José Gabriel García Ortega, Digital Marketing expert and CEO of the content marketing agency La Caja Company, has developed a brief guide on the implementation of this technology in advertising and how it would affect brands, consumers and intermediaries.
The basic objective of blockchain technology is the elimination of intermediaries at the time of carrying out a transaction or a process, decentralizing all management and where the control of the entire process passes to the users. Such technology is not only being coined in the economy through cryptocurrencies, but it is also being implemented in other sectors. “It is estimated that soon it will be the turn of marketing and advertising, precisely due to the decentralized nature and free of intermediaries that it has as a pillar of its operation,” says José Gabriel García Ortega.
Although the use of blockchain technology in advertising has not yet been adopted as such, the trend dates back to mid-2020 and is growing to this day. Thus, García Ortega has developed five keys on the blockchain in advertising, as well as the forecasts that revolve around the sector.
The blockchain in advertising could eliminate the intermediaries
Such as, for example, advertising platforms, and finally, making advertising messages reach the consumer directly. For now, the middle man has become part of the process in the world of digital advertising. However, companies that invest in advertising only get half the value due to those middlemen involved. The blockchain could alter this reality by creating better value for advertising campaigns. “In finance, cutting out the middleman means eliminating the need to use banks, since the main function of a financial institution is to reliably store and transfer money. In marketing, these central authorities could be Google or Facebook, where they work ensuring the reliability of the transactions or advertising campaigns “, says García Ortega.
So instead of indirectly communicating with the brand owners to run an ad, there could be direct communication with them. The blockchain can easily help prove that users, along with click data, are real, leading website owners and those interested in advertising to not need a mediator to sign an agreement.
Brand loyalty by compensating consumers
It could make way for a model where consumers are compensated for each advertising or content they consume. With blockchain technology, brands can bypass intermediaries and interact directly with consumers, leading to a model where they share the reward of ad exposure directly with these users. For example, when registering in a form and leaving the data or subscribing to a newsletter. In this way, special offers could also be promoted for the most committed followers and thus boost brand loyalty.
Consumers could choose which ads to see
The application of blockchain in marketing could allow consumers to choose which ads they are interested in seeing. Thanks to this win to win model, the marketing possibilities could reach other levels, where users could consume advertising “voluntarily”, and really focused on what interests them.
Also, this technology could be used to verify ad delivery and consumer engagement, thus avoiding message glut, which both displeases users and discourages them from becoming shoppers.
Users could set the value of tokens
The so-called NFTs (non-fungible tokens or non-fungible tokens) are part of the blockchain ecosystem as a kind of “digital objects” in the format of images, audios, videos, animations, etc. that are characterized by being unique or of a limited number and that are put on the market through an auction where users can buy them through cryptocurrencies (the most used for this is Ethereum).
“An example of NFT in the non-digital world would be a work of art, which may well be unique and be auctioned, where in the end it is the buyers who decide the price of that work and give it its value. The NFTs would transfer that reality to the digital world, and through auctions it would be the users who would assign the value of each NFT to them, “adds García Ortega.
NFTs are already a reality for brands
Today various brands use NFTs to launch limited edition digital items. In this way, they are seeking not only to position themselves, but also to provide value to their consumers through these types of objects, which may well be considered the next boom in terms of branded content and of course, in the digital marketing ecosystem. Examples of this are Nike, Pizza Hut, Panini, Vodafone, Pringles, among others.
NFTs allow the sharing of a user license for whoever buys it while the NFT issuer retains full ownership and autonomy of the content. In addition, a percentage will be paid to the creator each time the NFT is sold or changes hands, ensuring that if their work becomes popular and increases in value, they will receive part of the benefits.
On the other hand, NFTs allow brands to sell their content directly to fans, collectors and financial speculators, as well as decentralize the distribution and monetization of their content.