4 Ways Blockchain will impact Influencer Marketing

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Photo by: Jasmin Awad

Influencer marketing is a popular digital marketing tactic. Yet, as effective as it is, there can be issues. Verifying authenticity of followers can prove difficult. Understanding how to set prices and determine ROI has proven to be challenging. Plus, with so many moving parts, influencer marketing is time-consuming to manage. Blockchain technology can help address many of these concerns.

What is Blockchain?

Perhaps you’ve heard of Bitcoin and like me, watched the documentary “Banking on Bitcoin” on Netflix. This digital currency, though, is only part of the blockchain. All kinds of transactions can be requested, validated, verified, and added to the digital ledger of the blockchain.

According to Alex Nascimento, co-founder and faculty of the UCLA Blockchain Lab, “The benefits of blockchain are the use of this decentralized, immutable and transparent new form of database to mainly eliminate the need of a middleman in any transaction where parties don’t fully trust each other.”

Blockchain’s benefits include:

  • Data isn’t stored in any single location

4 Ways Blockchain will Impact Influencer Marketing

The main use of blockchain today is in finance with blockchain enabling transactions without a middleman. The technology is often supported by identity management processes, which can help users preserve their online identity from theft. But, how will blockchain make a difference in influencer marketing? Here are four ideas.

  1. Payment Facilitation. Blockchain’s decentralization enables transactions without paying fees to financial institutions. A large brand with relationships with many different micro-influencers could save marketing budget dollars by doing its business interaction with the influencers directly through blockchain. This is especially helpful when dealing with influencers all over the globe. Since brands are always looking for influencers who often represent themselves (i.e. they don’t come packaged with media buying firms), the ease of transferring money reliably via blockchain will have advantages for both brand and influencer.

As ad dollars move to influencers, its wise for marketers to understand how to leverage Blockchain technology in their marketing efforts.

About Jeff

Email me at jeff@themeadecompany.com if you have any questions or would like to learn more about how I help marketing agencies earn status, attract new customers and grow their business.

You can connect with me on Linkedin.

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Agency Advisor :: I help marketing agencies earn status, attract new customers and grow their business.

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