Understanding this new technological tool is key to modernizing business practices and streamlining future celebrity marketing campaigns.
At this point, it is a matter of when not if blockchain fully integrates into the business world. Several companies are utilizing specialized blockchain software across several sectors, with many more to follow.
Blockchain is a repurposed function of Bitcoin algorithms that create an incorruptible network of transaction ledgers. Unlike databases in the past, blockchain does not have a central server that stores the information, allowing for increased security and broader access to the network of users. It was originally used as an approval measure for the sale of Bitcoins but can be extended to work for any transaction between two or more parties.
What effects will this have for celebrity marketers?
Marketers will have even More Control – Similar to the advent of social media, the integration of blockchain gives marketers almost full awareness of how their message is released. Because blockchain is an updating algorithm distributed to every participant, there is much less possibility outside factors can hijack the content. As Jared Dicker of Adweek puts it, “Blockchain-registered publications provide uncontestable records about a publication’s attribution and origins. It’s immutable. It’s the single source of truth.” The problem of accidental association like the YouTube “Ad-pocalypse” will be a thing of the past.
Single Service Agencies will become Extinct – Adapt or die is a rather cliché phrase, but it rings true with blockchain integration. One of its features is that it cuts out the need for a middle man as communication becomes instant and traceable. Without the diversification of services in an agency it will soon become unprofitable to be a single service. Not only will these firms need to compete with one-stop shop agencies but they will also have to deal with circumvention of their services by marketers who can accomplish the same task by analyzing blockchain data and incorporating it into their brand strategies. Consulting will not cease to exist, but it will be much more difficult for firms to sustain themselves unless they diversify their revenue streams.
Full Transparency will be the Cost of Business – It is no secret that transparency has become a major issue in the world of marketing and advertising. Some experts believe that blockchain integration will solve these problems by giving brands a publicly accessible ledger of business transactions that can prove any brand’s legitimacy. To be fair, the software can service private accounts, but its inability to be forged will ensure it cannot be used for corrupt purposes. With blockchain, consumers will demand that brands be authentic in their interactions and will have the tools to guarantee those demands.
Campaign Tracking will become Seamless – The ability for marketers to access a ledger of transactions and activations on a network will provide endless opportunities to track the success of their campaigns. The difficulty in corrupting blockchain data will provide marketers with a large and authentic collection of data to be used for future campaigns. Rather than relying on social media brands to collect relevant data, firms large and small can trust their own data streams for accurate consumer measurement.
photo credit: Ormeus Coin via (flickr)