For companies to survive and thrive in today’s digital world it’s essential that they effectively advertise on online platforms. There are a plethora of social media channels to do this – each with millions of daily users, providing a mass marketing opportunity.
This, coupled with the rise of influencers, provides a different avenue for companies to reach consumers. Experts are predicting significant changes in the marketing world, as a recent technological advancement called blockchain looks set to interrupt the way digital marketing happens across all platforms, resulting in fewer, more reliable influencers. That’s a good thing, right?
So, what is blockchain?
First, let’s look at how blockchain works. Blockchain is a technology that is set to revolutionise the digital marketing world. In a world where the President of the US regularly cries ‘Fake news’, Blockchain is designed to increase transparency by holding information digitally. So what does that mean exactly? In layman’s terms, information that is stored digitally cannot be edited or deleted. Therefore, companies will be able to view the exact journey of their funds and whether they reach the intended audience.
The Impact on capturing data
Privacy has become a serious issue for consumers. British Airways have been involved in a scandal recently, where almost 245,000 customers credit card details were stolen during a 15-day security breach. One of the biggest predicted changes expected to accompany blockchain technology is how consumer data is shared. With many websites automatically collecting information about consumers, people need to understand what happens online is not private. Blockchain technology protects personal information; giving users the power to determine how much data they share. This will cause significant changes to how companies collect information about consumers, forcing them to create strategies to entice consumers to share information.
How adverts will be affected
Blockchain-powered software called Basic Attention Token (BAT) is designed to change the way advertisers, publishers, and users interact. Using BAT for digital advertising involves a three-step process:
- Advertiser’s buy ads. The advertisers can buy ads on the Brave platform, which holds BAT.
- Users choose which advertisements they want to see. This prevents consumers from being overloaded with irrelevant and uninteresting adverting. If a user volunteers to see an ad, they are paid a small percentage of what the advertiser paid to buy the ads.
- Publishers are also incentivised by BAT, receiving a larger portion than consumers.
Blockchain technology in BAT will result in more personalised digital marketing. Users won’t be bombarded with advertisements. Using blockchain allows users to receive personalised advertisements without the loss of privacy of their personal information to applications and companies.
Fewer, more reliable influencers
The rise of social media has led to numerous influencer run accounts and profiles with large numbers of followers. Many companies have capitalised on the power of these influencers, by using them to promote their brands on their personal accounts. The problem with using influencers for marketing is that many of these ‘stars’ have a large number of bots as followers, giving the impression they are hugely popular, whereas the reality is that only a small portion of their ‘followers’ are real people.
Blockchain technology will provide companies with the ability to see if an influencer has real people or bots as followers. This feature will significantly reduce the number of influencers by eliminating the ones without a real following. As a result, the influencers that are left will be the ones who have an organically grown audience and have a genuine impact on a large group of people. This technology will boost confidence for companies who partner with influencers, safe in the knowledge that the relationship will have a real impact on their success.
Are you a business looking to increase the effectiveness of your digital marketing and boost your number of inbound leads? Take our test HERE to see how your business ranks: