The Blockchain Technology: A Potential Pain Point for Digital Marketers
“Digital marketing has been one of the major breakthroughs that the internet has provided to the companies for marketing their products and services, but it has been one of the major privacy issues for the consumers or the users of the social media and the internet. With the advent of the decentralized blockchains, it might turn the tables on the marketing companies.”
Digital Marketing and the Social Media or Internet
Social media and the internet has become a major part of an individual today and this extensive use of social media and the internet has provided a huge customer base for the marketing companies to target their corresponding customer segments. The data collected through these social media websites is immense and breaches the privacy of the users at an alarming rate. This breach in privacy is due to the centralized nature of the internet and social media. These centralized networks and social media platforms earn money by selling user data to the companies who want to sell their products and services to the potential customers.
How Blockchain Technology Will Become a Pain Point?
The biggest advantage of blockchain technology is that it supports decentralization. This decentralization is one of the major problems that can be faced by the marketing companies. The following are the ways in which the blockchain technology will make life difficult for these digital marketers:
Blockchain Conceals Identity of the User
The decentralized nature of the blockchain shifts the power to preserve privacy towards the users rather than the central authority controlling the accounts and the network. This shift in power provides the users with the capability of concealing their identity as well as data to an extent that is desired by the user himself. The concealment of data makes it extremely difficult for the companies and the digital marketers to target the users with the ads to sell their products and services.
Blockchain Makes Obtaining Consumer Data Expensive
As the data is concealed and difficult to access on a blockchain based application or a social media platform, it makes these digital marketers to explore other sources of information or to pay directly to the consumers for providing some of their data. This makes obtaining the consumer data expensive in nature.
Blockchain Makes Consumer Behavior Prediction Difficult
As the data is concealed or a limited amount of user data is at disposal of a marketing company if the blockchain technology is used, the consumer prediction behavior becomes extremely difficult. To predict the consumer behavior expensive technologies and extremely complex algorithms will have to be used making the job extremely daunting.
The Present Scenario
At present the blockchain technology is in its cradle and there are very few applications that are being built on the blockchain technology. This makes blockchain a threat for the digital marketers in the future and not at the moment. The digital marketers must take steps to optimize their technology to compete with blockchain technology in the future.
Disclaimer: The article is just to provide information and shouldn’t be considered as any financial advice. It is advisable to conduct thorough research before investing in any cryptocurrency.
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