Digital marketing forms the foundation for every business. In order to thrive in the modern age, one must have the means to effectively advertise across online platforms, including on social media. Experts have started to predict that the digital marketing world is due for a major shakeup. The blockchain could very well change how we handle digital marketing across every platform.
What Is the Blockchain?
The blockchain has found its way into a number of different industries, and digital marketing is no exception. It has revolutionized the marketing relationship that businesses have their consumers. The design of the blockchain is to increase transparency in every aspect of business as it holds onto information digitally. No one is able to change or delete the information on the blockchain. Companies can see just how much money they use and whether the intended party receives that money.
Changes in How Information Is Collected and Data Privacy
One major change that is predicted to come to the digital marketing world along with blockchain technology is how businesses collect and share customer data. Privacy is a major concern for every online action. Facebook recently came under fire due to their disregard for user privacy. This issue reaches much further than Facebook as websites will automatically collect information about the people accessing them. Companies will then develop profiles around each person based on the websites they visit, the things they search for, the products they buy, and many other things. People have to understand that what they do online is not necessarily private.
The blockchain can change all of this is it decentralized as the Internet. Accessing an application or a website through the blockchain means that the company does not have access to your personal data. Everything stays with you. The blockchain will protect your personal information, allowing users to determine how much information they share, rather than having everything taken from them without their knowledge – or indeed consent.
That means companies have to innovate new ways to collect information from consumers. Instead of having the datacentre them automatically, they are likely going to have to rely on getting data directly from a consumer.
Changes to the Style and Frequency of Digital Advertisements
Digital marketing has been around for a while, but it is still growing and developing. One of the main problems consumers have with digital marketing is being overloaded with adverts. Rather than sending out a small and concentrated amount of adverts, companies tend to overwhelm users by showing them too many in the hopes they will click just one. Most experts say that this is because companies don’t fully understand their audience and what they expect. They bombard users with advertisements hoping at least one will make it through.
Online advertisements – more often than not – will annoy consumers. Advertisements that pop up by themselves when you open a page and cover the entire screen are as annoying as they are intrusive. They can even waste the battery life of a mobile device and eat up bandwidth.
Basic Attention Token (BAT) – a piece of software powered by the Blockchain – is focused on changing the relationships between advertisers, publishers, and users. There are three steps to using the BAT for digital marketing;
1. Advertisers purchase ads. They can use Brave to purchase ads if they want, as Brave holds BAT 2. Users choose the advertisements they want to see. They will choose them rather than getting bombarded with uninteresting and irrelevant advertising. Users that volunteer to see ads are paid a small portion of how much the advertiser paid for the ad. 3. Not only do consumers get some compensation from BAT, but so do publishers. The payment sent to publishers is higher than the payment sent to consumers.
By taking advantage of blockchain technology and BAT, digital marketing will become more personalized. Users won’t have to deal with the frustration that comes with being overloaded with advertisements that they don’t care about. It allows users to get advertisements that are relevant to them without having to have their privacy breached and their personal information sent to applications and companies.
Changes to Ownership and Marketing of Digital Music
Musicians can have a hard time marketing themselves and their music. Piracy was a big issue in early 2000 as digital music became more popular. These days, people are using applications like iTunes, Spotify, and Tidal to stream their music. While those platforms have seen a sharp reduction in privacy, they can still be unfair to musicians. Artists will receive only a tiny amount of the transaction – even less than a penny – every time their music is played.
People in the music industry have begun projects that use blockchain and – ideally – remove the need for an intermediary application or platform such as Spotify. One of those projects is called Tao and it encourages bands to sell crypto tokens to their fans directly. Consumers can purchase merchandise, music, and tickets to live shows with their tokens. Bands can also use blockchain to set a time limit on a token, meaning that it would no longer be valid.
This would allow musicians to market their music directly to fans through the blockchain. Rather than having intermediaries take all their money, they can receive their fair share of the payment and be in control of digital marketing for themselves. The music industry isn’t the only industry that is considering using tokens of a credit system between consumers and advertisers.
Fewer, More Reliable Influencers
There are plenty of influencers to be found all over the internet, primarily on social media. These are people who have lots of followers that tend to listen to their recommendations and invest in the products or services they advertise. Companies are using these influencers by getting them to promote their brands through their personal accounts.
Getting an influencer involved is a great way to market a product, but problems can arise if one chooses a bad influencer. Some of these social media icons are followed by a lot of bots, which artificially inflates their popularity. Only a small percentage of the “people” following them are humans that can make decisions based on their recommendations. Partnering up with an influencer who has a lot of bots is a waste of time and money. The blockchain will allow companies to see who is really following an influencer. That will lead to a reduction in the number of influencers as those without real followings are forgotten and ignored. Companies that partner with influencers through blockchain can be confident it will lead to success.
Extra Accountability for Publishers
Before the blockchain came along, advertisers didn’t have much information about how publishers would use their ads. The cost of publishing ads – and the potential for ad fraud – mean that this transparency is vital. The transparency of the blockchain means that advertisers will be able to see how their adverts are being used and who is watching them, ensuring they are being seen by real people and not bots.
The Future of the Blockchain
What kind of impact blockchain will have on the world remains unknown. Industry experts are able to predict how it will affect digital marketing, but it will likely be some time before the effects of blockchain on digital marketing become known for sure.