How Blockchain & NFT is Shaping the Future of Brand Marketing?
The fun thing about technology is that just like an organism, it keeps evolving and notating, sometimes even re-branching into varied forms. The digital disruptions we are witnessing today are built on the remnants of the internet revolution. From the advent of the internet to the acceleration of the crypto economy laid on the foundation of blockchain, one of the most disruptive new age technologies, such technological advancements also impacts the fundamental aspects of business, like branding and marketing.
In the past decade, the concept and strategizing of marketing has gone through extensive transitions, owing to the popularization of websites, apps, social media, mixed reality, and likewise. Now, it is poised for yet another milestone transition as blockchain and NFT use cases increase across industries.
Blockchain in Marketing & Data Security
Blockchain has made its mark in the tech world as the revolutionary decentralized technology upholding the values of immutability, data protection, transparency, and traceability. Although still in its nascent stages of development, blockchain has proven its potential, disrupting the legacy systems across industries. With the rapid crypto revolution along with prominent pilot projects progressing in the supply chain and financial services grabbing all the limelight, we often forget to acknowledge its importance or latent impact in digital marketing. Let’s take a look:
- The frequent change in search engine algorithms, and keyword-tracking across multiple platforms and geographies to generate organic SERP, often becomes challenging for the marketer. Blockchain addresses that issue with its traceability attribute. Keyword tracker backed by blockchain technology can help marketers to track the ranking keywords across multiple devices and geographies. It would help them to create intensive campaigns, driven by accurate data.
- Data security is a major concern among social media users these days, especially after scandals like Cambridge Analytica. The alternatives here are social media platforms built on decentralized technology, which enables the users to share and connect with others minus the surveillance. Decentralized social media like Sociall, WildSpark, are gaining momentum among the users. The best part, there is content monetization on these platforms, which values content with its uniqueness and quality. Decentralized social media will give users absolute control over their data. Mass adoption of such platforms will force brands and marketers to rethink their marketing and lead generation strategies.
- Data provenance is another area where marketers can out blockchain to their use. On a blockchain platform, the data is decentralized and recorded in a public ledger, making the sourcing and use of data transparent to the consumers. How the data is sourced and how it is used, everything will reflect on the public ledger. Transparency leads to a bond of trust between the brand and the consumers, leading to stronger brand loyalty. These brands can even incentivize the process of data sharing by the customers. The access to first-party data direct from the consumer helps in formulating more focused marketing strategies.
That’s just the tip of the iceberg! With blockchain advancing towards mass adoption, marketing will undergo and holistic change in approach, ideation, and execution in the future.
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NFT for Brand Promotions
Lately, NFTs have remained in the constant limelight. From selling digital artwork to album launches and promotions by brands like Taco Bell, NFTs are the new marketing and promotion trend that everyone is ready to dive in. But what are NFTs? And what’s all the noise about?
NFTs or non-fungible tokens are digital assets that are tokenized on a blockchain platform and like cryptocurrencies they are immutable too, making these assets unique. It lives a provenance and proof of ownership since the transaction is recorded on a decentralized public ledger.
Digital objects are at the risk of forgeries since copying them does not take much effort. But since NFTs are blockchain-based, they cannot be forged and the owner gets easily designated.
How can brands use NFTs? They can use it to create awareness, value, and uniqueness of the brand and enhance relations with the consumers. It is a virtual souvenir with a unique origin with single ownership. Exclusivity is what the consumer gains through NFT.
In the coming days, more brands and celebrities will foray into the NFT zone, and accordingly, marketers would have to create appropriate strategies to create memorable and unique consumer experiences relevant to the brand.
Metaverse Impact on Digital Marketing
Metaverse as a concept is the coagulation of diverse 3D interactive virtual spaces that would enhance social interaction through mixed reality. Now, Metaverse essentially coincides with the NFT culture, considering that both offer unique virtual experiences. Brands like Nike, H&M, Disney, Gucci, and many others are planning significant investments in both areas, which bring us to its impact on marketing and consumerism. So far, the reach of Metaverse has been measured in wearables like the Oculus, for immersive virtual experiences in multiple areas ranging from entertainment to education.
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There are endless ways that Metaverse can and will impact digital marketing. However, experts, also fear that brand theft can be a significant issue in the Metaverse because unlike the real world there is no IP law and licensing in the virtual space. With the existing legacy regulations, it would be impossible to track ownership provenance in the Metaverse, even with blockchain.
Wrapping up
Like every other technology, the air surrounding blockchain, NFT, and Metaverse is a mix of excitement and uncertainty. Nevertheless, one thing is for sure, it is going to transform the present traits of digital marketing as we know it.
