How Does Blockchain Affect Marketing and Advertising in 2020?
How does blockchain affect marketing and advertising in 2020?
What is blockchain, how does it work and what are its uses? And How Blockchain affect marketing and advertising?
These are the common questions asked about this revolutionary technology that may not be easy to understand for newcomers or even professionals. Join us to answer all these questions.
What is Blockchain? And how does it work?
Blockchain technology can be introduced as a database controlled not by a single central unit. But by a group of users; hence, it is decentralized and not controlled by a centralized entity.
All information and data contained in this system are encrypted and cannot be modified or deleted. According to Blockchain theory, any data and file can be stored in chain blocks. This technology is not limited to one domain, and health records, financial information, business transactions, contracts, etc. can be permanently and unchanged in the Blockchain System.
For these reasons, Blockchain is a new, secure and transparent tool for some industries such as Advertising. Let’s read more about Blockchain in Advertising and marketing.
What are blockchain uses?
According to IBM, here are some Blockchain uses you can see below:
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The Blockchain is really a revolutionary mechanism that brings everyone to the highest level of accountability. There will no longer be inaccurate transactions, human and machine errors or even a transaction that has not been performed with the consent of the parties.
Above all else, the most important area that Blockchain helps is to guarantee the validity of a transaction by registering it not only in a centralized location but also in a distributed system that is connected through a secure authentication mechanism.
This Technology in the finance sector eliminates intermediaries and summarizing this process. This is one of the overall benefits of blockchain. What makes people trust Blockchain is its transparency and its immutability.
As everything is publicly visible, and if anyone wants to see a change in Blockchain, they have to reach a level of computing power that can reach at least 50% change it to affect the whole network, which is impossible.
Blockchain trading is not like daily banking transactions that waste a lot of time. Because of the lack of intermediaries and third parties a blockchain transaction can be completed in minutes.
But the question is, what is going to happen with Blockchain’s future in marketing and advertising?
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How Blockchain affects Advertising
As mentioned, blockchain can be used in many industries and services, and in this opportunity I will mention the impact of Blockchain on online advertising.
Everyone involved in innovative businesses or startups must have happened to pay for advertising but didn’t see the feedback they were expecting or even in some cases they have been scammed.
-Remove the mediator
Take Google AdSense, for example, you are the person who wants to put your banner ad on the website. Here the Google service comes to get your banner ad and various sites through your Google AdSense service. Google shows you the amount of clicks and transactions through the panel.
In fact, Google is a mediator between you and the sites that represent ads and one of the reasons you trusting these websites without any knowledge is the trust you have in Google’s website and you only pay for it. You pay Google for trust.
-Trust and Transparency
But by doing so within the Blockchain, the intermediary between you will be destroyed, and all contracts will be digitally executed and everything is clearly and transparently visible.
So that consumers will be aware of the entire process before the distribution of the goods is visible. Such companies will be more responsible for what they do and there will be no falsification or irrelevant claims. Therefore nothing is actually hidden and everything is done correctly.
The elimination of advertising intermediaries makes advertising more profitable. The point is that most companies are not interested in disclosing or viewing their place in public. This may be one of the problems with Blockchain use in advertising. I hope it will be resolved by digital marketing.
Today, many solutions are offered by blockchain technology using many companies. For example, Comcast’s North American giant Telecom is partnering with Disney entertainment companies NBC, Mediaset, Channel4 and TFI to develop a blockchain-based platform for advertising campaigns that developers say while retaining user data, Manage these campaigns more efficiently and transparently.
– Helps advertisers select the right publishers.
– Quantify the results of an advertising campaign.
– Helps build trust and prevent fraud.
Another advantage of this method is to prevent fraudulent system that will prevent wasting millions of dollars on your advertising budget.
– Reduces transaction costs and speeds up transactions.
– Manages advertising transactions as a complete and decentralized tool.
According to PWC, there are some Blockchain solutions for advertising, are shown below:
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Why some companies don’t like Blockchain Advertising?
Many advertising services, such as Facebook, have banned Blockchain Ads because by implementing blockchain system in the digital marketing industry, other users’ information will not be shared with a particular company such as Facebook and Google, and in return for complete information. You will have a large bank of users (with privacy issues) and companies, and you will run your online advertising without any intermediary or knowledge. Here are some more interesting examples:
Social Networks Marketing
A prime example of blockchain-based social marketing is Steemit, in which you will gain a material interest in contributing and producing content, and all the information is stored on the basis of the blockchain.
Search Engine Marketing
For example, your interaction and search is streamlined on the BitClave website, meaning that both the advertisers get their customers and you as a user get paid for clicks or clicks or you are not shown any advertising.
So any digital marketing expert can do much more targeted and cheaper than before, relying on the impact of Blockchain on internet advertising and creating customer interaction based on profit and mutual satisfaction.
The important point is that startups entering the advertising industry will face many challenges. They are young players in the old industry where giants like Google and Facebook rule.
Google, meanwhile, is seeking to implement a system to fix fraud in this market. They have developed the ads.txt service for this purpose.
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According to PWC “Digital advertising has a trust problem, for which blockchain could be a critical part of the solution. Blockchain’s ability to conduct trusted transactions, manage and record data securely, and increase automation could help reduce fraud, increase data reliability, protect privacy rights, enable better data flows among partners, and deliver the right ads to the right consumers in the right places.
When combined with artificial intelligence to support advanced analytics and automate even complex processes, blockchain’s potential grows still further.
To implement a digital advertising blockchain, the different stakeholders will have to overcome key challenges, starting with ecosystem fragmentation and competing priorities that make collaboration difficult.
Yet there is a clear path forward, and the reward is clear: a revolution in trust, the customer experience, and the effectiveness of digital advertising.
The technology is ready. It’s time to start today.”
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