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Blockchain and cryptocurrency have become buzzwords far beyond the world of digital marketing and technology. experts to predict the blockchain market will grow to nearly $40 billion by 2025. But while crypto-related buzzwords have become impossible to avoid on a daily basis, not everyone is fully aware of what the shift to blockchain technology for brands, consumers and digital marketers.
Related: 4 Ways Your Small Business Can Benefit From Blockchain
What is blockchain and how does it work?
Blockchains are electronic records or databases. They are shared between different connections in computer networks and store information in digital format. Blockchains differ from other databases because the underlying technology ensures that records are kept secure.
Another difference between a blockchain and other databases is how the data is structured in the ledger. As the name suggests, blockchains group data into blocks. Think of them as the individual rooms or compartments of a warehouse. Once a block reaches its capacity, it is closed and linked to the previous block.
This is how a blockchain is created. Any information added after a block is closed must be stored in a new block. Once this new block is completed, it is added to the existing chain, and so on. In addition to creating a chain, blockchain storage also creates a chronological timeline of when the data was added.
A few years ago, blockchains were far from a household name. This changed with the advent of cryptocurrencies. As Bitcoin has grown in popularity, so has the use of the blockchain as a transaction ledger. One of the most significant differences with other databases is that blockchain-based data is held by all users collectively and not in a centralized organization.
What does blockchain mean for marketing?
The financial sector was among the first adopt and invest in blockchain development. As a result, this industry continues to hold the majority of the market.
Digital marketing as an industry is only beginning to embrace the potential of this technology and create use cases. But while marketers may be behind their finance colleagues in adopting blockchain technology, marketing can certainly benefit from blockchain applications.
Technology continues to develop at this stage and new use cases are discovered almost daily, including several for digital marketing. Blockchain technology and web 3.0 applications will undoubtedly improve the way digital marketers manage data.
Blockchain will enable digital marketers to:
Increase transparency for advertisers and marketers Quantify the results of marketing campaigns Prevent fraud
Increased transparency for brands and consumers
Consumers have long demanded greater transparency from their favorite brands. At the same time, they have railed against attempts at greenwashing and other tactics that can curry favor with consumers.
Blockchain technology can put an end to problems like greenwashing because the ledger irrevocably documents the heritage of a given product. Consumers can look up much more detailed information about a given product than they currently can. Brands benefit from the ability to increase consumer trust. For example, organic or carbon neutral product claims can be quickly confirmed using this technology.
Marketers looking to place ads also benefit. Increased transparency makes it easier for them to select the right advertiser for a brand because they can verify claims from the public more quickly.
Related: 5 Examples of Companies Succeeding Through Transparency
Quantifying the results of marketing campaigns
For years, marketers have been tracking keywords to gauge the success of their campaigns. Despite the tracking options offered by search engine operators, it hasn’t always been easy to quantify the results of a campaign.
For example, tracking organic SEO results is complicated for marketers. Separating keyword results on different devices can be as difficult as distinguishing between local and national search engine rankings.
Equipped with the right tracking software, blockchain could provide an answer to some of those who still do. The ledger could give real numbers on how each keyword performed and track it over a period. Data with this degree of precision is valuable for more than just reporting. It also forms the basis of genuinely data-driven campaigns.
Related: Why Marketing Agencies Should Use Blockchain Technology
Prevention of data fraud
Blockchain technology will give consumers greater control over their data. Marketers must develop more secure ways to store and access consumer data.
But blockchain fraud prevention goes further. Digital marketing currently suffers from illegitimate vendors committing click fraud in pay-per-click (PPC) advertising campaigns, for example. Click tracking and end-to-end transparency can put an end to ad fraud.
Fraud prevention benefits digital marketers and customers. Marketers will find it easier to prove the validity of their results to customers. Customers benefit from being able to track every interaction and get to know their real customers better.
Enhanced digital marketing
Top marketers have emphasized measurable and trackable results for years. Measuring and tracking campaign performance has been one of the main reasons for the growing popularity of digital marketing as a field.
Blockchain technology takes these advantages even further. Blockchain technology makes it impossible to alter campaign results by recording clicks and other interactions in an obvious ledger.
This development will not only increase trust between marketers and their colleagues, but also agencies and brands. The move to blockchain technology can usher in a new era for marketing. Results can no longer be doubted or attributed to the wrong activity. Marketers will find it much easier to demonstrate the value of entire campaigns and individual activities within those campaigns.
In short, blockchain technology has the potential to unleash a new era of digital marketing accountability.
Related: How Blockchain Is Creating a New Future for Digital Marketing
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