Blockchain is a ‘distributed ledger’, a type of database. Currently, databases are owned by one party and updated by that party (eg a bank changing balances etc), making them a centralised ledger. Distributed ledgers are so innovative because they’re actually owned by a lot of people, who approve each other’s changes so that the entire database is up to date. This means that if someone hacks into a database, it can’t be changed as the others can just reject it.
Blockchain seems like it doesn’t really have too much to do with marketing, but in theory, it has the ability to change how marketers work with data, how they create and analyse ads, and can completely change a company’s entire relationship with the consumer.
Changes to social media
There is a growing number of decentralised social media platforms that are seriously changing up the game. Sociall, for example, are following the traditional social media model- with zero privacy concerns! Your data is completely in your control, you can choose anonymity if you wish, and your account will actually be deleted when you press that delete button!
Wildspark, another site, is currently in beta but offers another improvement from the status quo. You can read about this in more depth here: https://wildspark.me/learn_more
Summarised, this platform uses AMPs (essentially monetised likes) to:
- Increase the post’s visibility on the site’s homepage
- Distribute money between the creator of the content and the original amplifier (with the creator getting a much larger cut)
- Give out shares in the content, meaning if another person amplifies the post, they also get a cut (increasingly diluted for the sharer, but not for the creator)
This ensures only the most viral and entertaining videos will grow, putting the power back into the user and creator’s hands.
This new wave of social media will massively change marketing, but only if social media makes this shift to blockchain. Decentralised platforms are still only seen as a pipe-dream by many, but if they do grow to the size predicted, companies will have to shift their focus to complete transparency and actual high-quality content.
Data collection will also have to move in a different direction, which we’ll have a look at below.
Changes to data collection
Right now, data collection for marketing is straight-forward but doesn’t prove much in the grand scheme of things. More often than not, it involves checking the data of Facebook or Twitter or Google Analytics, segmenting the audience into a suitable size and running the campaign. This ultimately doesn’t yield reliable results or even consistent results.
Since blockchain transactions are decentralized, marketers have to go right to the customer for their data. Marketers can choose to pay customers or incentivise them in another way for this, or just hope they’ll do it for free. This might cost more but works for everyone, as it gives reliable and accurate data, and also gives the user something for their input.
This also warms up the leads before even selling a product. Having only willing users whittles the audience to those who are most likely to buy. This eliminates the need to cast a wide net and provides the company with the data of real people, not proxies.
A marketer in blockchain would also need to customize the UX on the specific things the audience is looking for, because it will likely allow users to pick and choose what type of content and ads they want to see. This is already common with good marketers, but will probably be a necessity in the future.
Eliminating The Middleman
There are a million and one e-commerce stores, but sites like Amazon and eBay do have a monopoly in this space. This could change hugely when the market shifts from centralised platforms.
In a blockchain environment, sellers don’t have to use platforms like these, and can even take more of the profit themselves.
A new blockchain software, OmniBazaar, is an online store boasting:
- No middlemen: Sellers and buyers contact each other and trade directly, reducing costs by 90-100%.
- No bank charges: Cryptocurrency payments are faster and less expensive than credit cards. Lower payment processing costs provide savings to sellers and lower prices for buyers.
- Purchases using Crypto: Cryptocurrencies are now easier to get than banking services. Anyone can “barter for crypto” using the OmniBazaar platform.
- Escrow service: OmniBazaar has developed a distributed escrow system. Buyers and sellers can choose a mutually-acceptable escrow agent from among rated volunteers. This provides protection for both buyers and sellers when the parties do not know each other.
- Instant transfers: OmniBazaar’s built-in currency, OmniCoin processes payments in 5 seconds or less. Sellers receive the money from escrow accounts as soon as the buyer completes the trade.
(taken from https://nulltx.com/e-commerce-platform-omnibazaar-eliminates-middlemen-and-banks-by-adopting-blockchain-technology/)
This eliminates the need for a middleman like eBay, all the while keeping the security they have, and reducing the costs for all parties involved.
Increasing Transparency
While the concept might be scary to some, blockchain ledgers are actually much more transparent than the ad and search engine networks we have today. All of the statistics from a search engine are publicly available and impossible to delete, so there’s really nowhere to hide for suspicious sites.
Think about how little data digital marketers actually have to work with when it comes to data on an ad, like clicks and other inconsistent measurements. The way Google works out its data is nice to see, but ultimately doesn’t mean anything. Because blockchain engines are more transparent, there is a lot more interesting and useful data that digital marketers can use!
Many blockchain technologies are created with the goal of providing more transparency for users. They go straight to them for data, don’t keep it or use it for suspicious activity, and most importantly- they keep them happy!
For marketers, there will be so much more data (and effective data!) to base campaigns on. Even though it’s a little more expensive, it’s real, it’s accurate and it’s legal.
I’m personally extremely excited for the blockchain revolution, are you?