Blockchain on Marketing and Advertising

• Blockchain Council
• August 27, 2024

Blockchain in Advertising

Blockchain technology is revolutionizing the advertising industry by introducing greater transparency, security, and efficiency. With blockchain, every transaction in the advertising supply chain is recorded on a decentralized ledger, which is immutable and accessible to all parties involved. This transparency helps in combating ad fraud, ensuring that advertisers only pay for genuine impressions and clicks. Additionally, blockchain enables more accurate targeting and measurement by securely sharing user data and engagement metrics while maintaining privacy through encryption. Smart contracts on blockchain automate and streamline the ad buying process, reducing the need for intermediaries and lowering costs. Overall, blockchain is poised to create a more trustworthy and efficient advertising ecosystem.

Blockchain Marketing

In simple words, Blockchain marketing is a cutting-edge strategy for online advertising that employs the prowess of Blockchain technology. Blockchain is a distributed database that enables safe, open, and unchangeable transactions. Due to its capacity to allow firms to monitor data migration and guarantee its accuracy, Blockchain marketing has placed itself as an ideal marketing tool.

The future for digital marketing looks promising with the proliferation of digital resources and decentralized technologies. Technology has managed to leave an everlasting impact on how businesses operate. Digital marketing and advertising have been at the forefront to experience the power of Blockchain technology in triggering a change. Marketing paradigms are shifting towards a more liberal, open-source, and user-centric ecosystem. This is why Blockchain Marketing is gaining much-needed popularity in the marketing and advertising hub. The concept justifies all the parameters required for setting up an efficient, advanced, and profitable marketing cluster.

What makes Blockchain Marketing Important?

In traditional digital marketing, businesses frequently depend on outside agencies to seek goods or services. These third-party organizations may or may not have the prerequisites such as time, money, and experience in their kitty. This makes it impossible for them to guarantee top-notch services to the purchaser. Due to such incompetencies, many companies lose money on these marketing initiatives.

In earlier incidents, advertisers filed lawsuits against several social media platforms for inflating video views and ad analytics, causing additional fees for the inflated and tapered data. Due to its decentralized nature, Blockchain technology will stop such abuses because information corruption is impossible in a decentralized environment. To get campaign data, campaign managers won’t ever need to interact with advertising outlets, nor would they require background checks or references on advertising vendors. The validation and upfront display of all pertinent vendor information eliminates the possibility of misrepresentation and trust-building efforts.

We learn about data breaches every day that digital ad suppliers bring on. Secret cookies that we unwittingly allow are continuously watching us. According to some reports, advertising losses were projected to total $42 billion in 2020 and $100 billion by 2023. Blockchain marketing has ensured accountability for users when presenting commercials and paying for genuine human interactions on ads rather than robots.

Blockchain Marketing is emerging as a key player in the mad race for innovation and development. However, it also has the ability to alter the way users interact with their gadgets and make online purchases. With this in mind, tech experts are working on new marketing strategies. Special emphasis is being given to security and transparency requirements. The use of Blockchain technology helps users to enjoy full control over their data. On the other hand, firms get ample opportunities to expand their customer base without sabotaging customers’ privacy.

Potential Use Cases for Implementing Blockchain Marketing

It sometimes becomes difficult to figure out how to learn Blockchain implementation in the field of digital marketing. This is why we are presenting a list of the top use cases where Blockchain is revolutionizing the marketing space. Have a look:

Influencer Marketing

Influencer marketing is one of the most popular trends for millennials presently. Youngsters are ushering to showcase their talent and reap the benefits of the burgeoning industry. Contextual marketing, which focuses on a specific audience segment or makes significant investments in micro-influencers and celebrities, has been on the swing for quite some time. Despite all the glitter, influencer marketing has its own share of drawbacks. The list includes a lack of a transparent working system, fake followers and intrusive engagement, and problems tracking the ROI.

Influencer marketing will transform into a better state when introduced to the perks of Blockchain technology. This solution addresses the issue of transparency by integrating smart contracts and decentralized tools into the core ecosystem.

Smart contracts facilitate accuracy in payments. These digital contracts ensure payouts only when a predetermined task, agreed to by the involved parties is completed successfully. The influencer’s credibility and performance may be easily verified thanks to Blockchain technology. An ethereum developer creates a smart contract for the digital marketing hub so as to avoid breach of contracts between the parties.

Lucrative Loyalty Programs 

Customers sign up for loyalty programmes because of their genuine love for the brand or to attract juicy discount offers. The issue with such a programme pops up during users’ redemption of the earned loyalty points. Here, instead of being a profitable junction for firms and customers, it sometimes becomes unfavorable for either or both parties. Users fail to maintain track of the points, and firms get to bear the burden of an unforeseen liability on their part.

The use of Blockchain technology for loyalty programmes will carve a robust system with a streamlined interface. Due to the decentralized nature of Blockchain, several businesses can join together to grant customers the ability to use their points with any brand on the network. Additionally, users can redeem their loyalty points while on the go, thanks to the real-time availability of these points, benefiting the entire ecosystem.

Affiliate Marketing 

Affiliate marketing has become a potent source of income for firms and individuals. Though, expenses in the sector are, unfortunately, higher as well. According to reports, affiliate marketing costs the US economy roughly 6.4 billion USD annually. Blockchain technology will make affiliate marketing more profitable than it has ever been.

Blockchain can help users to avoid wastage of money on commissions, dealing with shady affiliates, and visiting sites with little to no added value. The Infusement of cryptocurrencies into the system will streamline the payment process, making it more accessible, feasible, and safer for all.

Normally, the affiliate network withholds payouts until a user exceeds the minimum threshold; however, this is not the case with Blockchain products. On the other side, smart contracts minimise the risk of ad fraud and provide a much-needed guarantee to the participants. Ethereum Blockchain developer hub deploys smart contracts to ensure transparency within the system.

Transforming Email and Affiliate Marketing

Blockchain technology is revolutionizing the digital marketing landscape, particularly in email and affiliate marketing sectors. By ensuring data security and offering incentives for viewing ads, Blockchain enhances user engagement and trust. Users can opt-in to view ads in exchange for digital currency, addressing ad fatigue effectively. Moreover, Blockchain’s ability to secure data and provide transparent, reliable marketing campaigns enables brands to gain consumer trust more easily. For businesses, Blockchain facilitates accurate lead generation by allowing consumers to share their data directly, incentivized through various means, thus ensuring more effective marketing strategies​​.

The Impact of Blockchain on SEO and Video Production

Blockchain’s role in SEO and video production revolves around its capability to authenticate and secure content, improving transparency and trust. While direct information on its impact on SEO and video production is less discussed, the principles of Blockchain regarding content authenticity, security, and user compensation for engagement can be extrapolated to these fields. Enhanced security and trust could lead to more reliable and verifiable content, potentially influencing SEO rankings and video content authenticity.

Innovations in Ad Verification and Loyalty Programs

Blockchain technology significantly contributes to innovations in ad verification and loyalty programs. It offers a transparent, secure, and efficient approach to digital marketing, reducing the activities that don’t add value. Blockchain combats click fraud by creating a trustworthy digital marketing environment, preventing the manipulation of ad clicks and ensuring the integrity of campaign data. Furthermore, Blockchain improves transparency and trust in marketing environments, enabling consumers and brands to collaborate in a secure ecosystem. 

This technology also provides better security for digital marketing campaigns, reducing privacy concerns and enhancing the reliability of online transactions. In affiliate marketing, Blockchain ensures more secure and efficient transactions, automating payments through cryptocurrencies and using smart contracts to automate the enforcement of agreements between advertisers and affiliates. This not only reduces the potential for fraud but also streamlines the payment process, making it faster and more reliable​​​​​​​​.

Revolutionizing Content Marketing through Web3

The shift towards Web3 introduces a new era of marketing where decentralization is key. This transition allows for more transparent and direct communication between brands and their audience. By leveraging Blockchain technology, Web3 ensures that data remains private and secure, granting access only to users. This fundamental change requires marketers to focus on building relationships through direct interactions and public engagements on social media platforms. Transparency in marketing tactics becomes paramount, emphasizing the importance of treating prospects as individuals rather than mere numbers​​.

Leveraging Immersive Virtual Experiences

Web3 also opens up avenues for creating immersive virtual experiences, utilizing AI and machine learning to engage consumers, stakeholders, and employees in novel ways. The advent of the metaverse, a virtual world enabling interaction through digital avatars, presents unique opportunities for brands to connect with their audience. Although the metaverse’s marketing boom might be more pronounced for B2C brands, B2B companies should not overlook the potential of digital presence, virtual storefronts, and hosting virtual events as part of their strategy​​.

Powering Content Marketing with Web3

The decentralized nature of Web3 empowers content creators and marketers, offering them more control and fair compensation for their work. This environment promotes an equal playing field where quality content is recognized and rewarded, encouraging both organic and paid content strategies. The shift towards a more open ecosystem promises greater visibility and opportunities for content to be seen and appreciated​​.

Building a Sense of Community

At the heart of Web3 marketing lies the focus on community. The move towards data decentralization requires brands to earn consumer trust anew, prioritizing what they can offer to their supporters. Strategies involving hybrid events, NFTs, and virtual experiences can help brands explore various ways to engage their audience, emphasizing individualism and building community through tailored content and experiences​​.

Innovative Web3 Marketing Strategies

Web3 marketing strategies emphasize the importance of community building, transparent data handling, and innovative engagement platforms. Brands can establish authority by participating in Discord servers, Reddit subgroups, and DAOs, engaging in community management, and leveraging influencers within these niches. Marketers are encouraged to explore decentralized social media networks and marketplaces for advertising, moving beyond traditional platforms. Strategies also include focusing on permission-based data sharing and leveraging “earn as you engage” incentives, utilizing Blockchain to tokenize loyalty points and rewards, and adopting crypto-native metrics for measuring success​​​​.

Perks of Using Blockchain Marketing

The various benefits of using Blockchain-powered digital marketing and advertising are:

Enhanced Security Standards

Data security is one of the top concerns for those who are frequently involved in online purchases or the sale of things. The e-Commerce sector heavily depends on digital marketing, posing a threat to data security and safety. Both buyers and sellers are concerned about the security of their personal and financial data.

Blockchain’s decentralised environment ensures critical data security, as the latter uses encryption as a safety resource. The participating nodes verify the transactions on a Blockchain. Each additional transaction is openly accessible to all the participants. Blockchain ensures immutability, meaning no alterations can be done to the stored data. The participants are also anonymous because Blockchain strives to offer full privacy to its users.

No interference in buying ads 

This is yet another important benefit of Blockchain for online advertising. Businesses want to ensure that the advertisements they purchase and post are on reliable websites directed at their specific target market. However, doing so entails making a one-time payment to outside parties with the reputation that website owners and businesses value. It is also a process of developing trust.

Blockchain allows businesses to avoid the ad network and save a tonne of money while still maximising digital advertising. Individual user verification will take place automatically with the technology, so one won’t need a third party. It is possible for businesses that place the advertising and websites that publish them to easily cooperate and work together.

Customers serve quality information

Marketers like to control their personal information. However, issues arise when they register with a company and see advertisements from other organisations.

The use of Blockchain technology will help users to charge for their contact data. Additionally, the technology can also guarantee that the users receive data from only those organisations in which they are interested. This characteristic will enable the intake of only precise and focused information from exclusive and trusted customers.

Image Building through Trust Building

Being distinctive is never easy for small firms, particularly with established players in the market. Many trustworthy businesses fail to capture the attention of suspicious and uneasy customers because of their small size.

Blockchain technology will help these companies establish trust more quickly and with less effort, no matter how big or how long they have been in the market. With the help of Blockchain technology’s transparency, firms will be able to show every stage of the supply chain and the origin of their items. The availability of comprehensive information about the company can draw potential clients and encourage them to choose the brand over competitors. When firms gain customers’ trust, they are bound to expand their share in the market.

Multiple Payment Support

Accepting alternative payments in the form of Bitcoin and other cryptocurrencies has become possible via Blockchain technology. Soon, crypto payments will become mainstream in the marketing world. Retailers won’t have to worry about credit card fraud, faked checks, or other chargeback difficulties because crypto payments will be totally transparent. Eliminating intermediaries such as banks will expand savings while ensuring full transparency and safety of funds.

This is especially important when it comes to chargebacks, which are happening more frequently as online shopping becomes commonplace. According to the latest chargeback stats, more merchants are accepting alternative payments to cut back on friendly fraud. Buy Now, Pay Later programs are incredibly popular and are now an option for 27% of merchants

Issues Related to Blockchain Marketing

Undoubtedly Blockchain marketing offers a variety of benefits to the digital marketing space. Although, just like any other concept, it also has some downsides as well. A major issue that comes to light here is how a company can control data despite being in a decentralized ecosystem.

Additionally, some marketers claim that Blockchain marketing is not as financially successful as expected. Blockchain implementation in digital marketing might be quite expensive. Most Blockchains need the Hyperledger feature, which necessitates a substantial expenditure.

Along with that, Blockchain mining requires high energy consumption along with expensive equipment. For digital marketing, this may not be a good option. Interestingly, these issues, dangers, or difficulties can be resolved through various techniques when the digital marketing and advertising sector implements Blockchain technology.

Real-World Examples and Success Stories

IBM and Mediaocean Partnership

IBM has leveraged its Blockchain platform in collaboration with Mediaocean to refine the advertising supply chain, offering marketing teams enhanced data insights. This initiative aims to reduce unnecessary spending and expose fraudulent data by providing an end-to-end ledger that tracks ad transactions​​.

NYIAX: Advertising Contract Trading

NYIAX has introduced the world’s first marketplace for trading advertising contracts, utilizing Blockchain in partnership with Nasdaq. Their “Financial Matching Engine,” backed by Blockchain, verifies and connects quality advertising contracts for trade or sale, benefiting both advertisers and publishers​​.

Verasity and Ad Fraud Prevention

Verasity tackles ad fraud through its VeraViews platform, employing Proof-of-View technology to ensure legitimate ad engagement. This Blockchain solution offers real-time transparency, aiding publishers in securing prompt payments​​.

Ambire AdEx Platform

Ambire AdEx operates a free platform for advertisers and publishers, featuring real-time reporting and eliminating intermediaries to enhance publishers’ earnings and give advertisers valuable insights​​.

Loyyal: Enhancing Loyalty Programs

Loyyal uses Blockchain for expanding customer loyalty programs across various industries, including travel and credit cards. It allows companies to track loyalty tokens throughout the rewards process, enabling personalized promotions based on individual behaviors​​.

Guardtime: Securing Health Records

Guardtime utilizes Blockchain to create “keyless” signature systems, securing the health records of Estonian citizens. This approach enhances data security and patient privacy in healthcare​​.

Gem and Disease Outbreak Data

Gem collaborates with the Centre for Disease Control to place disease outbreak data on a Blockchain, aiming to improve disaster relief and response effectiveness​​.

Dubai: Aiming for a Blockchain-powered State

Dubai’s ambitious plan to become the world’s first Blockchain-powered state highlights the government sector’s potential to innovate and improve services through Blockchain technology​​.

Future of Blockchain in Marketing

The future of Blockchain in marketing is brimming with potential, characterized by a transformative shift towards greater transparency, security, and efficiency. As we look towards 2024 and beyond, several key strategies and impacts highlight how Blockchain technology is reshaping the marketing landscape. Here are a few:

• Social Media Marketing: Utilizing social media platforms is crucial for engaging with audiences and sharing timely updates about Blockchain projects. This fosters community participation and helps in building a strong online presence​​.
• Blockchain Paid Ads: Implementing paid ads can significantly increase brand visibility and target specific demographics, making it a vital strategy in Blockchain marketing​​.
• Content Marketing: Crafting informative content positions brands as industry authorities and educates the Blockchain community on various topics, thus driving engagement and community growth​​.
• Community Building: Establishing a vibrant community is key to fostering engagement and rallying support for Blockchain projects, enhancing product development and user satisfaction​​.
• Email Marketing: Direct communication through email marketing allows for sharing insights and updates, nurturing relationships with the audience​​.
• Blockchain SEO: Optimizing websites and content for search engines is crucial for improving visibility and attracting traffic to Blockchain projects​​.
• Affiliate Marketing: Collaborating with influencers and industry experts through affiliate marketing can expand reach and promote Blockchain offerings​​.
• Video Production and Press Releases: Creating engaging video content and issuing press releases can highlight a project’s strengths, enhance brand credibility, and ensure media coverage​​.
• White Paper Optimization: Crafting well-organized and clear white papers is essential for illustrating a project’s value proposition and attracting investors​​.
• Transparency and Ad Fraud Mitigation: Blockchain introduces a level of transparency and security in advertising, ensuring that ad impressions and clicks are accurately recorded, thereby reducing ad fraud and building trust between advertisers and publishers​​.
• Decentralized Data Management: By decentralizing data management, Blockchain enhances data security and gives users greater control over their information, which is crucial in an age where data privacy is paramount​​.

Conclusion

The ecosystem of digital marketing is positively and incrementally impacted by Blockchain technology. Tech giants like Google are enhancing the functionality of their solutions using decentralized resources.

The technology is playing a significant role in promoting zero tolerance for data breaches, data tampering, and fraud. Companies that integrate Blockchain into their advertising platforms are already moving a step further in this direction.

In totality, Blockchain marketing is a great approach to earning clients’ trust while preserving everyone’s online privacy. From a pragmatic and philosophical standpoint, Blockchain presents the idea of a fundamentally safe and reliable customer digital experience. Every time a new technology enters the public eye, doubts may be raised about its practicality and security. However, Blockchain technology has managed to prove its mettle. Though Blockchain marketing is still in its infancy stage, it’s essential to comprehend where the sector is going so firms can take the necessary steps to infuse it into their traditional systems.

If you are planning to learn about Blockchain technology, then Blockchain Council’s course programs can be your best source. The Blockchain certification offered here are designed to offer in-depth knowledge. The curriculum is designed to offer subjective and practical knowledge to the participants.

If you want to keep up with the trends of the Blockchain industry, join our communities on Discord, Reddit and Telegram.

Frequently Asked Questions

What is Blockchain marketing and how does it work?

• Blockchain marketing utilizes Blockchain technology to enhance security, transparency, and efficiency in digital advertising.
• It eliminates the need for intermediaries by facilitating direct transactions between advertisers and publishers.
• Smart contracts ensure accurate payments in influencer marketing, loyalty programs, and affiliate marketing.
• Blockchain’s decentralized nature ensures data integrity and prevents fraud in advertising campaigns.

What are the benefits of using Blockchain technology in marketing?

• Enhanced security: Blockchain’s encryption and decentralized structure ensure data security and prevent unauthorized access.
• Transparency: Transactions on the Blockchain are transparent and immutable, providing transparency in advertising campaigns.
• Efficiency: Smart contracts automate processes, reducing the need for manual intervention and streamlining operations.
• Multiple payment options: Blockchain enables payments in cryptocurrencies, offering flexibility and reducing transaction costs.

Can Blockchain marketing help prevent ad fraud?

• Yes, Blockchain marketing can help prevent ad fraud by providing transparency and accountability in advertising transactions.
• Smart contracts ensure that payments are made only upon the fulfillment of predefined conditions, reducing the risk of fraudulent activities.
• Blockchain’s decentralized ledger records all transactions, making it difficult for fraudsters to manipulate data or inflate ad metrics.
• Real-time monitoring and verification of ad impressions and clicks help detect and prevent fraudulent activities in advertising campaigns.

Are there any real-world examples of Blockchain marketing success?

• IBM’s partnership with Mediaocean aims to enhance transparency and reduce unnecessary spending in the advertising supply chain using Blockchain technology.
• Verasity’s VeraViews platform uses Proof-of-View technology to ensure legitimate ad engagement, combating ad fraud and improving publisher revenue.
• NYIAX operates the world’s first marketplace for trading advertising contracts, leveraging Blockchain to verify and connect quality ad contracts for trade or sale.
• Loyyal enables companies to track loyalty tokens on the Blockchain, enhancing customer loyalty programs across various industries and enabling personalized promotions.