Blockchain technology is poised to disrupt various sectors with the digital marketing industry not being an exception. In this sector the technology is expected to revolutionize how digital marketing campaigns are deployed, consumed and understood.
Below we look at the impact blockchain technology will have on digital marketing in greater detail:
1. Smart contracts
With the blockchain technology firms or individuals are able to sign contracts which enhance accountability by making the exchange of shares or money transparent. Since there is no third party responsible for regulating terms of an agreement, payments are made only after the particular terms are met. This means that contractual milestones have to be fulfilled prior to moving to the next stage.
Ad networks are in the business of collecting data from their users before they then sell that information to advertisers. The collection of information is of course done using cookies. The blockchain technology now threatens to get rid of these intermediaries since publishers will be in a position to create their own networks.
At an advanced stage it will be possible for business enterprises to skip the process of buying ads entirely as marketers will be in a position to obtain the data from clients without having to use an intermediary.
This will be made possible by the use of micro-currencies which can be used by businesses to track various metric including actual audience attention. As a result businesses will get cheaper and easier access to customers.
Traditionally advertisers obtain data on their audience from disparate sources but with the blockchain the customer profile can be built using the data that the customer has shared willingly. This way it will be possible to create more effective customized ads. It will also ensure that digital advertising becomes more highly targeted.
In order for digital marketing to be effective, there has to be trust on the side of the consumers. The consumers especially have to trust the products or services that they are being sold and blockchain technology can engender this trust. Blockchain technology is synonymous with transparency as the ledger side of it is publicly available for all to access.
The fraud verification sector is also expected to employ blockchain to prevent fraudsters from stealing precious ad dollars additionally enhancing confidence in digital marketing.
4. Loyalty payments
With the blockchain technology it will be possible to ensure exact and real-time royalty payments distribution based on the smart contracts. Publications will also be in a position to track the consumption and usage of audiences using this technology.
Content platforms which make use of a blockchain will be able to preserve immutable and tamperproof records leading to transparency for both creators of the content as well as the consumers of the content.
Creators of content will also be assured that their work and reputation will not be negatively affected in any way while trolls will have a hard time since their history will exist forever.
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