If you’re not familiar with blockchain, it’s a new way of processing data that many believe will revolutionize how we do business online. A blockchain is essentially an unchangeable ledger that stores encrypted data about the transactions that take place within the blockchain. Blockchain technology has the potential to make digital marketing safer and more transparent than ever before, by minimizing fraud and removing the need for middlemen like marketers, advertisers, and publishers.
One of the newest buzzwords in digital marketing circles is blockchain technology. This revolutionary development will change how businesses interact with their customers and improve how digital marketers can target their audiences, but it’s still in its infancy and few companies have been able to implement it successfully just yet. That said, these seven ways blockchain will improve digital marketing are an excellent starting point for implementing this new technology into your business plan moving forward.
Due to blockchain’s decentralized nature, there are no single points of failure.
What that means is in today’s online world where data is held on servers all over, if a hacker gets in he or she can steal a ton of data at once.
With blockchain most of your information will be stored in one location so if someone does get through it won’t be as damaging.
This can also improve marketing for brands themselves because they have less to worry about with it being stored safely away from anyone who might want to take it.
Blockchains are built on distributed systems that allow for easier, real-time and cross-platform integration between devices. In digital marketing, integration is a crucial element; integrating mobile and desktop experiences means that consumers can more seamlessly interact with brands.
Blockchains are optimized for fast data exchange among distributed nodes (devices), making it easier to sync up all of your digital channels from one central hub. Marketers will be able to better integrate their messages across different channels—think: one unified customer experience across desktop, mobile, augmented reality and more.
One day, we may even see smartwatches provide real-time location updates or status changes; imagine if customers could order a drink in a café directly from their smartwatch?
Consumers are becoming increasingly aware of digital privacy, so it’s no surprise that many brands have responded by implementing blockchain. Blockchain transactions occur directly between users and don’t rely on a third-party platform to process payments, so marketers have much less access to your personal information. This is great news for consumers who may be concerned about their data being hacked or sold without their consent. What’s more, blockchain will make it much harder for third parties to hijack your identity and breach privacy in other ways because all data is encrypted.
As more marketers begin using blockchain to facilitate digital transactions, you can expect greater privacy for yourself as well as additional safeguards against online fraud and identity theft. When choosing a payment processor or ad network, look for those that utilize blockchain technology.
In addition to cutting out third parties, blockchain’s distributed ledger technology allows for payments to be completed much faster than other systems. Currently, most payments—especially international ones—are subject to several days of processing. That delay is even more excruciating in today’s digital economy where it’s not uncommon for a company to send one-off messages on social media platforms like Facebook or Twitter . In theory, those messages should be sent and received within seconds, but in reality that can’t happen because of centralized ledger systems.
Blockchain could resolve that issue since its transactions occur immediately and simultaneously across multiple ledgers—that is, as long as nodes are honest about their data sharing.
One of blockchain’s more obvious applications, especially in digital marketing, is reducing fraud. As it stands now, a significant portion of all ad revenue—anywhere from 7% to 30%, depending on who you ask—is lost to fraud. Much of that stems from bot traffic and artificial clickthroughs.
With blockchain’s transparent ledger systems, there are fewer opportunities for fake clicks and bots to move through unchecked, which can protect marketers and publishers alike while delivering more value to consumers who want genuine ads with real value behind them.
One of blockchain’s biggest benefits is its ability to save marketers money. By leveraging blockchain technology, brands and their agencies can cut out the middleman (aka the man) and connect directly with their customers. The removal of third parties translates into cost savings and a more efficient marketing ecosystem for all. In turn, these cost savings can be passed onto brands’ customers, making blockchain technology a win-win for everyone involved.
Because blockchain is essentially a distributed ledger, it can serve as a single source of truth.
That’s especially important in digital marketing—an industry that has to contend with a lot of disparate sources of information, and where there’s significant lag time between planning and execution.
By adopting blockchain, marketers could speed up decision-making while ensuring they have more access to relevant data. It’s even possible blockchain will help facilitate programmatic media buying by providing near real-time data about inventory across ad exchanges.