The Bitcoin boom has made blockchain technology a trending topic.
However, it has not always been seen in the most favorable light. When cryptocurrencies emerged, they were mainly used for shoddy transactions on the dark web.
Fortunately, the mood and usage have changed. More and more people are seeing the value of investing in Bitcoin, and companies are getting the idea of using their technology in business.
This technology can do more than just buy and sell cryptocurrencies. This can affect the way we work, even if you don’t plan to accept cryptocurrency as a payment method.
Here’s what you need to know about the implications for the digital marketing industry.
What is blockchain technology?
Let’s start with the basics.
Blockchain technology is a new way to protect your data.
The “blocks” are digital information or records and the “chains” are public databases in which the information is stored.
You can use blocks to store information like:
- Financial transactions
- medical data
- Provide information
- confidential customer data
This is how an information block is created and then stored in a chain:
- A transaction is taking place, e.g. B. someone buys Bitcoin worth 100 USD.
- The transaction is verified and saved as a block.
- The block is given a unique identification code called a “hash”.
- The blocks of information are linked and secured by cryptographic principles known as chains.
How does blockchain work for data security?
Blockchain is a possible solution to give customers the security of their data.
Every few months you hear the news about companies experiencing customer data breaches.
Credit card information, passwords, physical addresses, and more are displayed on the dark internet, leaving people vulnerable to cyber crimes such as:
- Identify theft
- Phishing programs
- Online harassment
After all, data is valuable.
Every time we search Google, buy an item on Amazon, or double-tap an Instagram post, this information is captured because it’s valuable.
The high level of security of this technology enables companies to set up a secure data network for recording and storing consumer data.
However, you cannot delete this data. Once it is added to the chain, it is there forever.
While this means you can’t choose what data to record, blockchain can give users the option to choose what data to share with whom.
Why should you use blockchain in marketing data security?
Marketers can leverage blockchain by providing customers with transparency and privacy while fighting fraud and building brand awareness. These are attributes that people might look for in order to make them feel safe doing business with a company.
Here are some of the benefits of using this technology for data security marketing.
Blockchain offers more transparency and accountability
The biggest advantage is transparency. The transaction ledger can be viewed publicly, creating an additional level of accountability.
It ensures that companies must act responsibly and with integrity when using consumer data.
Regardless of the size of your company, it is not always easy to gain trust. People are naturally skeptical of online information, especially in times of deepfakes.
As a result, transparency has a huge impact on consumer purchasing decisions.
Blockchain improves security, encryption and validation
Every time blockchain creates a new transaction, it is encrypted and linked to the previous transaction.
Once it is formed, it is impossible to change.
The immutable and incorruptible nature of blockchain makes it incredibly secure to use, protects information from forgery, and lowers the risk of hacks.
Marketers can also use smart contracts for greater trust, transparency, and security. This automates the workflow by triggering the following action when the conditions are met.
How could blockchain transform the data security marketing industry?
This new technology may be on track to disrupt digital marketing, including the way we collect data and interact with customers.
Here are some ways technology can change everything from keyword tracking to creating data-driven campaigns.
Improved keyword tracking
In the past few years, keyword tracking has gotten easier.
With tools like Ubersuggest, it’s easy to see how you’re doing your search. What if you could combine that with this new technology?
Marketers can use the technology to track keyword positions on any device, anywhere. Blockchain allows you to use real numbers for data-driven and accurate campaigns.
Decentralized social media
Data breaches and Facebook’s participation in the 2016 US election are causing social media users to become aware of how their data can be used against them.
In response, there is a growing market for decentralized social networks. These websites allow users to share, connect, and discover content without supervision.
What does this mean for marketers?
As websites using this technology grow in popularity, we no longer have to rely on simple data collection and look for new ways to generate leads.
Generate better leads
Like most marketers, you’ll likely pull information from a variety of sources and run your campaign based on the information found.
The only problem? The data is not always correct.
With blockchain, marketers can go straight to the consumer for data collection. They could incentivize people to give you access to their information.
For example, if you want someone to subscribe to your newsletter, you can pay the reader a small amount every time they read an email.
While this would likely incur a higher upfront cost, if a customer is ready to hand over their data, it is a much stronger head start. Using this method could streamline your sales funnel and provide you with more qualified leads who are ready to be nurtured.
Eliminate click fraud in online ads
One of the biggest problems in digital marketing is click fraud.
In this case, a person or a computer program clicks on advertisements that pretend to be a legitimate user. Website owners often use this tactic to increase their advertising revenue.
You can use blockchain to ensure that ad impressions and clicks are authentic.
adChain is a company working to combat this problem. The adChain registration uses a smart blockchain contract for authentic engagement.
Their results show that this can help increase transparency and reduce fraud with digital online advertising.
Transparency for customers
When you use blockchain technology, your customers know who has access to their data and how they got it.
It can stop nefarious companies from selling cold lead marketing data and help customers control the spam that fills their inboxes.
For marketers, less time could be wasted on leads who aren’t interested in your business. You have a pool of real people with the problem your product or service solves.
Examples of blockchain companies
Some companies are already using this new (ish) technology.
Spring Labs uses blockchain to verify identities and reduce fraud in the financial sector. It helps institutions to securely control information and to mutually benefit from it without losing sensitive data.
Coinbase is one of the largest companies in the world using blockchain technology. The digital portfolio enables users to buy and sell cryptocurrencies such as Bitcoin and Litecoin. According to a report by Axios, Coinbase was valued at $ 100 billion in the sale of shares in the public market.
Mythical Games creates blockchain-based games that allow players to make money by selling digital property on items. The technology enables Mythical Games to check the scarcity of an item and keep a record of ownership.
Doc.ai is an app with blockchain and machine learning technology. All of your medical data from pharmacies, doctor visits, hospitals, etc. are brought together in one safe place. It gives patients the ability to manage their medical records and provides predictive insights into the risks of future diseases.
Blockchain in Marketing FAQ
What is blockchain technology?
It’s a new technology that is backing up data for financial transactions, medical records, and even marketing.
How does blockchain increase data security?
Blockchain data uses cryptography to protect data and make it more secure.
Why should you consider blockchain for marketing data security?
It gives your audience more control over their data, increases transparency, and is more secure.
How could blockchain change the marketing industry?
Blockchain has the potential to increase data security, improve keyword tracking, decentralize social media, improve lead quality and prevent click fraud.
Blockchain is much more than just a technology for processing cryptocurrency payments.
Digital marketers can use their power to give consumers more control over their information, add an extra layer of security to build trust, and get valuable, distilled data without all the fluff.
How do you think blockchain will change the world of digital marketing?
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