The Link Between Blockchain and Digital Marketing

Marketing is an exciting and ever-changing sector that went under a huge transformation in the last decade, and we are about to witness another revolution in this lucrative field. 

Digital marketing is commonly associated with hi-tech solutions like artificial intelligence, big data, and analytics, but the blockchain is on its way to make a huge impact in this industry as well.

Simply put, this technology enables transactions between two parties eliminating the need for third-party verification. It is a series of digital records, or blocks, that are linked together. 

Entering the mainstream

Bitcoin and Ethereum are the most widespread and accessible public blockchain systems. Blockchain technology gained popularity for being the vehicle that made Bitcoin possible.

Once a well-paid hobby for early adopters, bitcoin mining can be profitable in today’s environment with efficient mining hardware. Cryptocurrency mining saw a huge surge in interest in 2017, and it’s still going strong.

It’s no surprise since a couple of days ago the price of Bitcoin reached above $62,000, an all-time high.  

With Bitcoin rapidly moving to the mainstream, the underlying technology is getting more attention as well. Although most of the applications have been related to finance and crypto-currencies, there are numerous possible implementations for this technology. 

It is clear that blockchain will impact the marketing landscape, and it already is, so let’s take a closer look at the link between this innovative technology and digital marketing. 

Improved keywords tracking

Determining keyword rankings for clients can be a daunting task for marketers since search engine algorithms change frequently and organic rankings are particularly complicated to understand. In addition to this, tracking keywords on different devices is problematic.

Device type, location, browser type, and login status all influence keyword positions between users. 

With the power of blockchain, marketers could finally get a hold of real numbers. A tracker built on the blockchain using data from people who joined a certain network could track keyword positions across all devices and lead to increasingly accurate keyword rankings. 

As a result, marketers will be able to craft data-driven and more accurate campaigns. 

Blockchain and Digital Marketing

The blockchain and influencer marketing 

An increasing number of brands are working with celebrities and micro-influencers in an effort to leverage their authority and promote their products to a wider audience. Influencer marketing is a huge part of the digital marketing sector and its popularity only keeps growing. 

On the flip side, it can be shady and it comes with challenges for both advertisers and influencers. Some issues within influencer marketing aren’t yet resolved, like tracking the ROI and lack of transparency.

For starters, the question of integrity and effectiveness of both parties can be addressed with blockchain technology. It has introduced smart contracts, programs that run when predetermined conditions are met, and they have the potential to solve some of the above-mentioned issues. 

For example, once the influencer campaign is complete, these contracts will ensure the payment is made. This way, influencers can rest assured knowing they will be paid for their work.

This advanced technology can help marketers in verifying the performance of the influencer and their legitimacy too. And when it comes to reputation, there is no faking data or getting away with fraudulent reviews. 

Data about past actions and performance can be stored and shared on blockchain, and therefore available as proof of good behavior and successful results for both sides. 

Fighting fraud in advertising

Unfortunately, click fraud in advertising is all too common. By leveraging blockchain, AdChain is a company that is trying to solve the problem of ad fraud. They have been loud about the importance of using a decentralized list of trusted publishers. 

These lists are not vulnerable to infiltration as they are owned and curated by every blockchain token holder on the network, so malicious publishers can’t infiltrate. With blockchain technology, it is possible to keep the registry free from fraudulent domains.

The company developed an adChain registry, a list of trusted online publisher domains. This list relies on the community of token holders to maintain the registry and keep it trustworthy.

They too have been utilizing smart contracts, and what also sets them apart from today’s traditional ad space is the fact that this company provides end-to-end transparency for all data.

The emergence of social commerce

E-commerce businesses have exploded in the last decade. Online marketplaces have become very popular for both buyers and marketers. Social commerce is about to become the new revolution within this thriving field. 

The products can be sold directly on social media, so the entire shopping experience takes place on these platforms. For example, customers can browse and compare products on Facebook, and even shop on this platform without ever having to visit the company’s site.

Blockchain technology can be incredibly beneficial in social commerce, enabling faster transactions, preventing frauds, and keeping user identity anonymous.

There is yet another important application of this technology: ensuring the authenticity of products.  Consumers these days care more about where a product was manufactured or grown, how much the workers are paid and how they are treated. 

Thanks to blockchain, companies can verify the item is organic or made in a fair-pay environment. 

More power to consumers

Blockchain is changing the digital marketing landscape and giving the value of data back to the consumers. With the implementation of this innovative technology companies won’t be able to pull data from them anymore unless they compensate the consumers for the data’s value. 

Take the Brave browser for instance. It’s changing the traditional interaction between ads and consumers. 

Brave users can choose to view ads and earn Basic Attention Tokens (BATs) for every ad viewed. The Brave browser encourages its users to view ads by giving them 70% of the ad revenue.

Many blockchain technologies are focused on providing more transparency for consumers. 

This may seem like bad news for digital marketers, but it doesn’t have to be. They may have to pay for data collection, but the information they get from the consumers willingly will be genuine, and most importantly – highly usable and beneficial when running campaigns.