Adopting the latest technology in the evolving field of digital marketing is critical today. Many industries are already exploring blockchain which also serves as the foundation of cryptocurrencies like Bitcoin. But what does blockchain have to do with digital marketing?
What is Blockchain?
A computer network system or blockchain simply copies and publishes a digital record of transactions across the entire network. Every participant’s ledger gets a copy of the latest transactions that take place on the blockchain. And every block in the chain contains several transactions.
The term ‘distributed ledger technology’ refers to a database that a few cooperating computers, collectively known as ‘nodes,’ control. The blockchain development community works hard to offer cutting-edge technologies that cryptocurrency enthusiasts can use.
Undoubtedly, innovative Blockchain technology is capturing the imagination of the tech world and beyond. This technology promises transparent and decentralized systems. With decentralized finance (DeFi) and smart contracts, Blockchain continues to innovate all industries.
However, specific challenges come with the many advantages of blockchain. We must overcome these challenges to reach the full potential of blockchain technology.
Let’s look at blockchain technology’s opportunities and challenges in digital marketing.
Understanding Blockchain Technology
Digital marketing continues to grow in popularity among businesses that want to survive in this technological era. Using numerous digital marketing techniques is essential for every business to increase brand awareness.
Without a doubt, digital marketing is expanding quickly, and social networking websites are one of the most well-liked platforms. But like digital marketing, blockchain technology is also gaining rapid popularity.
Blockchain technology is both digital and decentralized. The world of digital marketing is one of the many areas where blockchain technology is making its mark. It can record all transactions that take place over client-server networks. Several decentralized systems protect the storage of records. Blockchain technology is notable for its lack of a centralized point, which makes it less vulnerable.
Influential Ways Blockchain Will Revolutionize the Digital Marketing Landscape
Better Security
The security of blockchain technology is one of its main advantages. The technology keeps data throughout a distributed network. That makes it more secure than most conventional systems. It is maintained throughout a distributed network, making it safer than traditional systems. That means businesses don’t have to worry about data theft and cyber-attacks.
Since it covers customer data, businesses can use blockchain technology to secure client data. They can assign a ‘digital identity’ to every consumer through this technology. That allows enterprises to allow authorized access to their data.
Purchase Cheaper Ads
One of the most inconvenient aspects of online marketing is going through an intermediary. Sometimes, it means doing business with an organization without your best interests. By allowing digital marketers to buy ads directly from their customers and avoid dealing with an intermediary like Facebook or Google, this problem can be solved.
Small businesses that can only afford to spend a little money on advertising would particularly benefit from it. That will give them equal access to the same clients, as larger businesses. That will help them boost their success rate.
In addition, irrelevant commercials won’t bore customers, and whatever ad’s they view will be relevant and intriguing.
Help Study Customer Behavior
Thanks to blockchain technology, marketers can change the advertisements they see and track their customers’ behavior according to this information. That implies customers will get more relevant offers from companies, which was not the case in the past.
Consequently, it will give more control to marketers over their campaigns, leading to better results. Digital marketers can use this data to target their ads better.
In addition, businesses can monitor the number of people who click on their ads or buy products through a link. That makes it easier for marketers to track which ads perform well and which need tweaking.
Alternate Payment Systems
Blockchain technology is the safest method of conducting online transactions. But here is another benefit of blockchain technology. It enables the development of alternative payment systems. That was previously impossible. Alternative payment systems may involve using cryptocurrencies like Bitcoin or creating digital currency for commercial transactions.
Businesses will significantly benefit from this feature in the future. That’s because they won’t have to pay hefty fees for credit card transactions. In addition, they won’t have to use third-party payment processors. A public ledger records all transactions that nobody can ever change or erase. That has been missing up until now. Hence it will be considerably simpler for businesses to keep track of their finances.
Demonstrate Environmental and Social Responsibility
Blockchain technology can be used by businesses to demonstrate their commitment to the community and the environment. Businesses will be able to know from where each item originated. This system was absent previously.
Since they can follow the supply chain from the development of the product through delivery, they can choose goods according to ethical standards. That is a fantastic opportunity for businesses that care about sustainability issues like labor abuse and climate change. Consumers also appreciate responsible and honest enterprises, especially in underdeveloped countries.
How does Cryptocurrency Affect Digital Marketing?
The decentralized and transparent nature of cryptocurrency allows businesses to reach their target audience. Many digital marketing agencies provide alternate payment options to their clients. They can accept payments in cryptocurrencies. That allows secure and faster transactions across borders.
That’s particularly beneficial for businesses that operate in countries with volatile currencies. That’s because it reduces the risk of fraud and eliminates the need for currency conversions.
Reports from the Wise Marketer reveal that cryptocurrency will reduce the number of parties involved in marketing campaigns. Generally, four parties are involved in modern digital advertisements: the advertiser, the consumer, the platform hosting the ad (Facebook, Google, YouTube), and the content creator.
Advertisers can eliminate the venue that hosts advertisements with blockchain advertising. Instead of paying them, marketers will upload their ads to a blockchain, making them accessible to their users. Finally, only three groups will be able to engage in the future of digital marketing: advertisers, consumers, and the blockchain that facilitates transactions between consumers and advertisers.
Benefits of Crypto-Driven Digital Marketing
Fueling digital marketing campaigns with cryptocurrency is an innovative strategy for promoting goods and E-commerce development services online. With the help of this marketing strategy, companies may target their core clientele and provide them with relevant information. Also, this technology enables businesses to monitor the progress of their marketing campaigns.
Social media enjoys a userbase of more than 3 billion people. That means it is a fascinating platform for businesses to engage with a large segment of their customers. Businesses can also show their ‘human side’ on social media.
Marketers always look for novel approaches to capture consumers’ attention and create brand loyalty. Businesses must provide unique benefits and cultivate sincere customer relationships to stand out.
Blockchain technology will create a reliable system with a simple user interface for loyalty programs. Since blockchain is decentralized, several businesses can band together to allow users to utilize their points with any brand on the network. Due to the real-time accessibility of these reward points, consumers can also use them on the go, which is advantageous for the ecosystem.
But what makes cryptocurrency-driven marketing campaigns so exceptional?
Here are some benefits of using cryptocurrencies in your digital marketing campaigns.
· Easier ad discovery
· Increased conversion rates
· Quicker interactions
· Greater user anonymity
All these benefits allow marketers to persuade their target audience to take quick action.
Finally, cryptocurrency is changing the way businesses engage with their customers. Many businesses now offer loyalty programs that reward customers with cryptocurrency instead of conventional discounts or points. That allows businesses to create a more loyal and engaged customer base while doing business with cryptocurrency.
We can safely conclude that cryptocurrency significantly impacts the digital marketing industry. It offers more secure and faster transactions. The use of cryptocurrency in business is also playing its role in the speedy adoption of blockchain technology. As this adoption grows, we will likely observe more innovative solutions in the digital marketing world.
What are the Challenges of Implementing Blockchain Technology in Digital Marketing?
Blockchain marketing may not be as economically lucrative as some marketers believe. Even if you hire affordable digital marketing agencies to implement blockchain, it may still be expensive. The Hyperledger feature needed in most blockchains requires a significant investment.
In addition to this, blockchains use far too much optical and mechanical energy. That could be challenging since the miner takes a lot of energy to oversee each issue.
Since users have discretion over how they consume content, marketers must abandon conventional marketing strategies. As a result, they will need to investigate other alternatives.
Marketers will need to be more inventive in collecting data for customized experiences since blockchain makes it almost impossible for third parties to acquire personal data.
The quality of this data will probably be higher, despite the higher price.
Additionally, Blockchain makes it simpler to give members more useful rewards rather than merely requesting their data and showing them targeted advertisements in return. That may include loyalty tokens, NFTs, and other rewards.
The capacity of various blockchain networks to interact and communicate with one another is called interoperability. This will be another significant obstacle that the industry will have to overcome. Different blockchain systems are available, each with its protocols and standards. They frequently need to interact appropriately.
Since people and businesses may need to use a variety of tokens or cryptocurrencies to communicate with various networks, the need for interoperability may result in inefficiencies. Furthermore, this fragmentation may discourage innovation and make collaborating more challenging. That’s because it will allow an inefficient transfer of information and value between various blockchain ecosystems.
Cultivating interoperability between various networks will be essential for maximizing the potential of the technology as the blockchain sector diversifies. The industry may strive toward developing an inclusive and effective digital environment. Such an environment benefits developers, users, and companies by promoting collaboration between blockchain platforms and dismantling silos.
Blockchain is still a developing technology that continues to face several challenges. Nonetheless, it is revolutionizing many industries and positively impacting digital marketing. Every business that wants to build its brand or reputation online should benefit from blockchain technology.
Final Thoughts
The predicted size of the global digital marketing and advertising industry will be $946.9 billion in 2027. That’s more than twice the figure in 2020. At present, there are many blockchain-powered ad networks on the market. This technology is receiving much attention from industry giants like Microsoft, IBM, and Oracle, etc. Toyota also uses blockchain technology to prevent fraudulent activities in its digital marketing campaigns.
Although we don’t realize the complete value of blockchain technology, we can measure its success in digital marketing campaigns. You can find out how blockchain technology can revolutionize your digital marketing campaigns. Contact us today.
