Blockchain technology is so much more than blockchain games and NFTs. It has finally shifted the way we market products.
Digital marketing is growing increasingly reliant on data and automation to streamline processes and target audiences more precisely. The role of blockchain technology here is expanding alongside other emerging fields like artificial intelligence, machine learning, and natural language processing.
As an emerging technology with the potential to reshape how digital marketers track user behavior and manage data, blockchain is poised to impact the industry moving forward.
In this blog post, we’ll be exploring how blockchain is impacting the digital marketing industry. You will also get to know about how blockchain is disrupting other important fields, such as supply chain management, accounting, finance, and contracts management.
What does blockchain technology bring to the table?
Blockchain has been around since the early 2000s and has seen some use cases in finance, media, and supply chain management.
However, the technology has recently exploded in popularity thanks to a surge in interest and investment from major tech companies. Google Trends has shown a steady increase in search interest for “blockchain” since 2016, with the term reaching a peak in June 2018 as the hype around the technology reached a fever pitch.
A blockchain is a tamper-resistant distributed ledger. The system creates an “immutable record” of transactions on a distributed network of computers. Transactions are recorded on blocks that are linked together to create a chain.
Due to its decentralized nature, the blockchain is highly resistant to data manipulation and hacking. Unlike centralized databases controlled by a single entity, the blockchain is a distributed network that is accessible to all parties on the network.
Benefits of blockchain technology in digital marketing
The blockchain network is a great place to store data, whether it’s customer data, IDs or insurance claims.
The blockchain is a continuously growing list of records, called blocks, that are linked and secured using cryptography. Since the blockchain is a decentralized ledger, all parties involved in the digital marketing process will have access to data.
Data integrity is one of the core benefits, with the tamper-proof distributed ledger creating an unchangeable record of all transactions.
The accuracy of data will be more reliable and less prone to error as the blockchain will not be controlled by a single entity and will be fully transparent.
The decentralized network will remove the need for intermediaries, which can affect data accuracy and lead to data being stored in various locations.
The blockchain will provide a single source of truth, which is particularly useful when it comes to brand identity and trust.
How does blockchain affect some aspects of digital marketing?
#1. Supply chain management
Supply chain management is a process that links a product’s journey from the source of materials to the end user. Blockchain technology can improve the way brands collaborate with suppliers to keep track of products and provide transparency along the supply chain.
For example, a food company creates a verified supply chain to track farm origins and ensure products are ethically sourced. This data can be verified and stored on the blockchain with a timestamp, and all parties involved in the supply chain will have access to it.
This will allow businesses to prove the authenticity of the products they sell, and offer transparency to customers.
#2. Advertising and branding
Advertising and branding are crucial for companies to grow their business and reach new customers. As a result, digital marketers are always looking for ways to better track and analyze how their ads are performing.
Blockchain technology can improve how companies track their advertising data, which makes it easier to see which ads are working and which need improvement.
This can help companies streamline their marketing efforts and maximize their return on investment.
For example, a travel company can use blockchain to track the impressions and clicks of their ads. This data can be synchronized between the blockchain and a centralized database, allowing companies to see which ads are working and make changes based on that information.
It makes it easier for brands to focus their efforts on advertising that is more effective, which will save time and money.
#3. Auditing and accounting
Auditing and accounting are vital components of any business, whether it’s a start-up or a large corporation.
All companies are required by law to keep accurate financial records that prove how they generate revenue, what expenses they incur, and how they use their funds. This data must be verified and audited by outside parties to ensure accuracy.
Blockchain can be used to track and record financial data across distributed networks and offer an immutable audit trail.
This will allow businesses to keep accurate records that are easily verifiable and transparent, which is helpful for investors and other third parties.
#4. Contract management
Businesses handle contracts on a regular basis as a way to establish trust and provide assurance to partners and clients. However, managing contracts can be a challenging and time-consuming process.
Blockchain technology can help companies manage their contracts more efficiently by providing a centralized database that records all information, including signatures, terms and conditions, and other relevant details.
This makes it easier for companies to track their contracts and maintain accurate records. And it can be helpful for industries like healthcare and finance, which rely on a lot of contractual agreements.
Additionally, blockchain technology can be integrated with other systems, such as business software or HR tools. This makes it easier to manage contracts across departments and organizations.
The bottom line
Blockchain technology can impact digital marketing in a variety of ways, making it easier to track customer data, verify authenticity, and manage contracts. This will help companies to improve trust and transparency, which is crucial for surviving the recent wave of online censorship that has affected major tech companies.
As blockchain technology continues to grow and evolve, it will be interesting to see how it will impact the digital marketing landscape. Digital marketers should be prepared to embrace new technology and consider how blockchain can help their workflows.
Guest Author: Andre Oentoro is the founder of Breadnbeyond, an award-winning explainer video company. He helps businesses increase conversion rates, close more sales, and get positive ROI from explainer videos (in that order).
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