Will blockchain bring truth to marketing?


Mike Jones | Strategic Planning Director | NATIVE VML | mike@native.co.zahttps://www.vml.com/native-vml/ |

In many ways technology has brought about some growing pains to the field of marketing. One such pain is the commercial relationship between advertisers and publishers.

The industry, as a whole, requires more clarity and truthfulness in the buyer-seller relationship between advertisers and publishers than ever before – especially in digital marketing, where trust is being eroded by fake-news, click-farms and other fraudulent mechanism.

This, in turn, has a negative impact on the customer’s experience, which ultimately is bad for clients, marketers and agencies because it diminishes the ability to build a brand.  In the digital age, the experience matters more than communication.

Impact and results

Furthermore, during tough economic times, growing a business while making that growth sustainable is the number one goal. The usefulness of accurate data is key in a multi-national corporation’s dynamic reporting requirements and marketers are therefore being asked to show the impact and results for every rand spent.

The volume, mystery and inconsistency of consumer data combined with centralised media power make this type of reporting more complex. Moreover, social platform algorithms are angled towards providing as much profit margin for said platforms rather than benefiting the brand or the marketer. How can a marketer trust anything anymore?

The truth to answering that question lies in even more technology (unfortunately), machine-crunching math and crypto currency could be the answer.

We have all heard of Bitcoin. It is a crypto currency that lets you buy and sell anything as long as the involved parties accept it. Even with a $4 billion loss, 1 Bitcoin is still worth over R35,000. More importantly, Bitcoin, and the technology behind it, just might save advertisers, media owners and publishers large and small.

Increasing efficiencies

When Bitcoin launched in 2008, appearing first in a white paper written by Satoshi Nakamoto, it described the currency as “an innovative peer to peer electronic cash system that enabled online payments to be transferred directly, without an intermediary.” Intermediaries in this context are banks, credit unions and insurance companies.

Understanding BitCoin’s software called blockchain can help advertisers and marketers grasp its full and future potential. The following exert from Colin Thompson on Medium.com explains what blockchain is:

Blockchain allows BitCoin to represent anything of value. It can represent the ownership of a barrel of oil or even a digital certificate. What about a media budget or publisher space for sale? Yes, it can!

Blockchain can make the transactions between buyers and sellers faster and cheaper, consequently lowering the financial admin cost dramatically whilst increasing efficiencies. How does this…

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Read this article by Mike Jones, Strategic Planning Director, NATIVE VML, as well as a host of other topical management articles written by professionals, consultants and academics in the October/November 2017 edition of BusinessBrief.

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