Blockchain- A technology building the future of Digital Marketing
Online Advertising today is a trillion-dollar industry. Advertising outlay in India is anticipated to raise at 10% to achieve Rs61,204 crore in 2017 over 2016, according to an estimate by WPP owned media agency. No wonder: Every day, companies like Google, Facebook and LinkedIn collect information about consumers nonstop.
Still, almost 50 percent of all ad traffic is being generated by bots. Companies are paying huge amounts of money to reach potential customers. However, this doesn't give them any guarantee that those ads will increase sales.
What's challenging is that this scenario could well change once businesses have the ability to target individual customers directly.
Already, a number of technological progressions, like blockchain and smart contracts, are innovating the digital marketing industry to do just that.
We are optimistic on blockchain as an underlying technology that's going to prod disruption in more ways than we can believe or dream.
Come, let me show you how your business could utilize these innovations to more effectively market itself.
Direct-to-consumer digital marketing
Blockchain, a revolutionary and well-secured technology that has recently taken the advertising industry by violent storm, allows information to be stored and spread, but not to be converted or copied.
As we know blockchain is a decentralized system, data stored this way possesses a high level of security. This technology is going to modernize the online advertising industry because it will nullify the need for middlemen. Currently, businesses run Google ad campaigns or Facebook ad campaigns, and both platforms make money from these ads. But blockchain based ad companies are focusing on search-data privacy, giving users full control over their data.
These new age search engine uses Ethereum blockchain technology and wipes out the need for ad service people, creating a direct connection between consumers and businesses. This is the style mark of blockchain technology: It eliminates the need for middlemen in all transactions.
When users execute a search, they can select the quantity of data they want to be free to advertisers. Then, unlike what happens with other digital marketing services, users can be remunerated for their data. So, instead of a mediator selling your data to advertisers, you’re selling it to them directly -- yourself.
Cross-promotional B2B contracts
Smart contracts assist in facilitating you exchange money, shares or anything of value in a conflict-free and transparent manner and letting you avoid additional players, like lawyers. These digitally programmed contracts operate on blockchain technology that facilitates, verifies and performs the terms of an irrevocable contract that can only be substituted by a brand-new contract.
These contracts will make B2B cross-promotional marketing much more effective, especially in the age of influencers and bloggers, who use different platforms such as YouTube and Instagram to cultivate personal businesses & brands.
Digital marketing with this group of influencers can be productive but has its challenges since there is no third party regulating the terms of the agreement and each individual determines his or her own costs.
Smart contracts can automatically impose obligations on all parties involved, to ensure that payments are made only after the terms are met. For example, if an agency never publishes an article or social media post about a brand, the smart contract that's in place won't release the agency's payment. Each milestone comes under contract has to be met in order for the following step of the process to take place.
“Digital marketing fires the engine of global commerce today, and as such, it should bank upon the most advanced and secure backbone, rather than the security risk-prone technologies of the past,"
Blockchain technologies allow for a "new class" of services with smart-contract technology. This technology helps brands & businesses to focus on commerce and protect themselves.
Transparency in contracts and with consumers
Companies can use blockchain technology to show consumers whom they are selling their data to. And, since this information cannot be altered or copied, companies that use this technology to store their data can rest assured that their information will not be compromised.
The transparent nature of blockchain technology data can also make consumers feel at ease because companies cannot manipulate their data. This tells consumers that the data and information they are viewing is factual and exact. And that is something users want.