs the rankings. It will allow content creators and curators to directly benefit from the value they create for social media platforms.

These developments in social media give people greater control and power over their data. They also reward users for quality and viral content. For marketers, this represents a paradigm shift. However, initiatives like these have yet to be widely adopted. Marketers need to determine how relevant these decentralized social networks are and whether their potential customers are likely to use them. If they are, brands must be ready to provide full transparency.

Some marketers worry they will miss out on data collection, since gathering data from social media giants is still common today. But this only changes how marketers generate leads.

Better-Qualified Leads

Today, marketers collect data from a number of sources and piece it together to develop and run campaigns. This strategy is far from optimal, and some initiatives run on inconsistent or inaccurate information.

Because blockchain transactions are decentralized, marketers have to go straight to the source of data collection: the user. Marketers can compensate or persuade customers to hand over their data. Although this is a higher upfront cost, the ROI of collecting data this way will be evident in better campaign conversions, since the data comes directly from users and isn’t manipulated by intermediaries.

Consider this: customers who give your brand their data are likely already interested in your business. That improves lead scoring and makes conversion rate analysis more accurate, because the opportunities are ready to be nurtured. Sure, it takes more effort and upfront cost, but marketers will collect better-quality leads by using blockchain.

Fighting Ad Fraud

Marketers know all too well how often click fraud occurs in advertising. Adchain is an initiative looking to combat this with the AdChain Register, a smart contract on the Ethereum blockchain. Ad impressions and clicks are authentic because they live on a trusted blockchain. The company focuses on solving the lack of accountability and the high level of ad fraud. The platform provides end-to-end access to all data, a concept that doesn’t exist in today’s typical advertising space.

Transparency for Consumers

Finally, blockchain technology gives consumers unprecedented transparency. They will know who has their data and how corporations obtained it. Marketers will benefit from this scenario because they will have access to more accurate data for running campaigns with better conversion rates.

Businesses of every size are beginning to adopt blockchain technology, and marketers must adapt and follow. At first, it may feel like uncharted territory, but blockchain technology offers endless opportunities for digital marketing applications. Every effort will be well rewarded.

Part 1: The Future of Digital Marketing Belongs to Blockchain: The Revolution to Reclaim Privacy

Part 3: The Future of Digital Marketing Belongs to Blockchain: Fixing Misinformation

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