Most people associate blockchain with Bitcoins or other cryptocurrencies, but this guide will educate you about other purposes that it serves as well. So let’s explore the exciting world of Blockchain in digital marketing and discover its different applications!
Table of Contents
What Is Blockchain In Digital Marketing?
Blockchain is like a digital ledger that tracks transactions from over a network of computers in a secure yet transparent manner. But it’s decentralized in nature.
A. First, let’s see the use cases of Centralized vs. decentralized Digital Ledgers:
- A centralized digital ledger would be more useful for banks, retailers, e-shops, government agencies, insurance companies, and corporate internal employee tracking.
- While a decentralized digital ledger would be more useful for cryptocurrencies, supply chain logistics, medical records, and voting systems.
B. Now, let’s understand the composition of each block:
- Transfer Data: It would cover details such as the code name of the sender & receiver, the amount of exchange, or the purpose and medium of exchange.
- Timestamp: The exact date and time when the transaction took place.
- Hash: A unique code to identify the block.
- Previous Block’s Code: To link all the blocks and ensure they look like a chain.
Impact Of Blockchain In Digital Marketing
Various characteristics of blockchain technology transform several components of the digital marketing ecosystem. These tactics cover several important domains:
1. Data Security With Blockchain And Digital Marketing
Blockchain promotes transparency while also ensuring privacy. Confused? Let’s deep dive!
- Even on public blockchains, transaction data will be visible to all the authorized participants, but not outsiders.
- With their encryption techniques, outsiders are unable to view the data.
- However, personal identities are sealed even for the participants because they use the unique identity codes assigned to them instead of names.
2. Transparent Insights From Ads
Blockchains produce transparent ledger where they reveal the clicks and impressions that an ad received. They also track the conversion amount for each metric. This encourages transparency while preventing fraud, ensuring that marketers interact with real data only. Thereby enhancing the ROI and other performance metrics.
3. Tokenized Incentive Structures
Blockchain makes it possible to create tokenized incentive models in which consumers who engage in marketing activities like watching advertisements, sharing content, or giving feedback are rewarded with digital tokens or cryptocurrencies. While generating new sources of income for publishers and marketers, these incentives increase user engagement and loyalty.
Blockchain platforms use a popular model known as “Airdrops and Giveaways.”
- Here, “airdrops” distribute tokens amongst the existing users, which encourages users to explore more of a given content.
- Whereas “giveaways” denote people who were successful in completing the task.
4. Decentralized Distributions
Blockchain systems reward every consumer with tokens for interacting with any marketing campaign on their platforms. These tokens are a form of digital rewards that encourage more consumer interactions. They are also tracked on the ledger, with rules specified on when they are earned.
Blockchain Role In Industrial Transformations
Here’s how multiple industries take advantage of blockchain technology and why they are the need of the hour:
1. Cryptocurrencies – Blockchain Digital Marketing
- Blockchain platforms laid the foundation for cryptocurrencies.
- Each crypto transaction is tracked through a public ledger that ensures transparency yet privacy owing to unique IDs.
- As there are no payment processors in between, it reduces time and increases the scope for cross-border payments.
2. Smart Contracts – Blockchain In Digital Marketing
- Here, the terms of the contracts are recorded in a codified manner.
- The ledger ensures automatic implementation of terms, reducing dependence on a middle-man.
- Without third parties or intermediaries involved, you achieve cheaper and faster smart contracts.
3. Healthcare – Blockchain In Digital Marketing
- Hospitals can use blockchains to store patient records in trustworthy and decentralized ledgers.
- No scope for hacking, as there would be codified language and restricted access.
- Each time the ledger is accessed, even those timings will be traced.
- Blockchains reduce the chances of human error and ensure that all the records are up-to-date.
4. Voting
- You can achieve tamper-free voting with this solution.
- Blockchain will register each vote as a unique transaction to ensure that there’s no double voting.
- Ensuring that voting takes place in a fairer manner.
Conclusion – Blockchain For Digital Marketing
Blockchain in digital marketing is a big thing. It increases transparency but in a safe and secure manner. It’s gaining momentum as it’s people across multiple industries are using it. To harness their capabilities, contact a seasoned digital marketer.
