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The Effect of Blockchain on Business: Blockchain in Marketing

In the field of information technology, blockchain is a technology that has emerged as a very promising element. It is a type of public ledger that can be viewed by multiple parties involved in the transaction and serves as a central repository for all transactions between them. One of the main factors for the expansion of the market is the growing popularity of bitcoin around the world. When it comes to the impact of this revolutionary technology on marketing and advertising, beginners and even blockchain specialists have a lot of doubts. In the field of marketing, blockchains have the potential to have a huge impact.

What is Blockchain?

Blockchain is a decentralized type of decentralized database, which means that it is governed by a community of users rather than a single central entity. Encryption protects data. It cannot be modified or deleted. According to the basic idea of ​​blockchain, any file or data can be stored in chain blocks. The technique is used in many fields. Business transactions, financial data and health data are eternal in the blockchain system. As a result, this technology offers a new, open and secure tool for advertising companies.

Blockchain in Advertising

Blockchain is based on distributed ledger technology, which has enormous potential to impact several aspects of the marketing value chain. Smart contracts between agencies and businesses and micropayments that reward consumer engagement have the potential to transform marketing. There are over 200 companies that allow the use of blockchain in marketing initiatives. Anyone involved in a start-up or new business needs marketing. Here is how blockchain technology affects marketing –

1. Reward Sharing –

Distributed ledger technology organizes transactions of any size, allowing businesses to make micropayments to their customers. This has far-reaching ramifications as it is used to transfer money directly into bank accounts, obviating the need for gift cards and online credits with limited redemption. This gives customers a monetary incentive for every engagement, no matter how minor.

2. Data Verification –

Blockchain can automatically collect, verify, save and update databases with minimal human involvement. This is believed to change the way consumer information is approached. Since it promotes data-driven marketing, blockchain is the ideal platform to generate ideas.

3. Serverless Architecture –

When dealing with thousands of transactions, serverless architecture is a better alternative than standard cloud hosting because it allows stores to grow based on customer demand. Therefore, blockchain allows companies to experience zero performance gaps and indirectly host on-demand advertisements.

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4. Targeted Content –

Rather than using automatic information generation for successful targeting, data can be aggregated into a hyper-personalized type of information.

5. Security –

Data security is a top concern for anyone buying or selling anything online. Everyone wonders if their personal or financial information has been exposed when there are regular breaches in the news. Every transaction on the blockchain is confirmed and publicly visible, but the parties involved remain anonymous. As a result, all activities will be more secure and everyone engaged will remain completely anonymous.

6. Better quality of information –

Consumers will be able to charge for their contact details, ensuring that only the businesses they are interested in receive them. This may sound terrible for business, but it’s a good thing. Instead of wasting money on data from people who aren’t interested in your business, you’ll get targeted, reliable information from people who are interested.

7. No need for intermediaries –

As a brand, you want to make sure the ads you buy are placed on high-quality websites that are specifically targeted to the demographic you want to reach. This involves paying high fees to a company like Facebook, which has the kind of reputation both businesses and website owners crave. This inspires confidence in the process. You can completely avoid ad networks using blockchain. Users will be automatically vetted, eliminating the need for a third-party service like Google to establish trust. Companies that place advertising and websites that have space available can work together to provide a seamless experience.

8. Build Trust –

Building consumer confidence, especially of small businesses, is essential. It can be difficult for a small business to stand out, especially if your field has strong competitors. Many shoppers are understandably skeptical of companies they’ve never heard of, and the sale of shoddy products is rampant on the internet. No matter how small the trustworthy businesses are, they will quickly be able to build trust with blockchain. You will be able to show them every step of the supply chain and prove where your items are coming from.

Blockchain is the future of marketing and business. This will benefit businesses in terms of competition, cost reduction and increased transparency and consumer confidence.

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Margarita W. Wilson

The author Margarita W. Wilson