Many people think about Bitcoin when they hear the word blockchain. But Bitcoin is just one application of blockchain technology, and unlike blockchain, it is a mirage. It’s considered as the most secure way that exists to encrypt sensitive information.
However, the blockchain has an impact beyond cryptocurrency. One of the main fields in which blockchain is booming is in digital marketing.
What makes blockchain marketing so unique?
It has a unique way of addressing consumer’s data security issues to an extent the customer’s trust never becomes a determining factor in whether they will network with your business, let alone buy from you.
Find out all you need to know about the blockchain marketing pros and cons here.
Pros of Blockchain Marketing
1. Improves Data Protection
Digital marketing is a complex process since the advertiser must ensure the message is delivered as intended. How do you stop fraudsters from taking advantage of your brand? All the blockchain transactions are held on a public platform and this makes it very easy to detect fraud.
Blockchain technology allows marketers to follow the direction of traffic. The ad-data they generate helps to unveil fraud and increase attribution. Plus, the technology allows users to control the amount of personal information they share and helps to settle privacy concerns from the user’s end.
In most cases, users are willing to give personal information to advertisers who reward them. How do you reward users? By paying them directly to view ads.
As you focus on blockchain marketing, your clients will easily trust you since they can easily find out about your brand.
2. Allows for Data Verification and Immutability
If you’re collecting data from different sources, you can easily verify and authenticate this data through blockchain technology. This technology also allows marketers to control how their content is delivered and ensure it’s well tracked.
It’s common to find digital marketers publishing outliers and consumers have no option but to believe the content published because they have no way of verifying.
However, with blockchain technology, all these claims have to be analyzed and validated.
In addition to verifying data, blockchain technology makes it impossible for anyone to change the data that’s written on the blockchain.
Blockchain immutability is very important for tracking transaction histories. This ensures the data is complete and consistent. Consumers can trust all the data they see about your brand and that makes it easy for them to trust you.
All the data that goes into this technology is 100% tamper resistant. If any of the party tries to tamper with the data, it will not only affect the entire chain but also notify all parties on that blockchain.
3. Eliminates the Need for Middlemen in Marketing
Ensuring transparency and accountability is critical for the success of digital advertising. In blockchain marketing, transactions are held on a public ledger and you can check out its history.
It also gives your business an opportunity to effectively target customers based on their personal information, and you can customize offers for them. This places your business in a strategic position and you don’t need to involve third parties for your marketing to succeed.
With blockchain, you can tokenize user behavior and create a reward system between the advertisers and the customer. This direct connection removes the middlemen running big media in digital marketing.
Consumers are no longer looking up to middlemen, but rather the source.
4. Helps to Increase Access to Related Data
Blockchain technology allows a marketer to access linked data and therefore you don’t have to reach out to different sources of data. Reaching out to different sources of data requires money.
The technology has smart contracts that enable marketers to sidestep ad platforms and reach the consumer directly. It gives marketers the power to have the data they can trust.
The consumers only give the information they are comfortable to share and this builds trust between the marketer and the consumer.
5. Promotes Ad Specificity
One of the major issues that create a negative vibe around digital marketing is that some ads are not relevant. Sometimes, even personalized ads may fail to hit the target audience due to poor conscious user engagement with advertising.
Trying to evaluate ads based on unverified information is a waste of resources. To solve this issue, ads should be based on the data consumers provide. Blockchain marketing helps advertisers engage only the users who are interested in specific ads.
6. Improves the Quality of Digital Influencers
Today, digital influencers play a significant role in pushing brands and their products.
Influencers’ role in digital marketing is going to change greatly. No longer will influencers boast in having the big following while in truth half of the number are simply bots.
In short, this technology only favors real influencers and they’re the only ones who will remain at the top. There will be few but legit influencers in marketing.
7. Acts as a Good PR Strategy for Your Brand
A business that adopts emerging technology earns respect in the industry as people will start to consider you as an “edgy” company. This is a good PR strategy that will market your brand.
Cons of Blockchain Marketing
One of the major cons of blockchain marketing is the lack of adequate legislation to regulate it. This means that your brand is held liable for any data breaches or mistakes that might arise.
In addition, this type of marketing can be slow and involving due to its complex nature. Once you connect with the customer, it will take them several hours before they respond to your questions.
A Review of Blockchain Marketing Pros and Cons Reveals More Benefits
A review of blockchain marketing pros and cons reveals that this technology will solve numerous marketing issues. Its pros outweigh the cons. This doesn’t mean its cons should be ignored. You need to establish a balance as you take advantage of the endless potential of this technology.
Do you want your business to succeed in today’s competitive market? Contact us to get started.