- Blockchain marketing is advertising information in a decentralized network allowing users and consumers to benefit directly.
- In 1993 the first digital content aired after HotWired purchased a few banner ads for their digital advertising campaign.
- According to reports, digital advertising losses in 2020 reached a staggering $42 billion and will reach $100 billion by 2023.
The Web3 Industry is one of the most evolutionary advancements in this era. Its fundamental technology, blockchain, has ushered in a new age of innovation that cuts across multiple industries. Its applicability has transformed the financial sector and brought new forms of technology to real estate and agriculture in Africa, and now various medical institutes are adopting its capabilities. The notion of decentralized information and control has opened the eyes of millions to the possibility of a new form of technology. Among its numerous applications, its most recent one has opened new doors of possibility, blockchain and the media industry. Through this partnership, digital content has gained a new definition that empowers the artist and the company. One of its latest implementations is digital advertising providing a new and better form.
History of digital advertising
The creation of Web1 was one of the most significant milestones human beings have taken since the invention of the computer. Before its development, the distribution of information was mainly relied on traditionally through newspapers, radio stations, television stations and even word of mouth. Gaining an ample market requires vigorous work, and many organizations spent millions on their advertising agency. However, this all changed in the 1990s after the term digital marketing came along after the launch of the Web1 platform.
Despite having limited functionality, during its debut, Web1 was a marvel of ingenuity that interconnected the entire world. It offered users a chance to acquire information. However, a central entity heavily controlled it, and most businesses were unsure about digital advertising.
In 1993 the first digital content aired after HotWired purchased a few banner ads for their digital advertising campaign. This bold move soon paid off, leading to a massive wave of customers. This leap of faith kickstarted the age of digital adverting.
The shift rapidly increased during 1994 as Yahoo launched the “Jerry’s Guide to the World Wide Web”. This digital ad received close to 1 million hits within the same year. When Web2 came along, it gave power to organizations and individuals.Web2 offered a more interactive platform that gave users some control over their information. The Internet soon became the global source of information for most users. This led to the development of social media platforms such as MySpace, Facebook, and Twitter. Their ability to interconnect the world soon became a conducive environment for digital content.
Despite this, the peak of digital advertising came during the Covid Period. At the time, the digital age fully bloomed across the globe, and the digital economy was born. This led to the success of digital advertising, and plenty of businesses soon created a digital presence to maintain their companies during the crisis.
Fortunately, within the same period, blockchain technology took root. The Web3 Industry flourished, and decentralized information took root in many regions. This would eventually lead to the concept of blockchain marketing, the next iteration of digital advertising.
Blockchain marketing the new era of digital content.
Despite its vast benefits to businesses, traditional digital marketing had its flaws. Most companies frequently had to rely on third-party agencies to establish a firm digital presence. This led to a series of difficulties like cost and quality of services. On several occasions, advertisers filed lawsuits against several social media platforms for tampering with video views and ad analytics. Furthermore, during the rise of digital content, most startups had difficulty keeping up with the inflated prices of advertising their services. Although, the web3 industry mitigated these problems.
One of the key attributes of blockchain technology is decentralization. The entire make and concept of the Web3 industry is to develop a decentralized network. It essentially breaks down the barriers between users and consumers. Its immutable nature is why digital currency has gained such an audience. Today the global cryptocurrency market cap stands at $1.25 trillion. Its success brought about its mass adoption, and today several media industries use blockchain technology to mitigate some of its shortcomings.
Blockchain marketing is advertising information in a decentralized network allowing users and consumers to benefit directly.
It offers a platform where decentralized information can thrive on. In blockchain marketing, campaign managers do not interact with advertising outlets directly. Smart contracts automate the entire process and also deal with the revenue earned. Its immutable nature ensures no third party can alter any digital content advertised, ensuring security measures.
How Blockchain marketing will transform advertising agencies
According to reports, digital advertising losses in 2020 reached a staggering $42 billion and will reach $100 billion by 2023. One of the crucial factors of the web3 industry is its ability to account for all processes within the supply chain or any procedure. Blockchain marketing will ensure accountability for users when presenting commercials and the transactions conducted between the consumer and seller.Furthermore, it offers security against fraudsters and even viruses. During the age of Web2, digital advertising fraud schemes accounted for at least 15% to 50% of ads within several platforms. Some were trojan horses which led to the loss of data. Blockchain marketing offers an innate security system that prevents any alteration of digital content.
This is due to the decentralized information system that blockchain networks build. Any change of information requires a consensus of 51% of the total users of the network. In addition, it offers digital advertising products provenance capabilities. This confirms advertiser identities reducing the risk of fraud. Its scalability remains unaffected since any revenue is earned directly from the customer.
Boosting Influencer Marketing
Today a new form of occupation has gripped the minds of the younger generation; the influencer position has flooded the media industry. Most products and services use digital content creators to advertise their products as a marketing strategy to attain more users.
Influencer marketing has transformed into digital advertising, but blockchain marketing provides better solutions. Utilizing decentralized information reduces the entities within supply management, allowing the content creator and the organization to earn from the users directly. Smart contracts provide the accurate automation of all transactions, ensuring that each party receives its dues. This form of digital marketing also led to the development of web3 music, where artists directly earn from their viewers.
Blockchain marketing also validates the credibility and performance of the influencer. This acts as a quality assurance for the affiliate organization as they can keep track of the revenue an influencer earns.
Accounting for Loyalty Programs
Loyalty Programs are one of the few marketing strategies most organizations use. International companies and businesses offer loyalty programs with additional perks to customers who genuinely love their brand. This program is profitable to both parties and provides an opportunity to improve company products.
Adding blockchain marketing significantly boosts the efficiency of such programs. For instance, the web3 industry is known for its interactive nature and can offer robust systems with a streamlined interface for most organizations. Decentralized information also offers a sense of control, boosting customer trust in the brand. Furthermore, blockchain technology enables additional accountability and ensures each member can receive more perks from their purchases.
Affiliate marketing is among the most potent source of income for most firms and individuals. According to statistics, affiliate marketing costs roughly $6.4 billion in the US economy. Blockchain technology can improve affiliate marketing systems, making them more profitable.
One of its drawbacks is its complex supply chain management. Fortunately, blockchain marketing mitigates the wastage of money on commissions and accounts for any shady affiliates. Furthermore, the web3 industry has incorporated cryptocurrency in many affiliate marketing strategies. Due to this, crypto has managed to survive significant tough times.
Another drawback is the faulty payment system most affiliate markets have. Traditionally a user has to exceed a certain threshold to receive their payments. Blockchain marketing ensures that the user receives the funds as fast as they generate them. It also prevents fraudulent digital content that has plagued the industry for several decades.
Digital advertising is a marketing strategy that is still in its infancy stage. As the world moves to a digital era, using such strategies will only become more mainstream. Blockchain marketing offers a more efficient and faster way of earning. In addition, its security measures will significantly aid multip organizations from losing billions in fraudulent activities.