Blockchain is an industry buzzword and a game-changer for financial services. However, its unique and multifaceted applications can also be leveraged by marketers. We discuss how blockchain marketing strategies can help marketers reimagine the customer experience and customers’ expectations.
What Is Blockchain?
Blockchain is akin to the public ledger system, where everyone can see and share material with all users. All records are stored in blocks, gradually expanding into a chain-like formation. Possibly blockchain’s biggest USP is that it is incorruptible, meant only for expansion and amplification, without changing anything. Given its enormous peer-to-peer networking capabilities, blockchain marketing strategies have the potential to be true game-changers.
Just like the internet changed our lives a few decades ago, blockchain carries the potential to transform any transaction pathway — whether fiscal or human — purely based on the revolutionary nature of the technology at work.
Few outside the tech world are considering future applications for the technology underlying Bitcoin and ether. However, the technology is far more than just an enablement for cryptocurrencies — blockchain represents a new type of protocol, a new way for individuals and companies to connect with each other and have greater control, transparency, and efficiency in all kinds of transactions.
~ John Bates, Director of Product Management, Adobe.
Today, blockchain technology is a disruptive force across industries. In fact, blockchain is geared to impact any business that is heavily dependent on data transactions.
So, How Do You Create a Blockchain Advertising and Marketing Strategy?
If you’re looking to answer this question, here are three ideas to inspire you.
1. Introducing Innovative Reward and Loyalty Programs
Since the dawn of advertising, customers have loved being rewarded, especially for their loyalty to a brand. But the problem with its online version is that the gifts offered or the points collected cannot be realized immediately and stay unused. This causes the entire loyalty program to become ineffective, and in some cases, an absolute failure. With blockchain marketing strategies, you can revolutionize this space.
Take Balehu for instance, a disruptive localized marketing platform where merchants can connect with users and pay out rewards via a cryptocurrency token, on decentralized channels. The tool combines targeted advertising for local users and an analytical engine to guide campaigns, with a loyalty incentive system based on ‘real’ value. Going forward, we expect that blockchain marketing strategies like these will empower customers to build their own digital wallets and utilize the various coupons, points, and cards collected, through a single platform.
2. Improving Advertising Efficiency and Audience Selection
Traditional online advertising is fraught with several challenges, such as overcrowded real estate on websites, a lack of visibility, and dependence on “middlemen” — resources that control the territory between advertisers and users. Blockchain can help you change this, offering greater control, visibility, and speed. Here’s how:
- Blockchain can process different consumer transactions and behavioral data to better target advertising content. There are already experimental tools such as Acquired.io, which analyze transactions to create ‘Lookalike Audiences’ for blockchain advertising campaigns. You can cut through the clutter, reaching only the most relevant users.
- Advertisers will gain more control over the properties they purchase and their usage. Ad data is sent from the consumer’s device to the blockchain to be verified and stored on an immutable ledger — as an advertiser, you can view this almost instantly, monitoring campaigns in near-real time. This application is being tested by pioneers like AdsDax but is still in the R&D phase.
- It is on the question of “middlemen”, that blockchain marketing strategies will perhaps have the biggest impact. Most websites choose to display ads vetted by the Google Display Network (or any other intermediary) as these are perceived as trustworthy, despite these intermediaries taking up a portion of the profits. With blockchain, your reliance on these platforms will inevitably decline because the immutability of data reassures both brands and site owners. This, essentially, means a higher profit margin.
3. Breaking through the Influencer Web
The ‘influencer element’ is now a double-edged sword that marketers need to turn to their advantage. While genuine and thought-provoking endorsements from well-known influencers enhance a product’s brand value, there is also a negative side to this. Without clearly articulated guidelines or a relevant measurement mechanism, you can fall prey to influencer fraud.
Marketers can leverage blockchain marketing strategies and its transparency to assess an influencer’s credibility and validate their followers and engagement. This can also help you analyze influencer campaigns and identify conversion rates to link it to your ROI.
The ability to assess genuine, on-ground impact is probably the hardest part of any marketing campaign. Eventually, every campaign must lead to two clear, emotive responses from the customer — ‘trust’ and ‘loyalty’. This is where blockchain, with its deep focus on transparency and the unchangeable nature of its foundational concept, makes a whole lot of sense.