Full Name : Tushar Goyal, Suraj Chouhan

Contact Number : 9414431349, 6000178739

LinkedIn Address : https://www.linkedin.com/in/tushar-goyal-601327126/

https://www.linkedin.com/in/suraj-chouhan-a0156b149/

Email: tusharg.mba08@iimamritsar.ac.in
surajc.mba08@iimamritsar.ac.in

Instagram ID :https://www.instagram.com/itstushargoyal/
https://www.instagram.com/_sur_aj_3/

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College Name : Indian Institute of Management, Amritsar (Both)

Course Name : MBA Core

Batch : 2022-2024

Blockchain: The New Era of Marketing

The rise of the blockchain industry in the last decade has demanded many promotional
tactics that have an understanding of the entire industry. There is so much boom in this
small sector that an entire blockchain industry has been set up and utilized in other
industries such as Fintech, Edtech, Real-estate, Marketing, etc.
Although the roots of the blockchain can be traced back to 1991, it was made available
to the common public in 2008. Since then, it has taken over the digital world. From
innovating the mechanism of financial transaction recording to creating cryptocurrency
platforms, blockchain has penetrated almost every industry globally, and marketing is
no exception. As perResearch and Markets, by 2030, the global blockchain industry can
reach a valuation of 1,431 billion USD, growing at a CAGR of 85.9% from 2022 to 2030.

This article will explain how blockchain plays a prominent role in marketing.

What is Blockchain?

A blockchain is a publicly distributed and decentralized ledger, i.e., a database

accessible through several nodes or computing devices. A verified transaction is stored
in blocks, and that's why it is called blockchain technology. A block contains all required
information of the transaction, timestamp, and the cryptographic hash of its preceding
block.

Instead of utilizing a centralized system, blockchain employs a Peer to Peer network for
storing data at multiple locations or nodes. These nodes keep the data copy from the
genesis block. Whenever there is a new transaction record in the database, it gets
updated automatically across all nodes in the network.

The users on the network have to solve a math problem to verify these transactions.
After the verification, the block is added to the existing blocks chain. No user can edit a
verified block, making the blockchain immutable.

How does blockchain play an essential role in marketing?

There are 3 significant factors supporting the role of blockchain in marketing. These are
Decentralization, Immutability, and Transparency. We will delve into each of these
factors to know why blockchain is gaining adoption across the globe.

1. Decentralization:

In the traditional client-server or centralized model, there is/are servers that host all the
information, and the client has to communicate with the server to access the
information. In simple words, if you want to send money to your friend, you have to do it
by an intermediate like a bank.

Along with the cost incurred by a middleman, this centralized mechanism is also prone
to many threats like data leaks. However, if this P2P network gets decentralized, there
wouldn't be a single host of the information. In fact, the information will be stored locally
at every node. Thus, to send money to your friend, you can do it directly without
involving a bank.

1. Immutability:
The immutability of records gives a higher security level. After block verification, the
stored data can't be altered. Even if a hacker tries to deceive a block, the data will
change significantly along with the hash of its previous blocks. The whole blockchain
will change, so it can't be verified with any other node. The hacker has to alter records
for every node, which is practically unfeasible.

1. Transparency:

As blockchain is distributed ledger, it is accessible by all users in the blockchain.

Ostensibly, it might raise some eyebrows, but there is no need for it as users' identities
are entirely concealed.

Best Blockchain Strategies for Marketing:

The blockchain has entered many industries such as BFSI, Real-Estate, Media, Retail,
etc. Many tech companies are also leveraging blockchain in their operations or
products. There are 8 different blockchain marketing strategies that can be utilized per
the scope.

1. Influencer Marketing:

Although brands spend a hefty amount on influencer marketing methods, this marketing
method still has a bad rep due to the roadblocks of calculating correct ROI, lack of
transparency, and fake followers & engagement.

Blockchain can resolve this issue by introducing intelligent contracts. Per these
contracts, the payout will facilitate when desired actions are achieved. Blockchain can
also be used to verify the authenticity and performance of the influencer. For e.g.,
indaHash is a popular Ethereum-based influencer marketing platform that offers a
dispute solution system.

1. Affiliate Marketing:

As per the Statista report, in 2022, 8.2 billion USD was spent in affiliate marketing in
US. But even after such a considerable investment, brands are getting dubious
affiliates, wasting money on site with no ROI, and paying hefty commissions to affiliate
networks. There are multiple ways by which blockchain will not just save money but will
also increase the efficiency of affiliate marketing:

 Simplifying payment through cryptocurrency

 Generally, the payments in the affiliate process are kept on hold until the
minimum payment threshold is reached. However, blockchain-driven products
can operate without such limits.
 Introducing smart contracts for reducing ad frauds and ensuring accountability.

Coupit is one of the best epitomes who is working on this model.

1. Loyalty Programs:
Many customers join loyalty programs of different brands as they are either already
loyal or seeking extra discounts. But the problem with loyalty programs is in redeeming
points mechanism. Customers must keep track of their loyalty points and redeem them
before the expiry. So instead of becoming a win-win situation for both brands and
customers, it becomes precisely vice versa.

Blockchain loyalty programs are highly streamlined. Since blockchain is decentralized,

multiple brands can form a group, and the customers can redeem loyalty points with any
brand of that group. As the loyalty points are deposited in real-time, they are
redeemable on the go. Henceforth, every entity in the ecosystem wins.

Sandblock is an excellent example of loyalty program solutions built on blockchain

technology.

1. Ad-Fraud Prevention:

In 2019, nearly 332.25 billion USD were spent by advertisers, and $42 billion of this
went to ad frauds. Almost one-eighth of the amount went in vain to the ad frauds such
as fraudulent traffic, domain spoofing, or malicious advertising. Also, many publishers
deceive the advertisers on dubious sites that bring a lot of traffic but no sales.

Blockchain can combat ad frauds by eliminating the presence of a middleman, i.e., the
networks, and keeping the advertiser, publisher, and the user. It will increase the
transparency in the process.

Lucidity has already started leveraging blockchain technology to prevent ads-fraudulent

activities.

1. Social Commerce:

In the e-commerce industry, social commerce plays a massive role in selling products. It
refers to the e-commerce activities carried out on social media platforms. Have you
seen ads for clothing or footwear on Instagram? If you click on those ads and make a
purchase, it will be called social commerce.

Blockchain has similar applications in the e-commerce industry as well. It can prevent
fraud, provides faster and streamlined transactions, and keep user identity anonymous.

OpenBazaar is a decentralized e-commerce marketplace that allows merchants to build

e-commerce stores and make them the decision makers of their online stores.

Wrapping Up:

Despite being nascent, blockchain presence is overwhelming in other industries, and

marketing is just one of them. This article has covered blockchain presence in
marketing in layman's terms to help you get a fair understanding of this technology and
how to leverage it in marketing.