Blockchain is a buzzword these days. After the hype of Bitcoin or cryptocurrency as a whole, Blockchain has achieved new heights. But what is Blockchain?
It is a new technology introduced to store data more securely. It contains blocks, which contain records, and these records are joined together using chains, which are public databases storing all the information.
Blockchain extends features like transparency, accessibility, and security which are making it a more popular technology to adopt in Digital Marketing, and thereby, more and more companies are turning their faces towards using blockchain marketing services.
Listed further in this article are some benefits of having Blockchain in digital marketing.
Many brands tend to collect user data, but without them knowing the way data is collected, what data is collected, and how it will be used. However, this dilemma of people ends with Blockchain.
This new technology introduces transparency in the whole process. It is taking the marketing and advertising industry to a new environment where users will be able to own and sell their data directly to advertisers and company owners, which will ultimately give control to consumers over their data and its usage. It also compels firms to use customers’ data properly and with honesty.
Acquiring the trust of consumers has always been a great participant in a company’s success, and it has always been hard to take over. With the introduction of this technology, the control over user data is transferred to the user, which will eventually help in making users’ confidence in the brand.
The second most important aspect of Blockchain is its immutability. Once the data is recorded, it goes through the process of encryption and thereafter, becomes immutable. Once the recorded data gets verified, it cannot be changed.
Most importantly, each block has an identification code, called ‘hash’, which is unique for every block. When someone tries to get into a block by unauthorized means, then, not only the data but also the hash code of its previous blocks also gets changed. Anyone attempting to attack the blockchain must change records at each node, which is almost impractical. Thereby, providing additional data security, which is again a major trait of blockchain marketing services as it adds up to building user trust.
With Blockchain, retailers and advertisers may be linked, giving data transparency, clicks, and interactions, reducing fraud, and removing the middlemen. Data from digital advertising initiatives might be imprecise at times, thereby leaving less scope for improvements. With Blockchain, it is possible to monitor marketing activities in real-time and collect reliable information. By having more accurate stats, marketing strategies can be built accordingly, leading companies to drive more profit from more improvised ad campaigns.
The evidence for the same can be interpreted from the fact that top companies like Unilever and Toyota are applying Blockchain technology to their marketing campaigns for more efficient and productive data.
In a centralized system, all the data is hosted on the server. You, as a customer, have to communicate with the server to get the required information. Centralization introduces the concept of middleman, which facilitates communication from client to server. Therefore, all your information is transferred to the middleman, and the chances of data breaches increase.
While, on the other hand, blockchain follows the concept of decentralization, in which a peer-to-peer network is established, which eliminates the role of middleman or third-party applications.
You must be wondering, how is it related to blockchain marketing services?
If the sites using this new technology increase, then we as a marketer would not be able to easily collect users’ data, and it will not be hosted in any server and thereby, needs to look up for different and more reliable means of data collection.
As a marketer, you must be aware of frauds of false clicking on ad campaigns by the means of bots. In order words, it is a practice where humans or a computer program, known as bots, clicks on advertisements while impersonating a real user, and is known as click fraud. This practice is often adopted by site owners to increase ad income. By using blockchains, it is ensured that the impressions on the ads are legitimate and are by authentic users only.