The technology that can drastically change digital marketing has arrived. It’s not social media, robotics or big data – it’s Blockchain – the technology that brings Bitcoin to life.
Blockchain – a decentralized digital ledger of secure web transactions. An article in Secure Thoughts digs deeper into what Blockchain technology is. The question we address here is: how will Blockchain affect digital marketing?
Given our close ties to the industry and our strive to deliver high-intent users to businesses worldwide, we couldn’t just bypass the topic. We exclusively operate over 2000 top-ranking sites, many of which are connected to finance like MoneyUnder30, Greedy Rates, for example.
We’ve already discussed artificial intelligence, and how it’s shifting the way marketers approach business, now it’s time to give Blockchain technology the deserved attention.
Long story short, here are 6 ways Blockchain technology is to disrupt digital marketing:
1) Blockchain Technology is Demolishing Ad-Fraud
$16.4 billion – that’s how much money ad-fraud cost businesses in 2017.
Because of Blockchain’s transparent, decentralized nature, advertisers would be able to disregard 100% fraudulent traffic and have greater confidence their ads are shown to humans, not bots.
With the cost of ad delivery auditing reaching the sky, Blockchain comes in as a practical substitute – decentralized ad auditing. Blockchain saves every event, so it would be easier to validate ad impressions and uncover the source of the fraud.
What Blockchain could do is extract ad deliveries from the server and then perform fraud analysis. For example, it would look for indicators like non-live browsers to identify whether the ad delivery is real. You’d be able to figure out which domain the impression came from by examining the referring URL, for example.
That’s just step number one for Blockchain. Step two would be to catch and prevent fraudulent traffic in real time.
Ad spend would decrease, giving marketers the ability to manage it more efficiently.
All in all, the advertising industry would become more accountable, if you will.
2) Improving Data Security
Blockchain technology is famous for its immutability. Each of the transactions is encrypted and gets time-stamped. Not to mention, every transaction block goes through an in-depth verification process involving multiple users, meaning it is impossible for a single user to manipulate data without it getting approved by others that own that same block – this enhances data security and allows to work in a more transparent manner using smart contracts.
Smart contracts consist of terms that are registered, verified and executed on Blockchain. As such, these contracts can only be annulled once a new contract is presented. They foster a conflict-free work environment, which does not include any third-party representatives like lawyers.
3) It Ensures Accurate Segmentation & Tracking
Marketers know the disappointment of not having the right data at the right time. Changing this reality is like a never-ending pursuit of happiness.
Blockchain tech would take the guessing about whether your ad has reached its audience out of the picture, providing multiple data points, all of which are stored in special blocks – hence the name.
At large, what this means is businesses would have access to the complete history of client preferences: patterns, tendencies, likes, et cetera. The beauty is that this would be valid for any targeted audience, platform or channel.
Blockchain’s influence would also be felt in the way segmented audiences are tracked. With Blockchain, you could start tracking users more accurately when they visit a specific page or read a content piece.
4) Blockchain Improving Analytics
Marketing analytics would get a facelift. Marketers would be able to make more informed decisions based on real-time feedback on all things related to users and their journeys. Because of Blockchain’s global nature, boundaries between organizations and decision makers would be erased, which means that your US branch and your branch in Asia could make business decisions together.
5) Solving Privacy Concerns
Privacy concerns over search engines’ data collection methods are reaching their top. At the same time, more and more people are becoming frustrated with the ways big corporations collect data and are advocating for more control.
Because Blockchain technology is decentralized, auditable, and transparent, it can give users the so long wanted control over their data, including what data to share and whom to share it with. It would make it easier for marketers to ensure regulatory compliance with the GDPR requirements (introduced in all major markets), which, among all, focus on marketers taking consent from their users.
6) Cutting Out the Middleman
Blockchain technology promises a more honest relationship between businesses, without third-party intermediaries. Take Google, for example. In 2017, Google made almost $74 billion in digital advertising. When it comes to Display Advertising, Google’s Display Network turns it into the middleman between publishers and advertisers. Google acts as a trustworthy institution and makes sure publishers follow the rules and don’t amplify their ROI at advertisers’ cost.
In the world of Blockchain, all the heavy lifting of bringing legitimate traffic and verified clicks would fall into Blockchain’s hands. Data exchange between parties would become direct, with publishers and advertisers entirely relying on each other. Plus, there would be no need to pay a share of the profits to the middleman.
Here’s a video explaining Blockchain and the middleman in more detail:
It’s true; these would only be possible once the Blockchain technology has been widely recognized by marketers on both sides: demand and supply – which is yet to happen. While the question of global acceptance can be viewed as the question of time, some argue that there are other obstacles like the knowledge gap and the problem of scaling.
For now, it remains unknown when every industry player will decide to adopt Blockchain. With that, it does not mean you can’t prepare in advance and be ready when Blockchain becomes a hit.