Think blockchain technology is just for NFTs in marketing? Think again. Here are three other ways blockchain is being used to change marketing.
The use of blockchain technology in marketing is increasing, and having blockchain tech capabilities is one of the 25 most sought-after skill sets in the US.
Let’s start with a definition of blockchain: “Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network,” according to IBM. “An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.”
We take a look at four main ways blockchain technology is affecting marketing:
Nonfungible tokens
The use of NFTs by brands to engage consumers is now a fairly common strategy, with recent examples including Under Armour’s collaboration with Curry Brand or Coachella’s use of NFTs to offer extra perks to festival attendees. The latter is an example of how NFT marketing strategies are evolving from giving consumers collectibles to offering value in everyday life, writes Ann-Marie Alcantara in the Wall Street Journal.
Business-to-business marketing startup Hang aims to help marketers use NFTs to transform loyalty and rewards programs.
“Because of blockchain technology, NFTs create a way for brands to incentivize their users to not only rank up to a new level in their program, but actually appreciate the value of the asset that they own and can later be resold on [NFT] marketplaces,” Hang co-founder and CEO Matt Smolin told CNBC.
To increase trust
Brands are using blockchain tech to increase consumer trust. The decentralized nature of the tech offers greater transparency as all data is publicly available, with each change within the chain verified and impossible to falsify, writes EWR Digital’s Matt Bertram for Entrepreneur. “Blockchain is not only a great investment to create trust with our customers, but also to protect our collective online privacy and cut down on fraud and theft,” Bertram writes.
The tech also can be used to increase consumer trust in brand messaging around issues such as sustainability as it can provide proof of ethical supply chain transactions, writes Werner Geyser for Influencer Marketing Hub.
Word-of-mouth marketing
Attrace CEO Erwin Werring explains how blockchain tech is poised to transform word-of-mouth and referral marketing in this article for Daily Hodl. Blockchain simplifies the reward mechanisms brands can use to encourage customers to be brand advocates or to refer new customers. Marketers can consider using blockchain to boost word-of-mouth and social marketing using companies such as Loyyal, Cryptibles or The Boomerang Project, writes Sam Daley for Built In.
Rewards for watching ads
Consumers complain about being bombarded by digital ads, an ongoing problem for marketers, but blockchain technology can be used to incentivize views with cryptocurrency or other rewards, Werner Geyser writes. Brave is one browser that facilitates this exchange.
“This could be a gamechanger for phenomena like ad fatigue as consumers will be directly asking to view ads, rather than having them appear every time they scroll down a page,” Geyser writes.
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