Blockchain is an emerging technology that could shape the way people do business in the future. This digital method of recordkeeping tracks purchases made in bitcoin and other types of cryptocurrency. Anyone can view blockchain records within a given network, but they cannot edit or delete the records. This makes blockchain technology transparent but also secure and tamper proof.
Even though the future of bitcoin is uncertain, experts are confident that blockchain technology is here to stay. Let’s explore some of the ways that blockchain may influence digital marketing one day in the future.
More Accurate Data Collection
Anyone can use the internet, but they have to go through traditional ISPs and web browsers. Because of this, user activity can be tracked to a tee. Whether it’s an online search, a downloaded file or a purchase made, companies are able to see what people are doing online. This data can then be bought and sold to advertisers who use the information to market to their audiences. Blockchain could change this.
Using blockchain technology, user data would be encrypted and protected. It couldn’t be sold and bought by advertisers. In order to get information on user preferences, businesses would have to rely on data gathered from prospects and customers. Would this be more work? Yes. But, the information would be more accurate and reliable. Also, consumers would have more control over the content and ads shown to them.
More Control Over Digital Display Advertising
Digital display ads produce results for businesses, but they can also be expensive to manage and difficult to control. Businesses often lose money on display ads, especially because there isn’t much competition. Most inventory is controlled by Facebook and Google.
On the user’s end, display ads can be annoying and intrusive. If a user is enjoying an article and then interrupted by an ad, they tend to generate negative feelings toward the brand. Display ads have also been known to drain batteries and waste bandwidth. While display ads are somewhat effective, they have a lot of problems, too.
Blockchain is attempting to fix these problems by introducing Brave and BAT. Brave is a blockchain browser that has the ability to break up the current monopoly on digital ads. Let’s look at an example.
An advertiser buys ads using BAT (Basic Attention Token). They show these ads to users who gave their permission. The users are compensated with BAT that can be used for purchases, including access to premium content from publishers. Publishers earn money from both consumers and advertisers. It’s a win-win for everyone.
While we’re still a ways out from this happening, it’s a strong possibility that blockchain will impact how marketers collect information from their target audience. And, web users will be able to benefit from sharing their information, which will make them more likely to do so.
Greater Ownership of Digital Assets
If you have a subscription to iTunes or Spotify, you’re aware that you have to pay a membership fee each month to access the music. However, artists are only compensated a small fraction of this. In addition, licensing complexities mean that the proper payouts aren’t always made to the right people.
Blockchain could change this for the better.
Musical artists, filmmakers and photographers could offer their work to large audiences without having to pay for a middleman like YouTube or Shutterstock. As their music or artwork becomes more popular, the token value would increase as well. This would allow artists to market directly to their audiences without having to share their earnings with other platforms.
Does the Future Have Blockchain in It?
Blockchain continues to be a topic of discussion because of its transparency, improved cybersecurity and flexibility. Even though it will be harder for marketers to obtain data, the data they do collect will be more accurate and precise. Plus, the very thought of breaking up the monopoly on digital ads is a welcoming concept for most.
Over the last handful of years, we’ve watched augmented reality, virtual reality and artificial intelligence become more mainstream. Is it possible that blockchain could be next? For now, we’ll have to wait and see. But is the possibility there? Absolutely.