Blockchain Application in Marketing Technology Projects

15 March 2019 | Weronika Masternak | martech development blockchain

Is Blockchain the answer to the current MarTech industry problems? Find out what opportunities arise for marketers using the Blockchain technology,and what are the benefits of implementing it in Marketing Technology projects.

From the article you will learn:

  • about combining marketing and innovative technology;
  • how the Blockchain technology affects marketing;
  • what are the ways of promoting a brand;
  • about the benefits resulting from the use of this technology.

The technologies we use today were almost unknown and misunderstood on the mass market a dozen years ago. Today it is difficult for us to imagine a day without social media or smartphones. One of the technologies currently experiencing a boom – very much like its great predecessors – is the Blockchain technology.

The first major contact with this technology was the launch of Bitcoin in 2008. Although initially understood as part of the world of cryptocurrencies, with time more industries became interested in it. The marketing industry is one of those areas where you can see the combination of Blockchain technology and business, and advanced adaptation to existing needs. Blockchain in marketing solves some of the basic problems of the industry, like: the presence of ”intermediaries” and lack of process transparency.

Specifics of the Blockchain technology

Many people wonder if it is worth to invest in modern IT resources and what are the benefits offered by Blockchain, that could be treated as sufficient arguments for its implementation in organisational structures. The technology is mainly used for distributed data storage, and in comparison to other solutions it is characterised by:

  • unchangeability – the data encrypted in blocks cannot be changed in any way (even by the administrator). This is the main reason why this technology is very secure and effectively validate the information authenticity. These properties have made this solution a symbol of trust and security – according to forecasts, its value is to increase by 58.7 percent between 2016-2024;
  • uniformity – no single person is solely responsible for a block, unless they are a private person (a similar solution is used, e.g. by financial institutions). Global Blockchain has developed a consensus in which every block participant is aware of the transactions carried out within it, and bears the responsibility;
  • decentralisation – there is no central node for storing data in a Blockchain. Every block checks the correctness of the previous block and thus creates a strong network without a central point of failure. This property protects it against malicious attacks carried out by hackers.

Blockchain's impact on marketing

The above-mentioned characteristics allow for effective application of Blockchain in marketing and in projects requiring such a combination. Listed below are some ideas for using this technology:

Advertising frauds prevention

Advertising frauds are a serious problem for advertisers. Paying for false clicks and views is a constantly growing and disturbing phenomenon. Advertising frauds not only affect the budget of a campaign, but also distort the analytical data, which ultimately affects their strategic decisions. Using the technology allows you to view all clicks in real time.

Influencers' marketing disruption

In marketing, it has been noticed some time ago that the recipients of advertising are more likely to believe what people say about their brand than what the brand says about itself. In order to increase the amount of information about the brand, a cooperation with so-called influencers is engaged, and Blockchain allows you to face the most common problems of influencer marketing. By employing transparency and uncheangeability of the technology, the platforms for collaborating with well-known web users help marketers solve problems such as authenticating the identity of the person promoting the brand, checking the number and ”quality” of their followers.

Data collection disruption and crowdsourcing

Each marketer should use hard data. It is the basis of work on a given campaign. Despite so many tools available today, marketers are still not able to obtain a full package of valuable client information. As we know, the most accurate data can be provided by the client themselves. The question is: what will persuade the client to share their valuable information? The Blockchain technology, along with crowdsourcing, allowed for encouraging clients to share their data in exchange for compensation, e.g. in the form of a certain payment in cryptocurrencies.

E-commerce decentralisation

The Blockchain technology allows for circumventing the existing platforms for selling products, with which sellers have to share a portion of the profit in return for using their infrastructure. An additional benefit of such a solution is the increasingly popular embedded Bitcoin wallet, that helps you to pay and earn in cryptocurrency.

Impact on loyalty systems

Loyalty programmes are a form of rewarding the client for their attachment to the brand. How can the marketing industry use Blockchain to increase the clients' engagement in the brand's products? One of the solutions is to create a platform for loyalty cards within this technology, where it will be possible to safely issue and maintain gift cards and loyalty programmes. These cards can also be converted into digital coins/wallets, allowing the clients to exchange or combine them as part of a single transaction.

Engaging the community and targeting the right advertising recipients

A very large group of advertisements is struggling with a low percentage of effectiveness in reaching the target group and its involvement in the next step. One of the solutions derives from the Blockchain technology – these are the search engines not connected with the main search channels. They work in a similar way the Google advertisements do, but they are more data-accurate. The Blockchain-based Search Engine (BBSE) uses consumer data and their preferences to display better and more personalized search results, without the need to control the consumer data transferred or to collect them. In addition, as mentioned earlier, the recipients of the ads gain a certain amount of cryptocurrencies in exchange for familiarizing themselves with the advertising material, thus eliminating the currently dominant interdependence between the recipient and the advertiser.

Blockchain and MarTech-based business

Because customer experience is still at the centre of attention, marketers will look for innovative ways to improve their strategies. The combination of Blockchain and Marketing Technology (MarTech) gains unique results in terms of engagement, accuracy and consumers' satisfaction with the content reaching them.

Versatility of the discussed technology allows for its effective use in marketing activities. However, it is worth to devote the right amount of time for trying it and for possible consultations with specialists. Blockchain has different applications depending on the industry, so it is good to verify how Blockchain can help your company. Perhaps it is the element that will cause the desired market success and help to create the competitive advantage.

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