Marketing Agencies Are Using Blockchain Technology to Get Ahead, Here’s Why?

While many of the services currently in use in blockchain technology are still in their early stages of development, they can provide various benefits to marketing agencies. Some of these include increased transparency, fraud prevention, and security. In this article, we’ll examine how marketing agencies take advantage of blockchain technology to get ahead. Let’s dive in:

Bringing Power to the People

Digital marketing has changed significantly over the past decade, but blockchain technology is about to change it even more. While most of us associate it with analytics and AI, blockchain is poised to disrupt every aspect of the industry.

The core of blockchain is a way for two parties to conduct transactions without requiring third-party verification. Most of its applications have been focused on cryptocurrencies and finance. However, its underlying technology could be very beneficial for marketing.

Blockchain’s ability to return data value to users is among its most interesting features. Usually, businesses have high benefits from being able to pull data from customers. For folks to make even the simplest purchases in-person or online, everyone from PetSmart to Walmart wants our contact information, including our phone number, email address, address, and even the name of our firstborn.

Yes, it does benefit the customer in some respects since it enables businesses to promote to them directly. On the other hand, it’s intrusive. It means that businesses are profiting by stealing—and occasionally even selling—the personal data they collect from everyone who seems to fit their consumer criteria.

Some platforms and businesses are already ahead and are working to bring power back to the people. As opposed to being bombarded with online ads, the Brave browser offers its users Basic Attention Tokens(BATs) when they choose to view ads. This new way of viewing advertising differs from traditional advertising methods as it allows advertisers to trade the value of their online attention for the space they display.

Blockstack is designed to protect consumers’ digital rights. When people provide data for certain applications, their information is stored on their servers. However, with Blockstack, your data stays and belongs only to you. It serves as a key to open programs but is immediately returned to the user after application. This is groundbreaking in terms of digital marketing. 

Authentication and Transparency

Instead of relying on a central point of control, blockchain technology relies on a vast network of nodes to ensure that transactions are approved and confirmed.

Traditional computing systems use a client-server network to store data. Data is stored in a central database, where all actions and computations are stored. Everything taken and executed is fed into one place. This model gives internet providers much control over data.

Instead of relying on a central database, blockchain technology takes the traditional model and completely decentralizes it. That eliminates the need for central control and allows anyone to access the data stored on a public ledger. Unlike other cryptocurrencies, blockchains are immutable, meaning that any changes to the chain will be recognized and viewable by everyone.

Instead of relying on a central database, blockchain technology allows people to control their transactions. That eliminates the need for internet providers and gives them more control over their data.

Through blockchain technology, marketing can be conducted more transparently and build trust with clients. In addition, users can see how big businesses use their data. Unfortunately, with centralized databases, it’s nearly impossible for customers to understand what information is being used and how it is shared.

Ad-spend is Utterly Confusing

To untangle the confusing world of online ad spending, IBM and Unilever are working on a project to create a secure and verifiable chain between the ad dollar and the end user. This new technology will allow publishers to manage their advertising spending more efficiently. In the past, 85 cents of every ad dollar was sent to the publisher. Today, that number has dropped to 40 cents due to the number of intermediaries involved.

The project has already saved Unilever millions of dollars. On the other hand, it could put a lot of companies out of business due to the lack of transparency in their ad metrics. Blockchain is disrupting digital marketing and could wipe out a whole generation of companies in the process.

Reduces Advertising Fraud

According to Forrester, over 60% of companies that spend over $1 million on ads lost at least 20% of their budgets to digital ad fraud. This issue has prompted many corporations to step up their efforts to prevent this fraud.

Due to the increasing number of ad fraud cases, many companies have drastically cut their ad budget. One of these is Uber, which had to reduce its ad spending by $100 million to save money. However, after they conducted an investigation, they discovered that the company’s ad budget was still being eaten by fake apps, bots, and phantom clicks.

Due to the fraud, many companies have had to rethink their ad spending strategies. And the answer is blockchain technology. Blockchain technology can solve this issue by providing user verification. Hence, ad networks can track the activities of their users and prevent them from interacting with fraudulent ads.

Through blockchain’s open ledger, advertisers can identify the source of fraudulent or wasteful ads. It can also blacklist fraudsters. Despite its challenges, such as the lack of scalability and latency, businesses could use blockchain to combat fraud in ad networks. For instance, Toyota has successfully used blockchain to identify fraudulent traffic, saving on spending.

Security and Privacy Protection

Due to the increasing number of data breaches, many businesses have shifted their focus to protecting their data. In 2021, the cost of a data breach increased from around $3.76 million to over $4 million. That is the highest margin of loss in more than twenty years. With so many businesses moving to the cloud, this number will likely continue rising.

With blockchain technology, businesses can now benefit from their data security. Unlike traditional methods of securing their data, blockchains ensure that all their transactions are encrypted. That ensures that they are never compromised.

In addition, businesses can now provide their clients with additional security measures. These include the creation of smart contracts designed to record and verify all of their transactions. These smart contracts can also automatically create backups and duplicates, which provide additional security, transparency, and trust. Hence, digital agencies can use these contracts to establish better client relationships.

Final Thoughts

The potential of blockchain technology to transform the way marketing is done immensely. It can allow us to consume, understand, and deploy marketing campaigns more efficiently.

Unfortunately, there are still new reports daily about cybersecurity breaches and hacks from malicious actors. Despite the various steps organizations can take to improve their online security, the issue remains a huge obstacle to the widespread adoption of blockchain technology.

Ultimately, the rapid emergence and evolution of blockchain technology and cryptocurrencies are expected to impact the tech industry in the next decade significantly. Hence, businesses are left to decide whether they want to adopt and conquer or ignore and be driven out of the market.