Are you aware of blockchain and influencer marketing? Do you know how blockchain will impact influencer marketing?
Multiple tools are frequently required to accomplish various stages of developing and conducting an influencer campaign. Some systems may assist you in identifying the appropriate influencers, for example, while other solutions are meant to track results and calculate return on investment.
Every day, we learn about data breach disasters involving advertising technology firms. Every day, we are monitored by hidden cookies and permissions we provide unintentionally.
Blockchain can give transparency while serving advertisements and compensating for genuine human interactions with the adverts, not automated traffic.
This article will let you know how blockchain will impact influencer marketing.
Let’s get started;
So maybe you're familiar with Bitcoin, or you may have seen the Netflix documentary "Banking on Bitcoin." However, this digital money is merely a portion of the blockchain. Any type of transaction may be requested, confirmed, verified, and added to the blockchain's digital record.
According to Alex Nascimento, co-founder and faculty member of the UCLA Blockchain Lab, "the benefits of blockchain enable this decentralised, immutable, and transparent new type of database. It helps to largely eliminate the need for a middleman in any transaction in which the parties do not trust one another completely."
Blockchain’s benefits include:
Influencer marketing is a vital and influential kind of internet marketing. Influencer marketing has exploded in popularity recently. Influencer marketing uses endorsements and product mentions from influencers/individuals with a sizable social media following regarded as topic experts ( Chen ).
Influencer marketing has grown into a different sector within digital marketing. As E-Commerce grew in popularity, digital marketing methods changed. Influencer marketing is no longer what it was in 2014, and numerous individuals have evolved into influencers and micro-influencers.
Recently, as reports of data inflation and discrepancies were revealed online, the market area for blockchain expanded. Advertisers and publications began in search of a more transparent alternative.
Since the previous decade, advertising platforms such as Facebook Ads, Google Ads, and others have dominated the digital advertising market. These advertising behemoths manipulated data and information to increase their profit margins significantly.
Advertisers and brands are unaware of how our advertising money is used. Digital advertising is complicated, ad fraud is widespread, and a lack of transparency and accountability costs marketers and publishers considerable money and a big budget.
According to Forrester, up to 56% of all display advertising revenues are lost to fake inventory, with the cost of ad fraud predicted to reach $50 billion globally over the next decade.
According to research on programmatic advertising, 79 percent of advertisers voiced concerns about transparency, and strong brands such as P&G are beginning to reduce their media spending and demanding complete transparency from their digital agency providers.
Blockchain is defined as an open, distributed ledger that enables the efficient and permanent recording of transactions between two parties. It will be critical in resolving existing concerns and challenges encountered by marketers, advertisers, and digital media professionals around data resistance.
Additionally, everyone can view, access, and verify this information openly. The information will not be stored in a single location, ensuring data security across numerous locations, cities, and nations.
Since the beginning of the COVID-19 epidemic, the world of marketing has shifted dramatically. Marketers rely on online influencers to promote their brand content on social media. There is, nevertheless, a considerable disparity between brands and influencers.
Today, the primary use of blockchain is in finance, where it enables transactions without the necessity of an intermediary. Often, the technology is accompanied by identity management methods that assist users in protecting their online identities against theft.
Here are some ideas;
The decentralisation of the blockchain facilitates transactions without paying fees to financial institutions. A significant brand with contacts with various micro-influencers might save money on marketing by conducting commerce directly with the influencers via blockchain.
This is especially advantageous when working with influencers located around the world. Given that businesses are constantly on the lookout for influencers who often represent themselves (i.e. are not bundled with media purchasing organisations), the simplicity with which money may be sent reliably via blockchain would benefit both the company and the influencer.
The deployment of blockchain technology will ensure the integrity of marketing promises. Each step of the trip may be evaluated, recorded, and confirmed independently. This is critical for marketers that work with third-party media providers to offer targeted digital advertising.
Marketers will have complete control over delivering their assets by monitoring precisely where their advertisements are placed, ensuring genuine followers and consumers connect with their advertising, and validating accurate ad engagement tracking. This will enable contract negotiations and acceptance of conditions depending on the results.
Intelligent contracts are specific contracts that are programmed to execute when certain circumstances are satisfied. As a result, a business may program the contracts of all of its influencers to respond to specific objectives without watching each one individually.
When the standard is fulfilled, the influencer gets compensated through blockchain technology, which automates the process. For instance, a payment is triggered when a specific hashtag is shared X times.
Already, martech and adtech blockchain businesses are seeking to tokenise user behaviour and establish a credit system between marketers and consumers, effectively eliminating the need for middlemen in media management. Marketers will ultimately become the source as our world continues to decentralise.
Transactions between buyer and seller in self-executing contracts (smart contracts) will be encoded in lines of code. Payments to suppliers and vendors will be simplified, more efficient, and automated.
Dealing with social media influencers may expose a brand to interactions with many people worldwide. Nonetheless, blockchain technology provides more confidence that people are who they claim to be.
Your marketing team may have more trust in online interactions and your influencers' actual identity and reputation, thanks to blockchain's digital identification standards.
As with many developing technology, it is too early to predict how blockchain will affect marketing. However, as it stands now, we expect that blockchain technology will increase transparency in data-driven marketing by confirming and evaluating the user experience via verified ad delivery.
Additionally, it will help marketers create direct customer trust by distributing and tracking data and information. Decentralisation enables the safe storage of private data across numerous storage locations. As well as the immutability of data.
And as blockchain technology advances, it is only a matter of time until blockchain fully transforms how marketers, advertisers, and publishers conduct business daily.
Additionally, your marketing team may profit from the blockchain's decentralised file storage. Without the requirement for centralised client-server links (as with the conventional web), companies may easily and quickly send information to influencers over secure networks.
Consequently, regardless of the influencer's location, the company may provide streaming material or files without worrying about widely available private data.
As blockchain technology seizes control of the influencer business, nano and micro-influencers will have increased freedom to focus on their content and grow their following. Typically, nano influencers have a social media following of up to 10,000 followers. When they are enthusiastic about a company, these influencers share their actual experiences.
They gradually establish a well-connected community around it.
Through the power of blockchain, influencers and marketers may interact directly, allowing nano and micro-influencers to be noticed by larger firms.
Additionally, companies will be able to quantify an influencer's return on investment, allowing for the inclusion of smaller, more good influencers.
Blockchain technology enables you to access correct data. All transactions on the blockchain are decentralised. Marketers will have a reliable source of data. As a marketer, you have two options for compensating customers for their data.
Brands may use blockchain technology to reduce or eliminate costs and non-value-adding activities at the intermediation layer. Brands may then motivate customers to reveal and share information through loyalty programs.
In this highly competitive marketing world, influencer marketing can quickly help your brand reach the right audience. It can strengthen your online presence, boost brand awareness, and acquire high-quality leads. . With the right influencer marketing strategy, you can even generate more sales for your business.
It’s no surprise that blockchain is impacting the digital advertising ecosystem positively and gradually. Blockchain has been a disruptor in many aspects of industries. It is not difficult to imagine that digital advertising might become a more transparent and efficient industry with the increasing adoption of blockchain.