Despite being the hottest trending technology on the block, only 8% of firmsacross the globe – rate the use of blockchain in marketing as moderately or very important. Being subjected to a lot of hype, the technology has been underutilized in this domain of business. Because of this pause, a natural barrier of entry has been estalsihed and are forcing companies and marketers to adopt a “wait and see” approach. However, there are many reasons to invest the time now to understand the technology, because like digital platforms, social media, martech, fintech, and numerous other innovations, the spoils of blockchain may go to early adopters who commit to ruthless innovation.
Here, we see the disruptive potential of blockchain on marketing;
– The Marketing Impact of Near-Zero Transaction Costs – Blockchain technology allows for near-zero transaction costs—even on microtransactions. Today, marketers often try to get access to customer data by paying third-parties (like Facebook) to share information. But blockchain could allow merchants to use micropayments to motivate consumers to share personal information – directly. In the same way, marketers can enable “smart contracts” that users can activate when they subscribe to email newsletters or sign up for a rewards program. Micropayments are deposited directly to the users’ wallets whenever they interact with commercial emails.
– Ending the Google-Facebook Advertising Duopoly – It is estimated that, by 2020 ad-blocking adoption will cost publishers $35 billion. Blockchain-enabled technology potentially allows marketers to recapture some of that revenue with a different type of model: marketers pay consumers directly for their attention—and cut out the Google-Facebook layer. While keyword-based search will not disappear completely, it will become much less prominent. Eventually, individuals could control their own online profiles and social graphs.
– Ending Marketing Fraud and Spam – Fraud verification via blockchain will also help verify the origin and methodology of marketers. Micropayments will also effectively destroy the current concept of mass phishing spam that dilutes the effectiveness of marketing for everyone. Blockchain could also make it difficult for bots to set up fake social media accounts, flood users with deceptive messages, and steal online advertising dollars from big brands. By using blockchain technology to track their ads, marketing teams can retain control over all their automation practices, ensure that marketing spend is focused on ROI-generating activities.
– Remonetizing Media Consumption – Blockchain-enabled editorial content will likely allow companies to enhance quality control and copyright protection. The average person who creates viral content, such as much-watched videos or social posts, could receive compensation for every click. Marketers gain visibility and transparency to differentiate between dormant and loyal customers, thereby expanding their strategies to send targeted offers to each group.
– Better Results for Companies and for Consumers – Consumers will also have an incentive to post an accurate social profile online – detailing what they are interested in – because they will get paid for it. Marketers will be paying consumers directly – not the social media middle layer. When targeting high value customers, the incentives will be accordingly higher. Blockchain technology holds the potential for societies to become more trustworthy and empowered, increasing visibility, connecting parties, and rewarding individuals for their contributions to transactions.