The Possible Impact of the Blockchain in the World of Marketing
Date : October 31, 2019 By
Blockchain is one of the buzzwords. A technology that has been among us for a few years but that many have not yet understood. I want to clarify your doubts once and for all and imagine some uses it can have in a field such as digital marketing. Welcome to the future.
What is the Blockchain?
Let’s start at the base. Blockchain technology consists of a system that allows data to be transferred in a secure and decentralized manner. The Blockchain can be compared to an accounting log book, which collects all the transactions that have been made.
The difference is that in this case, the information is encrypted and divided into small blocks and distributed among the different nodes that are part of the network. These nodes are responsible for registering and validating a transaction, without the intervention of an intermediary.
Blockchain technology consists of a system that allows data to be transferred in a secure and decentralized manner.
This provides security because, once it has been verified, the information cannot be deleted or modified, and is added to a chain of verified permanent blocks.
Although the Blockchain emerged linked to bitcoin, the reality is that this technology can be applied to any exchange of information: a medical history, the signing of a contract, the tractability of a food product, insurance … There are no limits.
Beyond its specific applications, the advantages of the Blockchain are indisputable for both companies and users:
- Immediacy: in the absence of intermediaries, the computer system can operate 24 hours a day, so the information is transmitted automatically.
- Reliability: the Blockchain has different forms of data verification, so once a transaction has been made it cannot be modified or deleted.
- Transparency: although a movement cannot be modified, it can be seen publicly, which guarantees transparency.
Impact of the Blockchain in Digital Marketing
Change in the way of collecting data
Currently we can all access the internet but, for this, we have to go through an internet provider and a web browser. These companies know everything about us: browsing habits, time we spend online, what we read or buy…
If we have learned something in recent times, (just think of Facebook and the Cambridge Analytica scandal for example), our data is merchandise available to advertisers.
This changes radically with the Blockchain. Blockchain-based applications do not store information on their servers, so the user’s personal data will always be with them. When using one of these applications, enter your password, use the service and log out, without leaving a record.
How will this affect online advertising if you could not access user data as is currently the case? If this were the case, data collection would depend exclusively on potential customers and on the interaction with brands to fill that gap.
And in the not too distant future it could be the same users who voluntarily decide what type of content and ads they want to see. We will have to think of new ways to reach them.
Loyalty programs of companies based on point cards could have the days counted as we know them. Blockchain technology can change the way of raising these programs that usually force users to have several cards, accumulate points, claim prizes or discounts, etc.
With Blockchain technology, different point programs can be grouped in the same application. In this way, users do not have to physically have or show a point card or similar.
The system would assign the corresponding points automatically when verifying that you have made a purchase in a given store. Loyyal or Vexanium are two companies that are already working on creating such decentralized platforms.
Improve Display Advertising
Today, display type advertising can be difficult to manage, and it is practically an oligopoly formed by the technological giants Facebook and Google. And from the user’s perspective, the thing does not improve: they are usually intrusive, they are annoying and monopolize a good part of the data rate.
An alternative that already exists today is the Brave browser, open source and based on Chromium. It focuses on user privacy, sharing the least possible data with advertisers, and rewarding users with their Basic Attention Token (BAT) token, based on Blockchain.
With the system proposed by the Brave browser, advertisers buy ads with BAT, while users are rewarded with BAT for viewing ads they can use to reward content creators that they like most.
Although the scope might not be so massive, this type of advertising could have a greater effectiveness, by generating more engagement because these are ads that the user wants to see.
Greater security in online shopping
Thanks to the possibilities of the Blockchain with respect to the tractability of a product, consumers would have more confidence in online shopping. Problems such as fakes or scams would cease to exist, since all the information would be in the user’s possession.
What do you think of these Blockchain applications in marketing?
The possibilities offered by Blockchain technology are endless. But the truth is that today, many of the applications we are talking about are in the early stages, so we still have to see how they develop.
There is no doubt that, if some of them are consolidated, the way of planning and carrying out digital marketing actions will change radically.