Modern global marketing is constantly changing because it relies on the latest technologies that affect our daily lives.
Innovations made during the latter half of the 20th century have altered our lifestyle forever, with tech inventions as such as Artificial Intelligence, the Internet and big data making such an impact that they have the potential to follow us every second of our busy daily routine.
This decade produced a new cornerstone of world technological and financial fields – blockchain. If the concept of cryptocurrency took a while to permeate the business world, today you would find it difficult to find anyone who isn’t checking out the regular rise and fall of bitcoin in the global currency market.
Investors and marketing specialists are constantly looking for the hottest market trends, and blockchain is providing much food for thought. So how exactly will blockchain influence the future?
Let’s explore this issue from two different sides. Firstly, it’s important to consider what impact that blockchain can make on the process of affiliate marketing. Secondly, how can we apply affiliate marketing in the sphere of blockchain and cryptocurrencies?
What the story of cryptocurrency presupposes
In 2008 the anonymous trader who hid behind the nickname Satoshi Nakamoto made up an encoding protocol that could be used in peer-2-peer commerce. He presented bitcoin to the world audience. It quickly drew the attention of not only IT specialists and hackers but the interest of mass market as well.
At this time bitcoin cost thousands of dollars; in 2009 one American cryptographer bought a pizza for 10,000 bitcoins because he couldn’t find anybody willing to buy them even for 50$.
Those speculators luck enough to have bought a lot of bitcoins in those early years are now successful millionaires.
While the financial market developed the process of bitcoin trading, a new generation of cryptocurrency, called altcoins (alternative bitcoins), tried to repeat their “Father’s” way of success.
Where do bitcoins come from?
Like any other currency for being valued, bitcoins have their limit. All bitcoins are made with a help of the special process which is called bitcoin mining. According to this process, the bitcoin is produced by the electric power of special computers and encoded with given data.
The main point is that cryptocurrency is a by-product of a crucial technology – the blockchain.
The usage of the blockchain in affiliate marketing
The most valued issue for currency traders is the application of blockchain for the affiliating process in order it will become cheaper and easier.
The clearest example is the bitcoin usage for money transactions in place of ordinary paper money. These particular transactions make the process of verifications and payment much more comfortable.
But for any affiliate specialist in digital marketing and fraud malpractice detection, the most important thing is how to check the source of clicks and how to be sure that people who click are real and not a result of automatic actions.
In reality, this process is mostly being undertaken automatically, assisted by programs for affiliating, ad markets, and demand and supply-side platforms. The specialists communicate through various channels and set their price-per-click, conversion, sale and so on.
This communicative contact is not so ideal as it can be open to manipulation from hackers etc. For one, all data is centered in main center location – the affiliate program server – making it unprotected and therefore exposed to errors and hacking.
If this server is destabilized and out of action, there is a potential for its information to be lost, leading to a situation where people lose a huge amount of money and important data.
The blockchain can make such a situation non-existent. All the information is saved on all the computer gadgets in the network that are connected with each other. Moreover, it’s good to use smart contracts to check that all the tracking process is absolutely accurate and fraud is prevented.
The appropriate way is to use a smart contract in place of tracking pixel. When a person clicks on the referral link, a smart contract is made with a help of a unique ID of an individual visitor, recording the timestamp and the activity. This data will be opened to both – the advertiser and the publisher – and will never be under any manipulation.
Auditing, as well as advertising verification, can work rapidly and efficiently. Avoiding the using an auditing company, which are invariably of a high cost, an advertiser has an opportunity to pull an ad from the server and run it with the blockchain system to check it for any tampering and make the verification of any irregularities (such as non-real browser seeing an ad, dubious visitor behavior etc).
Smart contracts can actually work pretty well with DSPs and SSPs, according to the characteristics of parameters of both technologies.
In that time when supply-side platforms give access to the buying of individual attitude in real-time, parametric smart contracts give a chance to simplify the whole transaction process, while allowing you to track and store any of the transactions.
Can affiliate marketing be executed in the blockchain/cryptocurrency sphere?
Blockchain and cryptocurrency are considered to be the top technologies. In recent years they become more and more popular, involving a wider audience. That is why many users view this time as the best for becoming involved in the blockchain affiliate game, when the market is saturated.
The point is that being interested you can become a member of the affiliate program where you call miners in. The advantages are you get a percentage of their income, in addition to getting a fixed amount of cryptocurrency in return.
Still, not everything is so clear in this business. For some, the market is rather unstable, and even the bitcoin as a stable value can swing significantly from month to month.
Moreover, some settled affiliate programs exist in this niche which means one has to be rather educated. Otherwise, you can end up with a financial disaster, especially when the affiliate program or the currency you work with a turn out to be a failure.
There is always a possibility of generating a good profit if you know what to do, but the game is still risky, which is why you have to be competent and aware of every step.
The blockchain is presenting more and more promising technology, especially in the fiscal insurance and medicine sectors. Affiliate marketing is the best place for its application, so always ensure you stay informed about changes in advance.