Blockchain is a disruptive technology but most people can’t yet figure out how it will influence their own industry. Online marketing, for example, is also a target for this new evolving online technology. If I would do a sales pitch about blockchain to online marketers it would be something like this:
Blockchain technology will be the answer to lack of transparency, ad fraud, and discrepancy. It will offer a single approach solution for brands, agencies, publishers, and platform troubles.
At this point in time, with no existing use case in this technology, this would be a very bold but unrealistic point of view. However, in the near future blockchain technology has promising potential for certain advertising use cases. To come to this point this new industry has to educate and bring knowledge to its new users.
Online trends and blockchain marketing
We are living in a rapidly changing digital world today and are forced to keep on learning no matter what your age currently is. Of course, this rapidly changing environment comes with a lot of opportunities, but one has to avoid to chase every new shiny object that comes at our path.
Blockchain technology is still in its infancy but online marketers should spend some time to teach themselves more about this technology. So how are the key players in the market thinking about blockchain marketing and should this trend be taken seriously?
The future is private
Yesterday(1 May 2019), the bigshot online company called Facebook, held its annual F8 conference. At this conference, the CEO comes to the stage and do a lot of announcements containing their marketing and business strategy. Mark Zuckerberg and his Facebook team have a lot of data collected in the past about their online users. Also, they have noticed the impressive growth of the entire cryptocurrency market. One could say these two business models are a bit contradictory because they are handling private data in a totally different way.
Announcements and blockchain marketing
One of the announcements made concerning data was a statement of Zuckerberg containing “the future is private”. Should I believe Facebook in this? At first sight, this is very hard to believe from a CEO of a company whose business model is dependent on data of their users. Giving it some thought, I think we have to take this statement very seriously and one of the reasons is that the company owns tons of data to analyze.
This gives them a head start in signaling trends compared to other big companies. Also, almost two months ago, it was in the news that Facebook was working on its own cryptocurrency and was talking to some big exchanges about listing.
Combining this two events about Facebook, and it comes totally clear what this bigshot company thinks about the future of blockchain technology and cryptocurrencies. Now that we know that Facebook takes this new technology very serious, what impact would blockchain marketing have on the traditional market?
How does Blockchain Marketing differ from traditional marketing
- Elimination of middleman(third party) – Currently, if a company wants to run ads online it has to deal with third party companies like Google or Facebook. One has to pay some fees to be able to run ads on their advertising networks. A blockchain network which only facilitates and has zero fees would eliminate this.
- Real transparency – Blockchain technology is famous because of its open technology. Also the data available on their network is open and traceable.
- Trust creation – With this open environment of data sharing comes trust creation. Companies can check on the blockchain if the seller party, for instance, is really the legit seller.
- Smart contacts(organizations can be hold accountable) – With blockchain technology comes no more hiding of responsibilities by companies. Digitized smart contracts can be created to document responsibilities in code and organizations can thereby held accountable.
- Users are in control of their own data – Blockchain technology brings the power back to the users on the network. Users are in control of what data they want to share and in return they could be incentivized.
- Benefits for branding – Companies jumping on this technology are currently seen as “innovate” and “forward-thinking” organization. This could give them a head start in branding and PR by moving to the blockchain.
Private data handled by companies nowadays
Nowadays, when you type in search keywords on Google, Youtube and Twitter or even WhatsApp, all your data is being saved by third parties. These companies do this to analyze your spending pattern, to store your interests and what other things your search for. If people go online the first things that happen when they visit sites is being targeted by personalized ads. These ads are based upon data you have been doing online in the past. All these activities of collecting our data by third parties we consider it as quite normal and is being part of spending time online.
These tactics to collect our data is used by big companies and they spend a fortune to find out what topics we like and what dislikes. Also, these companies like Google and Facebook have been grown so hard that there isn’t much competition left. Economists call this situation monopolistic and consider it as a bad thing for open markets. Of course, there are organizations who don’t agree with this and threaten with lawsuits but unfortunately without any good results. So with these big companies in charge how can blockchain marketing have an impact on this?
The future impact of blockchain marketing
Blockchain marketing will create a win-win situation whereby internet users are compensated for giving their information. This sharing of data will give advertisers the possibility to target marketing campaigns back to them.
This young startup has created a blockchain-based search engine that allows businesses to reach out to them for compensation. In other words, users are getting paid in cryptocurrency for sharing their personal data. The idea is to get the user back in control about their personal data and what to share and also incentivize them for it. This new development in online marketing will give small start-ups a chance to compete with giants like Facebook or Google.
Currently, online marketing companies still have to deal with big companies like Facebook and Google to start an online marketing campaign. With the heavy growth of blockchain technology and cryptocurrencies, a new opportunity is underway. Facebook is currently researching its online strategy model for online marketing.
Mark Zuckerberg is taken this blockchain technology very seriously and is working on a change on strategic level of handling private data of their users. Companies who are in the online marketing business should take this new trend in blockchain marketing seriously and education in blockchain technology could give them a head start.
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