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The marketing industry has witnessed a significant transformation in the last 20 years, thanks to the immense growth of digital technology. Back in the day, brands had more control over their customers, as they chose where people should come to purchase their products. However, with technologies allowing e-commerce businesses to grow, the power has gone back to the customers.
Once again it looks like the marketing industry will be seeing a change, with the introduction of blockchain technology. At present marketers are facing a lot of data breaches as they have access to valuable data about their customers. However, this is all set to no longer become a problem due to blockchain technology. Although its expansion beyond the finance industry is still in elementary stages, that doesn’t mean marketing has nothing to gain.
According to Statista, the market for blockchain technology will reach an astounding 2.3 billion by 2021. To give you an idea of what is possible with blockchain technology, here are some of the ways it will impact the marketing industry:
Better operations and cost efficiency
Every company’s Chief Operating Officer (COO) and Chief Financial Officer (CFO) will be grateful for integration of blockchain technology with their services. Companies need to carry out thousands of transactions on a daily basis, which takes an immense amount of time. However, with blockchain technology, the network can carry out thousands, even millions of transactions, at a much faster pace, allowing them to operate faster.
Also, companies have to pay a small fee for every transaction. One great advantage of blockchain technology is that it eliminates the need for a third party. Due to this reason, companies will have access to larger funds, which they can use for improving their marketing techniques.
Enhancement of transparency
The point of online advertisements and digital marketing techniques is to make the target audience confident enough to buy their products or services. Take a look at any influencer as an example of this fact. As influencers are trustworthy figures in the digital world, there is a much higher chance that their target audience will purchase the services and products they promote. As a result of this, they have higher Return on Investment (ROI).
Blockchain technology will offer the same level of trust to customers as it enhances transparency. Let’s say that a customer wants to purchase a pair of high-end shoes at a discounted price from an online store after coming across an advertisement. As blockchains will have a digital ledger, the customer can go through the history of the product to see if it is from a legitimate source. Customers will find the online store to be trustworthy while improving the user experience at the same time.
Improved influencer marketing
As social media and video platforms such as Facebook, Instagram, and YouTube witnessed tremendous growth, it gave birth to influencers. Brands use influencers as they want to create awareness for their products and services.
However, the downside is that brands can’t keep track of the impact of influencers. For starters, something as simple as the number of views, likes, and clicks that the influencer has to achieve isn’t easy to track. Blockchains will provide much better visibility, allowing them to keep an eye on the important details.
Introduction of loyalty programs
Another advantage that blockchain technology brings is that the brands can create their currency and use it for promotions through loyalty programs. When the brands use loyalty programs for promotion, it will generate significant amounts of interest within their target audience. For example, imagine if you could purchase a TV by collecting points from the loyalty program.
Another instance where blockchain will impact is the effective use of discount and incentives. The brand can collect data about their discounts and incentives to see which one entices their target audience the most.
One of the biggest problems that the marketing industry is facing at the moment is ad-fraud. According to this study, the industry lost 7.4 billion alone in just display ads due to unviewable and fraudulent inventory. The study also estimates this figure will reach $10.9 billion if it isn’t addressed immediately.
Thankfully, blockchain technology will make things better for the marketing industry as it allows them to find out if the clicks came from their target audience or bots. Also, it improves verification of advertisements significantly. Through this technology, brands will know the exact location of their advertisements. If the data provided by the companies displaying the ads don’t match, it becomes easier for brands to identify and blacklist them.
With data becoming a highly sensitive topic, customers want to ensure that brands use theirs safely and securely. Thankfully, blockchain technology is one of the best solutions available to the marketing industry which they can use to meet the requirement of their customers!
Brought to you by BlockchainSingapore.