[EN] How Blockchain technology can optimize marketing

Since its introduction,  blockchain  technology has always been associated with  Bitcoin  and other digital currencies. However, if you look beyond Bitcoin, it is clear that cryptocurrencies represent only the beginning of the use of this technology.

The transformation potential of blockchain extends far beyond cryptocurrencies. For this reason, it is important to expand the scope of use of this technology. 

We need to stop defining blockchain as a technology that only supports  cryptocurrencies  and perceive it as a way to store information in a safe, fast and distributed way.

From this knowledge, it will be possible to explore the potential impact of blockchain technology in different sectors, including the marketing sector.

Blockchain technology can influence the marketing strategies of startups and small businesses in different ways. That includes: 

• Personal information protection
• Precise targeting
• Improved transparency
• Verification and provenance

Personal information protection

The increase in cases of privacy violations has made consumers aware of the security and use of their data.

The introduction of data protection laws in different parts of the world, including the EU  General Data Protection Regulation (GDPR)  and the Brazilian General Data Protection Law (LGPD) are important milestones to stimulate this awareness. . 

In this context, when we think of blockchain technology, although the information contained in it is typically public, it is not controlled by a centralized body.

This means that the blockchain allows consumers to manage their data with the help of  proper encryption  .

Marketers can use this structure if they could deliver some tangible value to the consumer.

In exchange for that content / product / service, the consumer will voluntarily transfer their personal information. In other words, there will be no violation of privacy and there will be no risk of penalties associated with this type of violation.

This care is essential for business because processes of this nature can damage or even end a company.

This was the case with a German telecommunications company that was recently fined $ 10.5 million as a result of data privacy violations under the GDPR requirements introduced in 2018.

Additionally, if done correctly, a small business can benefit from receiving legitimately personalized, up-to-date and accurate information.

More precise targeting of marketing campaigns

Knowledge of commodity and data ownership is a goldmine for marketers, facilitating accurate targeting and minimizing inefficiencies.

Consider the following situation. A designer garment has an NFC tag that allows the buyer to register and connect to a decentralized application (dApp).

This will allow the company to send automatic notifications to the owner of the part that is connected to the blockchain network for that specific product.

These notifications can include actions such as inviting you to participate in exclusive promotional events or sending discount codes for another product on that same line. 

Another alternative is to use the blockchain to segment based on specific locations, possibly directing traffic to a new retail store to redeem a coupon. 

Overall, this integration of online and offline drivers offers marketers an interesting tool that can achieve tangible results.

Improving transparency

In a broader scope, blockchain technology has the potential to address several underlying bottlenecks in marketing and advertising, such as supply chain transparency and ad scams.

To better understand this problem, data from the 2019 Juniper Research report showed that advertisers lost around $ 19 billion due to fraud.

This has prompted some of the largest tech companies to invest in blockchain research and development to identify solutions that could solve this problem.

One of the solutions being explored is the creation of a simple money reconciliation system for the purchase of digital media. Another alternative is to find ways in which blockchain technology can be used in the purchasing process.

An example of this would be allowing consumers to do business directly with merchants instead of relying on intermediaries using their  proprietary  digital currency . 

From a marketing point of view, these solutions would pave the way to captivate brand and consumer experiences.

Verification and provenance

For a small business, blockchain technology can address some of the challenges marketers face when it comes to verification and provenance. These questions are critical because today's consumers demand that clarity.

Taking the example of luxury clothing provided above, the built-in NFC chip can also store information about the factory and the identity of the designer. Consequently, consumers can differentiate counterfeit from legitimate products in real time.

It is clear that blockchain is a very useful technology for various sectors. Its great potential can revolutionize and generate positive impacts in different industries, including the marketing industry.

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