Interest in blockchain technology is growing exponentially and new applications are emerging almost daily. While it still takes time for the disruptive power of this technology, on which crypto currencies are also based, to unfold, digital marketers in particular should follow its development. We explain 10 application examples of how the blockchain can be used in digital marketing.
The blockchain is currently one of the most important trend topics in the digital industry.
Ten years ago, the world’s first crypto currency was developed under the pseudonym Satoshi Nakamoto: the Bitcoin Core, as the first form of Bitcoin. The fact that Nakamato developed a currency as the first proof of concept for blockchain technology has led to the fact that the financial sector in particular has so far dealt with this topic. In fact, the possible applications are much more comprehensive than we can imagine at the present time.
The interest in blockchain is growing exponentially and new blockchain applications are emerging almost daily. 55 percent of German companies are of the opinion that the blockchain will be of great importance for the competitiveness of the German economy in the future. This was the result of a Bitkom study. According to the Federal Association Bitkom, the blockchain is one of the 10 most important trend topics in the digital industry.
Supporters of the Blockchain already speak today of an Internet 3.0 that could revolutionize all industries and will have a massive influence on our social life. Of course, this will not happen overnight. But if the bank is no longer necessary as an intermediary, why shouldn’t this also apply to other areas? The blockchain stands for a transparent concatenation of data records, which makes classic inspection authorities superfluous.
In this way, not only currency systems can be replaced, but complete media and marketing processes can also be handled. If, for example, product information were to be understood as the currency of a marketer and platforms such as Google, Facebook and the like have so far taken on the role of intermediaries between potential customers and companies in order to play out marketing campaigns, for example, the platform giants could lose their monopoly position in the long term.
What is the blockchain?
As with Bitcoin, all other digital currencies are based on a common technology: the blockchain. This is a digital ledger system in which transactions are recorded. This means that individual parts (“blocks”) are connected firmly and inseparably and cannot be manipulated at the end to form a chain. Although the Bitcoin payment system is also a very exciting field, it is above all the technology behind it that makes the disruptive trend so revolutionary.
The idea of a decentralized network that is not controlled and managed by one or more specific organizations can be crucial for the future of many industries. Blockchain means above all openness, transparency and democracy. It is the radical application of the ideas of Open Source. In addition to the financial industry, blockchain technology could also free the digital industry from mistrust, prejudice and deception.
What potential does the blockchain have for digital marketing?
At the beginning of digitalization, the net was open and democratic for everyone. The Internet 1.0 was used in particular to enable researchers to exchange information with each other. Functions such as e-mail and the WWW also existed at that time via an open, democratic protocol level. With the commercialisation of the Internet after 1995, the basic services of the protocol-based Internet were no longer sufficient. Companies were thus found to offer the services demanded: e.g. Google, Facebook and Amazon, which are currently among the most valuable companies in the world. Their monopoly position is currently increasingly unsettling people and poses enormous challenges for companies and politicians.
This increasing insecurity is also a concern for digital marketing: marketers are currently having a hard time when, for example, Facebook scandals regarding privacy and data security continue to fuel scepticism about the digital advertising landscape. This is because people increasingly have no control over the tracking of their data. The blockchain has the potential to regain people’s trust by, for example, creating competitors to the large platforms that are open, transparent and democratic, as in the Internet of the first generation.
How can marketers use the blockchain in digital marketing?
The possibilities how people can use blockchain technology are almost as diverse as the possibilities to use the Internet. At the present time, no one is in a position to predict how the blockchain-based, decentralized system could revolutionize the communications industry and thus also marketing. There are already many ideas, but concrete applications in marketing and advertising are still rare. As the past teaches, it will be early adopters, creative thinkers and pioneers who will and must find applications.
In the following we present 10 application examples for blockchain technology in digital marketing:
Better data management and user privacy
Data is the lifeblood of the digital advertising ecosystem. Those who have data have an advantage over those who have no data. So it’s no surprise that there is increasing research into how the blockchain can help overcome data challenges and problems. For example, the issue of data misuse, which is one of the biggest problems in data management.
For example, Comcast, the largest cable operator, believes that crypto-currency technology has the greatest potential to shine. Because the blockchain encompasses what everyone wants in data management: Information that is delivered completely transparently. The data stored in the blockchain shows exactly who did what and when, with a complete history. And this process is checked and cryptographically secured by all parties involved in the network.
Direct-to-Consumer Digital Marketing
Due in part to the increasing fear of data misuse, many brands are now looking for direct connections to customers and want to avoid intermediate instances. This could be achieved with the help of blockchain. It offers the possibility to manage transaction data in a highly decentralized way. The blockchain eliminates the need for an intermediate instance for transactions. The decentralized system of the blockchain creates a direct connection between consumer and company or publisher by selecting the amount of data you want to release to the advertiser. Until now, the large platforms have taken the position between customer and company, winning the reader over. Traditional publishers in particular could benefit from this approach.
More commitment and better target group appeal
For years, advertisers and the platforms they work with have been investing in finding options and obtaining data that allows them to play the right content to the right user at the right time, encouraging the user to take action. The blockchain technology could possibly serve as a basis for new targeting and interaction models. The biggest example so far is the Basic Attention Token/Brave Browser. You can find out what this is all about and how it could help digital marketing in this YouTube video, for example. In addition, BitClave, for example, is working on making the playback of ads based on blockchain technology even more effective.
This is done through consumer activity tokens that consumers earn by making their personal data available to the blockchain. When users perform a search query on BitClave’s decentralized search engine, companies must