%20(1)_edited.png)
November 8th, 2021
By: Priyal Maheshwari
Blockchain groups information in the form of “blocks” that get connected to a “chain of blocks”, hence the name, blockchain. As you might have heard about blockchain use cases in cryptocurrencies such as Bitcoin, Ethereum, etc, it is also used outside of fintech, in industries like supply chain (for being more transparent), personal identity systems, and many more! Marketing is also another industry that can revolutionize by the introduction of blockchain technology. Currently, marketers face unethical problems like collecting and using consumer data without consumer knowledge, blockchain can help with more data security for the consumers. This technology can also help make marketing (especially digital marketing) cheaper, more transparent, and efficient. Let’s dive a little deeper into how blockchain can transform marketing!
Transparency
For both marketers and consumers transparency is important. For consumers, more transparency if the products are really what the company has marketed. For example, consumers buying a product that claims to be “organic,” blockchain via smart contracts can make the process more transparent.
As explained in the image, whenever a smart contract transaction is “triggered” the information is stored to be viewed by everyone. This is how companies use blockchain to further their marketing process.
Data Privacy:
Moreover, data privacy is a big concern in marketing, which can be improved with the blockchain environment, specifically cryptocurrencies. Rather than collecting consumer data without consent, marketers can actually ask the consumer if they would opt-in to share their data in exchange for digital tokens. This would give the consumer an “intensive” to share their data. Brave Browser is a great example of this, they offer their users to opt-in to display ads in exchange for Basic Attention Tokens (BATs) for the ads that they interact with. Therefore, this aspect might not be a good idea for marketers, it is a step forward in protecting the privacy of customers in digital marketing.
No Middle Man:
Despite not getting “enough” data from consumers, markets can save thousands of dollars by cutting their middle-man. As blockchain has the potential to reach the consumer directly, leaving no room for a middle-man. Data analytics would be readily available via blockchain, therefore, data analytics would be easier than ever. Companies like IBM and Unilever have already started working on their own blockchain technology saving millions of dollars.
Thus, blockchain is slowly disrupting the industry and making marketing even more efficient!
Priyal Maheshwari is one of the Fall 2021 Co-Content Directors. She is a junior at NYU Stern studying Marketing and minoring in Astrology. She is the lead on the MktSoc Blog Writers project, so reach out to her if you have any questions!
Work Cited:
Comments