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Cryptocurrencies and especially Bitcoin have everyone in the digital world buzzing. There's a robust technology behind all of this, and that technology is blockchain.
It is essentially a decentralized unhackable database where everyone has a copy of the same electronic information. There's no intermediary whatsoever. The database is programmed to record not just financial transactions, like that of Bitcoin, but also virtually everything like an ad delivered or a contract signed.
Today, the blockchain is even bigger than you think. It's moved beyond just being a fad to becoming a foundational technology with cross-functional business apps. Marketers already lean on this technology for paid media outcomes, but what if blockchain could do more than enable reliable transactions? And why does this technology have a disruptive potential for marketing?
Weak Spots Of Marketing
There are a few massive pains in advertising. And blockchain is uniquely positioned to help these issues quickly. Among these points in question are:
- Data collection and privacy-related issues;
- Ad fraud, data quality, and reporting integrity;
- Ad delivery, frequency, and timing.
Distributed ledger technology can fundamentally transform the advertising industry by eliminating go-betweens, ensuring transparency and safety. This radical innovation can also take relationships with consumers to a new level.
Ending Advertising Fraud
An acute problem for brands and publishers in ad space is that an ad budget is not a see-through cost. There is practically no accountability on such expenses. Ad fraud costs marketers millions and billions of dollars each year. Each year monstrous amounts are lost to counterfeit inventory.
Facebook is the second-largest ad platform in the world. Almost 50 percent of ads on IE was for non-human traffic in 2017. So major brands and big spenders shrink their marketing budget because their agency can neither provide the transparency nor report on the expenses. Blockchain can possibly end this.
It is possible to make advertising more straightforward by approving and analyzing every consumer's experience through a confirmed ad display. It means you can control that a real person and not a bot has seen your ad.
Advertisers would have the option to control how their assets are being conveyed. They would be able to keep track of their ads being placed. This, in turn, would guarantee proper ad engagement monitoring, leading to better attribution and efficient ad spending overall.
Making Ads Less Irritating
The irritating nature of ads overshadows customer experience in the current digital marketing space. Customers are all over-vent with ad display. There are too many of them because marketers can't pinpoint customers' needs. They don't even realize what stage of the buying process they are in.
There is a saying in marketing, "Let's throw it at the wall and see what sticks." This is how advertising works nowadays. You see the same display ad for a hotel even though you have already booked the same hotel two days ago.
This is where blockchain technology makes a big entrance and prevents the same display ad from being over-served to anyone. It will ensure the optimal frequency of ad serving for each consumer.
Ending the Advertising Duopoly
Today, advertisers have to work with intermediaries and pay them a lot of money. For example, Google or Facebook accounts for the majority of marketing costs. However, extreme power over the market does not mean high efficiency.
Brendan Eich, the former CEO of Mozilla, founded a Blockchain startup to tackle this problem. He founded the Brave blockchain browser and BAT, which stands for Basic Attention Token. Brave and BAT break the advertising monopoly by allowing publishers and advertisers to trade on the value of users' attention. Users also choose the ads they like and opt-in the categories of interest. It's a happy medium for all parties.
Hence, blockchain innovation allows advertisers to compensate users’ time and attention and bypass the Google-Facebook layer. It also means direct interaction with users and sharing the reward of ad display directly with them.
Improving Security And Safety
A big problem in the marketing advertising space is data collection and privacy. Traditional gatekeepers such as ISPS, web browsers, and social media platforms can learn almost everything we do online from the sites we have been through to the content we read.
And unless you're living under a rock, you must have heard about significant data breaches. Blockchain could be a solution for this. An excellent example of a blockchain startup trying to solve the data privacy problem is Blockstack.
It's a network built on blockchain, which introduces itself as the new Internet for decentralized apps. As it's based on blockchain technology, your personal data remains with you instead of existing with a platform or a server somewhere.
Increasing Customer Loyalty
When users have full control over their data, marketers can communicate directly with the target audience and show personalized ads to those most likely to buy goods or services.
At the same time, thanks to the transparency of the blockchain, consumers may not have to worry about the illegal use of personal data and the accuracy of advertisers' information. Ultimately, this eliminates obtrusive marketing that irritates customers and uses methods based on trust.
If consumers trust the brand to protect their data, they will share it and be interested in buying goods and services. Hence, marketers will be able to more accurately assess customer needs to improve their products, make marketing strategies more productive, and increase conversion rates.
The Bottom Line
Over the past few years, the world has seen the sudden birth and rapid growth of blockchain-enabled technology which could become a cornerstone in the future of IT and business. A blockchain is a promising option for the advertising world as well. It has the potential to grow your organic traffic, which increases the effectiveness of the marketing campaign and boosts the user experience. This new technology also builds trust with people and improves a brand's reputation. In practice, organizations might have the option to advance a level of trust with consumers. This will help brands associate their products and services with purchasers in an unprecedented way and scale.
Author bio
Marie Barnes is a Marketing Communication Manager at Adsy, a paid backlink service . She is an enthusiastic blogger interested in writing about technology, social media, work, travel, lifestyle, and current affairs.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.