Blockchain is often associated with Bitcoin and by many wrongfully considered as a synonym. But blockchain today is a lot more than that. Read on and learn more about the ways this technology is rapidly gaining momentum in the way marketing is done. Let us know your thoughts by reaching out via this contact form!
What is blockchain?
Blockchain is a distributed and decentralized type of database. This means no company or single entity owns the system, yet everyone can use it and contribute to the network. The data stored on this growing network of computers, cannot be changed or manipulated. The blockchain network offers two main benefits.
The first one is security. The set up of the network prevents fraud and unauthorized activity with the data.
The second benefit is transparency. Because the blockchain network is distributed, all data are identically stored across multiple computers. This implies that all contributors to the network can access the same information at the same time. This provides full transparency on the network.
How can this be used for marketing?
One of the main challenges today in digital marketing is the dominant position of the GAFA (Google, Amazon, Facebook, Apple) when it comes to data and online advertising. The decentralized properties of blockchain enables new models where consumers become owners of their own data. Thereby, they get compensated for it, instead of entrusting it to companies like Facebook or Google. Cutting out these middlemen benefits the customer who regains control over his data. In addition, the companies can reduce the price of online advertising and increase the customers’ data quality. Giving customers control over their data means they can choose to exclusively receive ads from specific companies they are interested in. Meaning that marketing budgets can be used much more efficiently.
When can we expect this transformation?
Blockchain marketing is still in its very early stages as we speak. However, the world of (digital) marketing has always been fueled by a combination of technological innovations and creative people who have found ways to implement these innovations. So, it is only a matter of time before we start seeing the first widespread implementations of this technology and a multitude of new applications for it.
A first example of widespread blockchain marketing is the Brave browser. This browser empowers and rewards users by making small virtual payments in exchange for their attention online.
About the author
Alexander is a young digital marketeer driven by ambition and eagerness to learn. He is currently working as a Marketing Consultant at 4P square, a leading sales & marketing consulting company, by helping companies to reach their marketing goals.
Want to know more about Alexander? Feel free to start a conversation with him on LinkedIn.