Blockchain technology is a win-win for digital marketing agencies and consumers alike, as it hands the control of data back to the individual while giving agencies more “effective use” of their marketing budgets, according to blockchain experts.
Speaking to AIBC, Ralph Kalsi, CEO of Blockchain Australia believes that blockchain will improve both efficiency and transparency within the advertising process.
For example, blockchain can be used to “verify the authenticity” of advertising metrics such as impressions, clicks, and conversions, which provides greater transparency in the digital advertising process,” said Kalsi.
This could lead to a more efficient and effective use of advertising spend and better results for advertisers, he said.
Kalsi noted that it also has the potential to address the issue of third-party companies collecting user data to “target advertisements to specific users,” providing “greater privacy and security for users.”
It also reduces the risk of data breaches and unauthorized access to personal information, he added.
Awa Sun Yin, co-founder of privacy-preserving protocol Anoma told AIBC that blockchain technology will improve advertising as it makes it explicit with “whom the data is shared with,” so the user can also pick “with whom” they actually want to share the specific data with.
This could lead to a better outcome for marketing agencies who are able to get a much better sense of who is interested in hearing about its products, as opposed to large scale, high-cost advertising.
Meanwhile, Sandy Carter, Senior Vice President, and Channel Chief of NFT domain firm Unstoppable Domains told AIBC that it can cut out the middleman and allow people to “decide if they want their data sold,” and to whom.
She suggested this will cause a major power shift in the digital marketing industry, adding that currently, major tech companies “just harvest the data of their users” and then sell it on to advertisers for their “own profit.”
Carter noted that users will be directly compensated for their own data and can completely opt out if they want, stating:
“This will put data control back in the individual’s hands.”
Meanwhile, Kalsi said that users having the option to share their data with advertisers in “exchange for compensation,”in the form of cryptocurrency, will also incentivize advertisers to use the data in a responsible manner.
He explained that advertisers will only receive payment if they use the data in a way that aligns with the “user’s preferences.”
Looking ahead, Carter has a positive outlook on blockchain in digital marketing, noting that the secret to successfully advertising in the Web3 space is simply through providing value to consumers.
Kalsi believes that the decentralized nature of blockchain technology providing a safer environment for user data is a benefit for both the consumer and advertisers.
End of social media?
Despite blockchain’s potential influence in the future, Carter believes there will still be a purpose for tech companies and social media platforms – “they won’t just cease to exist because of Web3.”
However, she noted that blockchain technology may cause these companies to reconsider and restructure their business offerings.
She explained that social media platforms, for example, could “pivot away” from data harvesting and use Web3 solutions like digital identity that give their users more control over who sees their data and how it’s monetized.
In this way, these companies can continue to exist and be part of the next generation of the internet, according to Carter.