Impact of block-chain Technology in Digital Marketing
Nothing has stirred up this decade of tech wizards like the word Bitcoin. This cryptocurrency, built on the back of the blockchain technology, has been able to revolutionize the way we look at the market, and, in turn, the way we look at marketing. But it’s not merely the currency in itself that has caused this change, the credit here goes to the technology that has fuelled it. Let us understand more about this technology first before getting into the impact of block-chain technology in digital marketing.
What is blockchain technology?
In the simplest words, blockchain technology is a form of recording digital data that can be shared between specific users, with enabled protection that makes the data near impossible to tamper with. But since its inception, it has gone through various developments, and can now be integrated into almost any internet-based service. Blockchain is used by various platforms to ensure that their users can gain complete trust upon the platform. It is also becoming the most effective way to conduct a secure transaction.
It is quite clear right now that blockchain technology will not be going away anytime soon, and hence all digital marketing companies need to know how it is changing their industry. So, let us take a look at the sectors of digital marketing that have had the most impact.
The most common way digital marketing operated was by collecting personal data from online users and then trying to sell them the product relevant to their data. This data was collected in the form of IP address, cookies, etc. and also their email address. But this posed a serious problem for the user, i.e. their personal data was now widely available in the market for any advertiser to use. Blockchain provided the solution to this by providing an additional layer of security to every platform whereby the users could restrict the amount of data they would want to share with the owners of a particular website they are visiting. Additionally, they can also withdraw any information that had been collected from them previously.
The world of digital ads had become a staunch monopoly between Google and Facebook. And since these two platforms own most of the internet, they were able to show their ads anywhere and anytime. This not only became highly disturbing for users but also costs them with data and time, alongside slowing down their browsing speed. Brave, the blockchain based browser has brought forth a solution to this with a technology that is being called ‘basic attention token’ (BAT). This changed the way users view and interact with ads, and as a result, all digital marketing agencies are now trying to develop BAT friendly adverts.
Removal of middlemen
Digital marketing strategies were heavily dependent on middlemen for their marketing purposes of any kind. These middlemen were usually the website owners who allowed marketing brands to run their operations on the website. But with the introduction of blockchain technology in advertising, the need for middlemen is no longer a viable one. The technology here serves as the middleman, and thus removes any chance of an unfair transaction between the two. While this does limit certain aspects of digital marketing, it allows for a much more transparent process which had been at stake within this industry.
Building trust between user and platform
One of the reasons why digital marketing did not always work is because the number of adverts is too many. Any regular internet user sees a ton of advertisements every day while surfing the internet, and as a result, ends up not believing any of the content in these adverts. But once you cut down the unnecessary products being dangled in front of all the users, they will eventually see and trust the adverts being shown to them. So, with the help of this technology, the job of digital marketing can become much more optimized, and with a clear direction towards advertising the products or services.
The entry of blockchain into the digital sphere had caused much ruckus in the beginning, mostly because people did not really know how to react to it, or even understand it properly. But with time, this technology is enveloping the various service provision sectors within the internet, and also creating a blanket of transparency between user and service provider. The impact of block-chain technology in digital marketing is not to be taken lightly at all as it can facilitate various developments such as the ones mentioned.