What is Blockchain. We are hearing more and more about Blockchain but what is it.
One of the industries which has recently been taken by storm by blockchain is advertising. An industry predicted to reach eye watering expenditure levels of $120 billion by 2021 in the US alone.
It is little wonder that companies such as Facebook, Google and Amazon are collecting information about its consumers constantly.
Still, nearly half of all ad traffic is generated using bots. Many Brands find they are paying vast amounts of money to try and reach their potential customers in the hugely crowded global marketplace and this still doesn’t give them any guarantees that sales will increase via those ads.
If businesses had the ability to target individual customers directly this landscape could change.
We are already seeing innovative technological advances aimed at doing just that and changing the face of digital marketing with products such as blockchain and smart contracts.
Blockchain, as an underlying technology, could be used in more ways than we have yet thought of or dreamed of.
It is the transparent nature of blockchain data that will allow companies and customers alike to feel more secure.
Digital Marketing – Direct to consumer
Blockchain is a technology that allows information to be stored or distributed, but not changed or copied.
Data will have a high level of security because of the way it is stored, as blockchain is a decentralised system. It will negate the need for middle men and as such will change the face of the online advertising industry.
At this time, businesses do this by running google or Facebook ads. Both of who make money from these ads. Companies like Bitclave, a blockchain company, focus on search-data privacy. This gives its users control over their data.
The Bitclave search engine uses blockchain technology. This creates a direct connection between businesses and consumers eliminating the need for ad services and the need for middle men.
Technology such as Smart contracts helps in money exchange, shares or anything of value.
It allows you to exchange these things in a way that is transparent and conflict free. Again, cutting out middle men such as lawyers. The technology uses programmed contracts which operate on blockchain and facilitate, verify and execute the terms of an irrevocable contract which can only be replaced by a new contract. This will make B2B cross promotional marketing more efficient in an age that bloggers, influencers and others use platforms such as You Tube and Instagram to cultivate personal brands.
Digital marketing with these groups can be profitable and fruitful but with no third party regulation each Individual has to determine their own costs and terms of agreement.
With technology such as smart contracts this can enforce those obligations automatically and make sure that payments are made only once the terms are met.
“Digital marketing fuels the engine of global ecommerce today, and as such, it should rely on the most advanced and secure backbone, rather than the security risk-prone technologies of yesterday,” Roger Haenni, cofounder of the blockchain-based data storage company Datum, told Forbes last month.
Blockchain allows for a “new class” of services with smart-contract technology. This technology helps businesses focus on commerce and protect themselves, Haenni said.
With contracts and with consumers
The transparency of blockchain data could make consumers feel at ease, as companies will be unable to manipulate their data. Customers will be able to see that what they are viewing is factual and accurate. Something many consumers want to see
For companies, they can use blockchain to show the consumers where their data is being used. Since this information cannot be changed or copied companies will be able to feel reassured that their information is secure.