Blockchain marketing strategy and benefits

Blockchain marketing has had a positive impact on marketing strategy effectiveness and, ultimately, firm performance through improved customer value propositions, increased sales revenue, lower costs, and higher profitability.

Blockchain deployment has caused significant disruption in how marketers communicate with consumers, as well as how they manage marketing mix variables and marketing campaigns. In marketing, it promotes disintermediation, increases trust and transparency, prevents ad fraud, and lowers overall marketing costs. It also encourages the development of strong customer relationships, the restoration of customer trust and loyalty, and the development of more effective marketing strategies based on direct communication with customers. Furthermore, it automates data fulfillment procedures, ensures customer transparency and security, enables a transparent transaction, increases efficiency by reducing back-office administration, and improves marketing effectiveness.

Before we dive into blockchain marketing strategies and their benefits, let’s understand what blockchain is.

The computers used in blockchain operate as a single entity. At this level, this makes hacking the blockchain extremely difficult. Unlike information centralized at Amazon.com or your bank, information stored on a blockchain project cannot be traced to a specific location. Furthermore, because a blockchain space is not owned or controlled by a single entity, even the best hackers are unable to crack blockchain technology (they tend to have more success cracking smart contracts that sit on top of the blockchain).

If you want to grow your business, you need a winning blockchain marketing strategy—competition is fierce, after all.

In fact, despite a barrage of negative press, the blockchain and cryptocurrency industries remain unstoppable.

For example, global spending on blockchain-powered solutions is expected to reach $11.7 billion by 2022. Similarly, the cryptocurrency industry is expected to grow to $4.94 billion by 2023, up from $1.49 billion in 2020.

As both markets expand, new blockchain and cryptocurrency projects will require more than ads to reach potential customers.

They require a comprehensive blockchain and cryptocurrency marketing strategy that spans multiple digital channels.

Blockchain marketing strategy
“Blockchain marketing strategy”

What is a blockchain marketing strategy?

A blockchain marketing strategy isn’t that dissimilar to traditional digital marketing. It also covers a variety of marketing verticals, such as content marketing, social media marketing, and email marketing.

The main distinction is that you are marketing blockchain projects and cryptocurrency businesses.

That means you’re aiming for savvy customers who rely on data-driven information.

It makes no difference whether you’re developing a new cryptocurrency or providing blockchain-as-a-service solutions to B2B clients. To make purchasing decisions, potential investors, buyers, and traders will conduct extensive research.

Now that we’ve gained some understanding of blockchain and its marketing strategy, we can now list and explain the best blockchain marketing strategy that has been proven to work.

Blockchain marketing strategy

  1. Influencer marketing
  2. Affiliate marketing
  3. Loyalty programs
  4. User data protection
  5. User rewards
  6. Ad fraud prevention
  7. Blockchain-Based social platforms
  8. Social commerce
  9. Transparent marketing campaigns
  10. Digital marketing security
  11. Eliminate Intermediaries
  12. Smart Contracts = Trust (or Trustless)
  13. Don’t neglect what’s always worked
  14. Don’t fake it
  15. Dox yourself
  16. Innovation = Headlines
  17. Level up your content marketing
  18. Dial down technical jargon
  19. Get your project listed
  20. Focus on reputation management
  21. Guest post on trusted sites
  22. Use communities to your advantage

To stay ahead of the competition, marketers should start thinking about how they can launch a crypto marketing pilot. Because cryptocurrencies are becoming increasingly popular, marketers must consider how they can implement blockchain marketing strategies. Here are some ideas for pilot cryptocurrency projects that you can begin right away.

Influencer marketing

Brands are heavily investing in celebrities and micro-influencers in order to reach a larger audience. However, influencer marketing has a bad reputation due to issues such as difficulty tracking ROI, a lack of transparency, and fake followers and engagement.

By incorporating smart contracts into the ecosystem, blockchain can effectively solve this problem. Smart contacts will make it easier to get paid after completing specific actions or delivering the desired results. The technology can also be used to validate the influencer’s performance and legitimacy.

Affiliate marketing

Affiliate marketing will cost approximately 6.4 billion USD in the United States alone. Despite such investments, brands face issues such as dealing with questionable affiliates, wasting money on sites that provide no value, and paying exorbitant commissions to affiliate networks.

  • In the following ways, blockchain can reduce money waste and bring order to affiliate marketing:
  • Use cryptocurrencies to make the payment process easier.
  • Payouts are typically held by the affiliate network until the minimum is met.
  • When a payment threshold is reached, blockchain-powered products can operate without such constraints.
  • Smart contracts should be used to ensure accountability and reduce ad fraud. As a result, the use of tracking pixels will become obsolete.

Loyalty programs

Customers join loyalty programs because they are already fans of your brand or want to save money. The average American household is a member of 29 different loyalty programs, but only 12 of them are used.

The issue with customer loyalty programs arises when it comes to redeeming points. Customers must remember to keep track of various loyalty programs and redeem them before the offer expires. As a result, rather than being a win-win situation for brands and customers, it becomes the inverse, with brands also losing out by creating a liability.

Loyalty programs powered by blockchain have the potential to solve this issue by introducing a frictionless system. Due to the decentralized nature of blockchain, multiple brands can collaborate by allowing customers to redeem loyalty points with any brand in the network. Customers can redeem their loyalty points on the go because they are deposited in real-time. Everyone in the ecosystem benefits in this way.

User data protection

With data breaches becoming more common, businesses must prioritize the protection of customer data. GDPR, which went into effect in 2018, established stringent guidelines for brands in terms of collecting and using customer data. 

As a result, brands have been looking for solutions to improve customer data security. Blockchain comes to the rescue here by allowing users to anonymize their data or sell it to brands of their choice.

User rewards

We live in an attention economy, which means that if you don’t capture the users’ attention, you will lose it. Brands literally pour truckloads of money into online advertising, with global digital ad spending expected to reach 333.25 billion USD by the end of this year.

By displaying your ads to the target audience that is most interested in your offerings, blockchain can help you make the most of your investment. For example, the blockchain-based browser Brave allows its users to customize the types of ads they see. Brave has launched the Basic Attention Token (BAT), an Ethereum-based utility token that is distributed among publishers and consumers based on ad views. In essence, the advertiser is paying users for their attention, ensuring that the ad budget is spent wisely.

Ad fraud prevention

Advertisers lost 42 billion USD in ad fraud out of 332.25 billion USD in digital ad expenditure in 2019. Advertisers have lost a lot of money over the years due to ad frauds such as fraudulent traffic, domain spoofing, malvertising (a portmanteau of “malicious advertising,”) and so on. In addition, publishers defraud advertisers by placing ads on questionable websites that generate a lot of traffic but produce no results.

One way to combat ad fraud with blockchain is to eliminate the middlemen, such as networks while keeping the advertiser, publisher, and user. This will increase transparency.

Blockchain-Based social platforms

Over the last decade, social media platforms have attracted billions of users. Although social media allows users to connect with their family, peers, favorite brands, and celebrities, it comes at the expense of their data. Because ad sales are the primary source of revenue for social media platforms, they track every action to improve their targeting capabilities. This knowledge, combined with recent data leaks, has made users wary of using social media.

These solutions may not benefit brands right now, Steem is a social blockchain that allows you to build apps, monetize your content, and build communities. Steem is the foundation for applications such as Steemit (a blogging platform), DTube (a video platform), and Utopian (which allows people to fund open-source projects).

Social commerce

Social commerce has already arrived, and blockchain will be the next disruptor in the e-commerce industry. When it comes to preventing fraud, enabling faster transactions, and keeping user identity anonymous, blockchain has similar applications in E-commerce.

Decentralized E-commerce marketplaces and platforms such as OpenBazaar, GAMB, Bezop, and Eligma help vendors build e-commerce stores and empower them to make decisions about their online stores.

Transparent marketing campaigns

Marketing platforms, in general, are database-driven systems that record information such as target audience, transactions, contracts, clicks, and other data exchanged between multiple participants across various systems of intermediaries and technologies. Because it is impossible to manipulate, blockchain could serve as a single source of truth for digital marketing platforms. It’s a formidable tool that can and should transform the digital ad industry because it’s decentralized, transparent, immutable, and automated.

When you click on an ad, for example, the advertiser wants to make sure you saw it and intended to click on it. Blockchain can help by giving advertisers a new way to validate transactions. This means that clicks can be verified as legitimate, removing the possibility of fraud. Furthermore, once a transaction has been recorded and confirmed, it cannot be changed, ensuring trust and making reporting/audits open and transparent.

Digital marketing security

The use of third-party platforms increases the risk of data loss, fraud, and theft as a result of cybersecurity breaches and human error. As digital marketing becomes more popular, the need for security grows. Blockchain marketing provides a solution to many of the security issues that businesses are currently facing. A blockchain-based solution verifies and records each transaction on a public ledger.

This means that marketers can ensure the security and integrity of their campaign data. Furthermore, blockchain can be used to track customer interactions and evaluate the effectiveness of marketing campaigns. This information is encrypted and thus difficult for hackers to access. As a result, blockchain marketing provides businesses and their customers with a high level of security.

Eliminate Intermediaries

Marketers will make more money if intermediaries such as Google, Instagram, and Facebook are eliminated. Businesses can use blockchain technology to connect directly with their customers and vice versa. As a result, businesses can concentrate on developing valuable content to share with their target audience.

Brands, for example, can use digital tokens to reward customers for completing specific tasks, such as watching a video, sharing an article, or filling out a survey. These tokens can be redeemed for product discounts, free trials, and other benefits.

Marketers will make more money if intermediaries such as Google, Instagram, and Facebook are eliminated. Businesses can use blockchain technology to connect directly with their customers and vice versa. As a result, businesses can concentrate on developing valuable content to share with their target audience.

Brands, for example, can use digital tokens to reward customers for completing specific tasks, such as watching a video, sharing an article, or filling out a survey. These tokens can be redeemed for product discounts, free trials, and other benefits.

Smart Contracts = Trust (or Trustless)

Blockchains enable flexible methods of validating and recording data. Smart contracts enforce the rules for what goes on the block and when it goes on the block. Smart contracts are the most common way to enforce rules about who records transactions on the blockchain when they are recorded, and at what value. Smart contracts are programmatic rules that are stored on a blockchain and executed when certain conditions are met.

They are typically used to automate the execution of an agreement so that all participants are immediately certain of the outcome without the involvement of an intermediary or the loss of time. Smart contracts are called trustless because they do not rely on all parties to ‘trust’ one another.

Because the contract predetermines and enforces all of the rules, no one party can renege and change the agreement after it has been activated. The blockchain processes smart contract transactions, allowing them to be sent automatically without the involvement of a third party.

Don’t neglect what’s always worked

If you’re transitioning from more traditional industries to the world of web3, the good news is that you don’t have to forget everything you’ve ever learned about marketing.

In marketing, it is more common for strategies to be adapted rather than rewritten.

Consider copywriting, which is said to have originated in the 15th century but is still an essential component of any marketing strategy today. The goal of using persuasive language to generate sales has not changed, but the words we use and the channels we communicate through have.

Make sure you’re incorporating tried-and-true strategies rather than replacing them. This includes, for example, content marketing, public relations, social media marketing, SEO strategies, influencer marketing, and so on.

Don’t fake it

You must keep in mind that you are most likely targeting a technologically advanced and web-savvy audience.

That is, they will be able to see right through the fact that you purchased thousands of fake social media followers and hundreds of likes per post.

Similarly, over-shilling (or pumping) your project on social media usually backfires. Founders frequently ask their community to promote their project on Twitter by replying to tweets like the one below.

Dox yourself

Being doxed simply means that your identity is made public. People in web3 frequently use an online pseudonym to conceal their true identity.

When creators do this, the community often becomes skeptical because no one knows who will be held accountable if the project fails or is difficult.

Doxing yourself will give your community confidence in your intentions and make your project less risky for investors.

Innovation = Headlines

Given that web3 is all about innovation, it seems only natural to use this new technology to make a splash in the space.

One possibility is to hold metaverse events, for example, Ralph Lauren has already created a virtual boutique, and Justin Bieber has performed in the metaverse.

Instead, incorporate NFTs into your marketing strategy. Your audience is likely to be familiar with digital tokens and will accept this.

Find new applications for NFTs to attract attention in the same way that Gary Vaynerchuk’s Flyfish Club did. The New York restaurant is a members-only dining club, with memberships available only in the form of an NFT.

Level up your content marketing

To gain traction, blockchain startups require more than just blog posts and social media promotions.

Instead, they should rethink their content strategy and include more high-level, informative pieces. Case studies, white papers, and visual pitch decks are a few examples.

It’s also critical to consider how these pieces of content will be distributed to your target audience.

Integrating them into your email marketing strategy is a tried and true method. Instead of publishing industry reports on your website, use them as lead magnets to attract prospective leads.

Dial down technical jargon

If you want to attract potential customers, you must dive into the technical aspects of your blockchain project. However, using jargon in your content marketing should not completely alienate newcomers.

Keep in mind that potential investors require complete assurance before investing in new projects, especially those involving blockchain or cryptocurrency.

There’s also a chance that someone who wants to invest in cryptocurrencies is accessing your content. Furthermore, if they have never owned cryptocurrency before, bombarding them with technical jargon will not change their minds.

As a result, make your educational content accessible to beginners by using simple language and providing ample explanations for key terms.

Get your project listed

Startups flock to sites like Product Hunt in the hopes of sparking brand conversations.

Other blockchain-based startups that are gaining traction in the community should be listed on the platform.

Upvotes allow product listings on the site to be featured on the first page. As a result, make sure your listing is supported by active promotion efforts on your end.

Joining and becoming an active member of the Product Hunt community is a must-have strategy. You can start new discussions or join existing ones about topics such as:

  • SEO and marketing
  • Projects on the side
  • Launch Ideas
  • Time administration
  • Growth
  • Developers’ Resources

Focus on reputation management

The success of your crypto marketing strategy is dependent on your reputation. People need to know that their hard-earned money is in good hands if they are to invest it.

That being said, make sure your social media presence and your own website exude authority. Give enough information about your team, credentials, and previous achievements.

The same holds true for promoting your blockchain-based project. A good strategy is to collect reviews and testimonials from social media sites, if available. Make them easily accessible and use them as the focal point of your brand’s messaging. You can do the same with articles from other websites’ news and press releases.

Guest post on trusted sites

B2B buyers of blockchain startups do not simply scour social media for potential partners. They read articles on INC, Forbes, and other popular websites during their discovery and research phases.

Make guest posting to those publications your top priority for content marketing. Guest posting is beneficial to search engine optimization in addition to helping you build awareness.

Use communities to your advantage

Online communities, particularly Reddit, are popular among cryptocurrency and blockchain enthusiasts. They log in to talk about potential Bitcoin alternatives, or “Altcoins,” share trading strategies, and speculate on the future of cryptocurrency.

To reach these users, prioritize your brand’s consistent presence in the appropriate subreddit in your content marketing. Just make sure to contribute by providing value to users, whether it’s by sharing guides or answering questions.

Why is having a blockchain marketing strategy important?

A blockchain marketing strategy that effectively promotes blockchain projects necessitates a thorough understanding of your target audience’s purchasing process.

You must provide detailed, valuable content about your blockchain or cryptocurrency project that is relevant to their journey.

Because the majority of your target market is blockchain experts, generic marketing strategies will not work. Rather, you should ramp up your marketing efforts and create content experiences that deliver the right information at the right time.

Benefits of a blockchain in marketing strategy

  1. Reduced costs
  2. Audience targeting
  3. Increased efficiency
  4. Decentralized applications

Here are four ways your cryptocurrency marketing campaigns can benefit from blockchain technology.

Reduced costs

Because blockchain is a decentralized, peer-to-peer technology, you can immediately save a significant amount of money. The main reason for this is that you are effectively removing third parties from the equation. Ad networks are notorious for draining advertisers’ bank accounts in the name of fees or profit cuts. The use of smart contracts ensures that you only pay if the agreement’s terms are met.

This allows brands to deal directly with publishers, freelancers, external vendors, or users, and pay them directly without relying on middlemen. And, while blockchain may incur some infrastructure costs, transaction costs are almost non-existent.

Audience targeting

It is discouraging as a marketer to see the poor results of your marketing campaigns. Everything was well thought out, including the ad copy, visually creative, ad format, and target audience, but it just didn’t work.

Brands can directly connect with the right publishers and deliver their message to the right audience by decentralizing the advertising ecosystem. Furthermore, because users are compensated for viewing advertisements, brands can be confident that they are getting the most bang for their buck.

Increased efficiency

Paperwork-related activities are time-consuming and tedious. Take, for example, invoice processing. You must wait for payment after submitting an invoice. Furthermore, the use of a middleman causes the payment to be released later. 

Blockchain addresses this issue by allowing transactions to take place in real-time. It is not necessary to keep separate records because the information is accessible to both parties. 

Again, the use of smart contracts allows for immediate payment as soon as the terms of the agreement are met.

Decentralized applications

When it comes to traditional mobile apps, the Play Store or App Store sets the rules. The same is true for any platform that is controlled by a single authority.

There is no my way or the highway approach with decentralized apps because no single authority governs them. We saw how Steem enables brands to create apps and allows them to monetize and build a community. Similarly, Ethereum, EOS, NEO, Tron, Cardano, and other platforms allow you to create apps on their platforms. Because there is no single authority, you can communicate directly with your target audience.

Conclusion on blockchain marketing strategy and benefits

Despite its youth, blockchain technology has already made inroads into a variety of industry verticals and departments, including marketing. We’ve explained blockchain in layman’s terms to give you a good understanding of the technology and how it can be used in marketing. We also saw how it can transform the gaps and challenges you face as a marketer, as well as the benefits it can offer.

To stay ahead of the competition, marketers must evaluate and test the various alternatives and use cases discussed earlier.

A video on blockchain marketing strategy.
Last Updated on July 8, 2022 by Nansel Nanzip Bongdap