In Laymen’s terms,
Blockchain Technology can be explained as spreadsheets or ledgers which are shared and maintained concurrently over several computers without a centralized area for storing. In the area of digital marketing, blockchain has exploded in popularity and has been adopted by several organizations.
Some organizations have already started using blockchains in order to market themselves and their products in a new promising way. Consumer trust has been a major concern and a challenge for many organizations. Organizations use transparency for gaining trust, this transparency is offered by blockchain marketing in a manner which different strategies do not.
An additional value of blockchain technology is the height to which all data is acknowledged and proved. E.g., a client can acquire a “behind-the-scene” retailer’s supply chain view and determine the exact way products were prepared (Medal, 2018). This transparency lets customers determine if an organization is to be trusted over its claim or otherwise.
In the following case study, Walmart partnered with IBM for a project of making the company’s supply-chain processes further clear. By the use of blockchains to trace digitally the place in which the company’s pork product originated, beginning on the Chinese located retailers, customers acquired the required proof for trusting the Walmart’s products.
The following are some of the innovative adoption of blockchain digital marketing:
Brave and the Basic Attention Token
The Brave browser is a modern and a tech-advanced ad-blocking software: it is used for blocking any tracker and an intrusive ad. Brave browser is very fast and it even allows display of an ad that respects the user’s privacy.
Brave browser has introduced BAT (Basic Attention Token), aiming to carry the model of digital marketing back to a simplified user framework, advertiser and publisher, with no cuts by middlemen that would make its marketplace opaque and inefficient.
Brave browser uses a technology that allows anonymous tracking of sites of interest. This functions as a cycle: a publisher receives a token when an ad is viewed and then a user chooses to get and view the ads (Jade, 2017). Then, a user can opt to donate back the tokens to a supported publisher. This allows advertisers to pay based on “mental effort” by the person viewing the ad. That means smarter spending—and connecting—with potential customers.
This process is carried out by the use of blockchain, rendering it reliable, trustworthy and private, and giving light into advertisement future.
This is a technology organization of marketing created on blockchain.
At present, nearly all advertising which is done by any marketer is carried over a certain intermediary type. Businesses pay Facebook for running an ad to users. Businesses pay Google for showing their websites top in the search engine. Businesses pay YouTube for playing their video to particular groups.
In absence of blockchain, the transaction between an advertiser and the owner of a website looks as below:
In presence of blockchain, communication between an advertiser and the website owner is facilitated directly due to the reason that a user and a click is validated automatically.
The idea of BitClave is that instead of a business making payments to middlemen such as Facebook and Google, it eliminates the middleman by using a smart contract.
Smart contracts are programs which control currency transfers automatically over two parties (Lee & Deng, 2011). In this certain case, a consumer has a complete control towards their individual data without having to give it to the advertisers.
Looking into the future, blockchain digital marketing is set to replace many advertising companies through the elimination of middlemen and letting various individuals interact by using a smart contract (Griffin, 2016).
Although blockchain is relatable to cryptocurrency, this should not outshine its digital marketing use. Various organizations are even now leveraging this technology of blockchain for increasing transparencies and reducing frictions, and a marketer has a capability of leveraging such tools for acquiring more consumers at cheaper costs.
Best, J. (2018). Breaking the Digital Gridlock + Website. Newark: John Wiley & Sons, Incorporated.
Griffin, A. (2016). get ready for the future. Retrieved from https://www.bing.com/cr?IG=5B8DD285925B49FD970F7DEA74BD8AA4&CID=021387482D4D655D35078B542CB064CF&rd=1&h=nqX7gk-6oSIYM7JwR_tLI37rqSTqChiBiWGw2zu3TwI&v=1&r=https%3a%2f%2fblockchaindigitalmarketing.com%2f&p=DevEx.LB.1,5524.1
Jade, A. (2017). Blockchain Digital Marketing. Retrieved from https://www.forbes.com/sites/danielnewman/2017/11/14/4-ways-blockchain-will-transform-digital-marketing-and-advertising/
Lee, D., & Deng, R. (2011). Handbook of blockchain, digital finance, and inclusion.
Medal, A. (2018). How Blockchain Is Creating a New Future for Digital Marketing. Retrieved from https://www.entrepreneur.com/article/304654