When most people hear the word Blockchain, they think of Bitcoin. After all, it is the technology underpinning Bitcoin and other crypto-currencies. While the argument over whether Bitcoin is a bubble or not rages on, the technology behind it, that is the Blockchain, continues to transform entire industries. More and more businesses are turning to Blockchain as the new way to conduct business with security, more efficiently and with less risk. Intermediaries in the payments sector in particular, from insurance to healthcare, are falling by the wayside as entire industries are embracing the economic model Blockchain has on offer in performing routine transactions. But finance and payments are only the beginning; within the last couple of years, we have seen Blockchain disrupt the Music and Entertainment, Content Rights, Real-estate, Energy Supply Chain Management and Ride-Sharing industries. There is no doubt that as consumers and businesses are slowly but surely turning their focus on ensuring accountability, justice, and fairness, more sectors and a growing number of consumers will fall into Blockchain’s web in one way or another. As with everything else about the internet, the world of Digital Marketing has been steadily merging with Blockchain. So, how exactly is Blockchain refining Digital Marketing in 2018?

What Is The Blockchain (in simple English)

I don’t want to ramble too long here, but essentially, the Blockchain is simply a public ledger, where activity is recorded and confirmed with transparency. Unlike a traditional database, where control lies with the system administrators, data entries shared across the network can be validated without a central authority. Another distinction involves data entry. Whenever new data is added to the ledger, instead of overwriting or changing the data, a Blockchain will add a new node, or block, to the ledger while replicating each node across all peers on the network. This is more tamper-proof than traditional databases, as the nodes on the network create an immutable audit log over time. If you would like to learn more, the Centre For International Governance Innovation (CIGI) has published an excellent video which explains Blockchain technology.

Blockchain technology is starting to show how it can transform many sectors and markets. Of course, Digital Marketing is one of them. Although in its very early stages, Blockchain is already changing how digital adverts are delivered as well as how content creators are compensated. As a matter of fact, Blockchain-based technologies are allowing publishers to take control of how their digital ad campaigns are procured, displayed and evaluated, producing high quality leads. As a serial digital marketer, these are the top three ways Blockchain could refine the digital marketing industry.

Restore Confidence In Ad Spend

There’s an old adage in advertising – “Half the money I spend on advertising is wasted; the trouble is I don’t know which half”. This has never been truer than it is today. Ad fraud is brand marketers and digital agency’s top concern when it comes to their media planning and buying. It ranks higher than ad-blockers, control over where their ads are displayed, and bot traffic! According to Marketing Week, digital advertisers are set to lose $6.5 Billion dollars to ad fraud globally. That is a lot of digital marketing budget wasted. Blockchain is about to change that. Because the protocol is both encrypted and transparent, publishers can determine whether their ads and their content is viewed by people belonging to their target audience or not, while saving money in the process. It also helps publishers target audiences more efficiently. By using Blockchain, an advertiser can build buyer profiles directly from customers, gathering the demographic data customers willingly share in one instance. This gives publishers greater ability to address their customers needs, while also adjust their budgets to serving ads or content only to those who are the likeliest to buy their products or services.

Eliminate The Chasm Between Brands And Consumers On Data Privacy

I am sure you have all heard about GDRP by now – if you haven’t familiarized yourself with GDPR yet, here’s a refresher for you. Without any doubt, the amount of data digital marketers collect and store from their consumers has increased exponentially over the last decade. It is no wonder that 77% of Canadians are concerned about how their personal data is used by brands. Marketers and brands, particularly retailers who retain vast consumer data, could turn to Blockchain in order to safeguard their customers personal information. Because the protocol is transparent and decentralized, it gives consumers greater transparency and control over their personal data. If you think about it another way, Blockchain not only enhances the customer experience at a public relations level, it builds trust between your brand and customers.

Bid Adieu To Intermediaries

When you were running advertising programs in the past, this was done through an intermediary – whether that was a radio or television station, a display network, or an agency that would negotiate the price and placement for your advertisements for a fee. Because the Blockchain has a propensity for eliminating the middleman, it could lead to cutting out the entire ad buying process outright. Effectively, the Blockchain offers both a network owner (e.g. a website) and the advertiser peace of mind. Site owners can use it to ensure they will be fairly compensated for each click made, while advertisers will be assured that the clicks they are paying for is coming from genuine traffic. Both parties have more control and security over the process, while their respective costs.

Final Thoughts

While interest in Bitcoin and the broader crypto-currency market is waning, Blockchain technology and it’s power to solve problems for many business sectors is just picking up steam. From a digital marketing perspective, the potential features this technology has to offer is astronomical. While some are struggling to use a mobile app to schedule their social media updates, or trying hard to get their Facebook ad’s to work, the power Blockchain has to refine the digital marketing landscape is very exciting. But, that’s enough from me for now. What do you think? Will Blockchain and digital marketing take-off? What other ways can you see the technology changing your digital marketing operations? I would love to read your thoughts in the comments below.