The Impact and the Potential Disruption of the Blockchain Technology on Marketing
Keywords:
Blockchain, Marketing, Disruptive Technologies, Advertising, Supply Chain Management.
Abstract
The blockchain (a distributed ledger) is commonly known as the backbone of the emerging digital cryptocurrencies, such as Bitcoin, and potentially disruptive technology for the monetary system and the financial industry. However, the impact of the blockchain technology goes beyond financial sector and could also influence supply chain management, commerce, health care, real estate, data storage, supercomputing power, decentralized notarization, marketing etc.
In this paper we examine the potential of blockchain technology to influence and even disrupt marketing. The areas of influence of the blockchain on marketing include but are not limited to creation of new products and services, ensuring trust and transparency, disintermediation, privacy and data ownership, digital identity, customer relationship management, loyalty programs, advertising, fighting click fraud, supply chain management, etc.
Since the application of the blockchain in marketing is novel, mostly conceptual, unmatured and still in development the influence and the potential disruption of this technology is envisioned for the years to come. Anyway, there are already promising projects that have potential to change the landscape in this industry and to provide first-movers advantage for the existing or the emerging brands.
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References
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32 Hongwei, L., and Peiji, S. (2011). The study on supervision model for online advertising click fraud. Manag. Sci. Eng. 5, 111–119. doi: 10.3968/j.mse.1913035X20110503.1z413
33 Pärssinen, M., Kotila, M., Rumin, R. C., Phansalkar, A., & Manner, J. (2018). Is blockchain ready to revolutionize online advertising?. IEEE Access, 6, 54884-54899.
34 ConsenSys (2020) “Blockchain for Digital Identity: Real World Use Cases | ConsenSys.” ConsenSys, 2020. https://consensys.net/blockchain-use-cases/digital-identity/.
35 Accenture (2019), Blockchain for Digital Identity. Accenture.com, 2019. https://www.accenture.com/za-en/services/blockchain/digital-identity.
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39 Min, S., & Mentzer, J. T. (2000). The role of marketing in supply chain management. International journal of physical distribution & logistics management.
40 Tribis, Y., Bouayad, H. and El Bouchti, A. (2018). Supply chain management based on blockchain: A systematic mapping study. MATEC Web of Conferences. 200. 1-8. doi: 10.1051/matecconf/201820000020
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42 IBM, (2020) “IBM Food Trust - Blockchain for the World’s Food Supply.” Ibm.com, 2020. https://www.ibm.com/blockchain/solutions/food-trust.
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44 Puligheddu, Dario, Roberto Tonelli, and Michele Marchesi. "Managing CRM with Fabric Hyperledger blockchain technology." In Blockchain and Web 3.0, pp. 223-239. Routledge, 2019
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47 Gartner, (2019) “Gartner Says Blockchain Deployments Across Financial Services Ecosystems Are At Least Three Years Away.” Gartner, 2019. https://www.gartner.com/en/newsroom/press-releases/09-16-2019-gartner-says-blockchain-deployments-across-financial-services-ecosystems-are-at-least-three-years-away
48 Jin, Fred. (2020) “The Blockchain Approach to Customer Relationship Management.” Cointelegraph. Cointelegraph, January 15, 2020. https://cointelegraph.com/news/the-blockchain-approach-to-customer-relationship-management.
49 Foxley, William. (2020) “Cere Network Raises $1.5M More to Bring Its ‘Decentralized Salesforce’ to Polkadot.” Yahoo.com. Yahoo Finance, December 23, 2020. https://finance.yahoo.com/news/cere-network-raises-1-5m-140000510.html.
50 Ur, B., Leon, P. G., Cranor, L. F., Shay, R., & Wang, Y. (2012, July). Smart, useful, scary, creepy: perceptions of online behavioral advertising. In proceedings of the eighth symposium on usable privacy and security (pp. 1-15)
51 Estrada-Jiménez, J., Parra-Arnau, J., Rodríguez-Hoyos, A., & Forné, J. (2017). Online advertising: Analysis of privacy threats and protection approaches. Computer Communications, 100, 32-51.
52 Olenski, Steve. (2017) “Digital advertising is ripe for blockchain disruption.” Forbes. December 2017. https://www.forbes.com/sites/steveolenski/2017/12/19/digital-advertising-is-ripe-for-blockchain-disruption/#416818f6327e
53 Nagaraja, S., & Shah, R. (2019, May). Clicktok: click fraud detection using traffic analysis. In Proceedings of the 12th Conference on Security and Privacy in Wireless and Mobile Networks (pp. 105-116).
54 Benes, Ross. (2018) “Five Charts Explaining the Ad Tech Tax.” Insider Intelligence. Insider Intelligence, June 18, 2018. https://www.emarketer.com/content/five-charts-explaining-the-ad-tech-tax.
2 Dimitrov, D. V. (2019). Blockchain applications for healthcare data management. Healthcare informatics research, 25(1), 51-56.
3 Monrat, Ahmed Afif, Olov Schelén, and Karl Andersson. "A survey of blockchain from the perspectives of applications, challenges, and opportunities." IEEE Access 7 (2019): 117134-117151.
4 Golosova, Julija, and Andrejs Romanovs. "The advantages and disadvantages of the blockchain technology." In 2018 IEEE 6th workshop on advances in information, electronic and electrical engineering (AIEEE), pp. 1-6. IEEE, 2018.
5 Porras-Gonzalez, E.R., Martín-Martín, J.M. and Guaita-Martínez, J.M., 2019. A critical analysis of the advantages brought by blockchain technology to the global economy. International Journal of Intellectual Property Management, 9(2), pp.166-184.
6 Chen, Yan, and Cristiano Bellavitis. "Blockchain disruption and decentralized finance: The rise of decentralized business models." Journal of Business Venturing Insights 13 (2020): e00151.
7 Cong, Lin William, and Zhiguo He. "Blockchain disruption and smart contracts." The Review of Financial Studies 32, no. 5 (2019): 1754-1797.
8 Friedlmaier, Maximilian, Andranik Tumasjan, and Isabell M. Welpe. "Disrupting industries with blockchain: The industry, venture capital funding, and regional distribution of blockchain ventures." In Venture Capital Funding, and Regional Distribution of Blockchain Ventures (September 22, 2017). Proceedings of the 51st Annual Hawaii International Conference on System Sciences (HICSS). 2018.
9 Antoniadis, I., Kontsas, S. & Spinthiropoulos, K., (2019). Blockchain Applications in Marketing. the Proceedings of 7th ICCMI.
10 Morkunas, Vida J., Jeannette Paschen, and Edward Boon. "How blockchain technologies impact your business model." Business Horizons 62, no. 3 (2019): 295-306.
11 Casino, F., Dasaklis, T. K., & Patsakis, C. (2019). A systematic literature review of blockchain-based applications: current status, classification and open issues. Telematics and Informatics.
12 Crosby, M., P. Pattanayak, S. Verma, and V. Kalyanaraman. 2016. “Blockchain Technology: Beyond Bitcoin.” Applied Innovation 2: 6–9.
13 Rawat, D. B., Chaudhary, V., & Doku, R. (2019). Blockchain: Emerging Applications and Use Cases. arXiv preprint arXiv:1904.12247.
14 Zīle, K., & Strazdiņa, R. (2018). Blockchain use cases and their feasibility. Applied Computer Systems, 23(1), 12-20.
15 Mohanta, B. K., Panda, S. S., & Jena, D. (2018, July). An overview of smart contract and use cases in blockchain technology. In 2018 9th International Conference on Computing, Communication and Networking Technologies (ICCCNT) (pp. 1-4). IEEE
16 Sihi, D. (2020). Impacts of Blockchain Technology in Marketing. In Advances in Digital Marketing and eCommerce (pp. 25-30). Springer, Cham.
17 Fleischmann, M. & Ivens, B., (2019), January. Exploring the role of trust in blockchain adoption: an inductive approach. In Proceedings of the 52nd Hawaii international conference on system sciences.
18 Coita, D.C., Abrudan, M.M. & Matei, M.C., (2019). Effects of the blockchain technology on human resources and marketing: an exploratory study. In Strategic Innovative Marketing and Tourism (pp. 683-691). Springer, Cham.
19 Ferrag, M.A., Maglaras, L. & Janicke, H., (2019). Blockchain and its role in the internet of things. In Strategic Innovative Marketing and Tourism (pp. 1029-1038). Springer, Cham.
20 Rejeb, A., Keogh, J.G. & Treiblmaier, H., (2020). How Blockchain Technology Can Benefit Marketing: Six Pending Research Areas. Frontiers in Blockchain, 3, p.3.
21 Lorne, F.T., Daram, S., Frantz, R., Kumar, N., Mohammed, A. & Muley, A., (2018). Blockchain Economics and Marketing. Journal of Computer and Communications, 6(12), pp.107-117.
22 Ertemel, A.V., (2018). Implications of blockchain technology on marketing. Journal of international trade, logistics and law, 4(2), pp.35-44.
23 Brauer, Jimmy, and Björn Linnala Eriksson. "Blockchain's influence on digital marketing: An exploratory study examining blockchain in relation to big data and digital marketing." (2020).
24 UFOstart (2021), “Blockchain Marketing Projects.”, https://www.ufostart.com/blockchain-marketing.
25 Daley, Sam (2019), “14 Ways Blockchain in Marketing and Advertising Is Getting Our Attention.” Built In, 2019. https://builtin.com/blockchain/blockchain-marketing-advertising-examples.
26 Mire S. (2018), Blockchain In Marketing: 7 Possible Use Cases., available at : https://www.disruptordaily.com/blockchainuse-cases-marketing/
27 Golosova, J., & Romanovs, A. (2018, October). Overview of the blockchain technology cases. In 2018 59th International Scientific Conference on Information Technology and Management Science of Riga Technical University (ITMS) (pp. 1-6). IEEE.
27 Nirolution (2019), “Best 9 Blockchain Marketing Use Cases! Amazing Case Studies.” Nirolution, https://nirolution.com/blockchain-marketing-use-cases/.
28 Gartner, (2019) “Gartner 2019 Hype Cycle for Blockchain Business Shows Blockchain Will Have a Transformational Impact across Industries in Five to 10 Years.” Gartner, 2019. https://www.gartner.com/en/newsroom/press-releases/2019-09-12-gartner-2019-hype-cycle-for-blockchain-business-shows.
29 Dinev, T., Hu, Q., and Yayla, A. (2008). Is there an on-line advertisers' dilemma? A study of click fraud in the pay-per-click model. Int. J. Electron. Commer. 13, 29–60. doi: 10.2753/JEC1086-4415130202
30 Chan, Rosalie. (2019) “Cambridge Analytica Whistleblower on How the Firm Used Facebook Data - Business Insider.” Business Insider. Business Insider, October 5, 2019. https://www.businessinsider.com/cambridge-analytica-whistleblower-christopher-wylie-facebook-data-2019-10.
31 Leeflang, P. S., Verhoef, P. C., Dahlström, P., & Freundt, T. (2014). Challenges and solutions for marketing in a digital era. European management journal, 32(1), 1-12.
32 Hongwei, L., and Peiji, S. (2011). The study on supervision model for online advertising click fraud. Manag. Sci. Eng. 5, 111–119. doi: 10.3968/j.mse.1913035X20110503.1z413
33 Pärssinen, M., Kotila, M., Rumin, R. C., Phansalkar, A., & Manner, J. (2018). Is blockchain ready to revolutionize online advertising?. IEEE Access, 6, 54884-54899.
34 ConsenSys (2020) “Blockchain for Digital Identity: Real World Use Cases | ConsenSys.” ConsenSys, 2020. https://consensys.net/blockchain-use-cases/digital-identity/.
35 Accenture (2019), Blockchain for Digital Identity. Accenture.com, 2019. https://www.accenture.com/za-en/services/blockchain/digital-identity.
36 Brave Browser, (2021). “About Brave Rewards | Brave Browser.” Brave Browser, January 5, 2021. https://brave.com/brave-rewards/
38 Connectbit (2019)“Blockchain Applications: 62 Killer Ideas You Can Do (2020).” Connectbit, June 12, 2019. https://www.connectbit.com/blockchain-applications/.
39 Min, S., & Mentzer, J. T. (2000). The role of marketing in supply chain management. International journal of physical distribution & logistics management.
40 Tribis, Y., Bouayad, H. and El Bouchti, A. (2018). Supply chain management based on blockchain: A systematic mapping study. MATEC Web of Conferences. 200. 1-8. doi: 10.1051/matecconf/201820000020
41 MediLedger (2020): Pharmaceutical industry's blockchain network - Ledger Insights - enterprise blockchain. (2020). Retrieved 18 December 2020, from https://www.ledgerinsights.com/mediledger-pharmaceutical-blockchain/
42 IBM, (2020) “IBM Food Trust - Blockchain for the World’s Food Supply.” Ibm.com, 2020. https://www.ibm.com/blockchain/solutions/food-trust.
43 Yafimava, Darya. (2019)“Blockchain In the Supply Chain: 10 Real-Life Use Cases and Examples | OpenLedger Insights.” Openledger.info, 2019. https://openledger.info/insights/blockchain-in-the-supply-chain-use-cases-examples/.
44 Puligheddu, Dario, Roberto Tonelli, and Michele Marchesi. "Managing CRM with Fabric Hyperledger blockchain technology." In Blockchain and Web 3.0, pp. 223-239. Routledge, 2019
45 Meyers, Sarah. (2019) “5 Ways Blockchain Will Change CRM for the Better.” Rolustech. Rolustech, Jun 14, 2019. https://www.rolustech.com/blog/5-ways-blockchain-will-change-crm.
46 Jones,Patricia. (2018) “CRM | Best CRM Software for SMB | ConvergeHub.” Best Small and Medium Business CRM Software - ConvergeHub, November 2018. https://www.convergehub.com/blog/crm-database-blockchain-perfect-combination-customers
47 Gartner, (2019) “Gartner Says Blockchain Deployments Across Financial Services Ecosystems Are At Least Three Years Away.” Gartner, 2019. https://www.gartner.com/en/newsroom/press-releases/09-16-2019-gartner-says-blockchain-deployments-across-financial-services-ecosystems-are-at-least-three-years-away
48 Jin, Fred. (2020) “The Blockchain Approach to Customer Relationship Management.” Cointelegraph. Cointelegraph, January 15, 2020. https://cointelegraph.com/news/the-blockchain-approach-to-customer-relationship-management.
49 Foxley, William. (2020) “Cere Network Raises $1.5M More to Bring Its ‘Decentralized Salesforce’ to Polkadot.” Yahoo.com. Yahoo Finance, December 23, 2020. https://finance.yahoo.com/news/cere-network-raises-1-5m-140000510.html.
50 Ur, B., Leon, P. G., Cranor, L. F., Shay, R., & Wang, Y. (2012, July). Smart, useful, scary, creepy: perceptions of online behavioral advertising. In proceedings of the eighth symposium on usable privacy and security (pp. 1-15)
51 Estrada-Jiménez, J., Parra-Arnau, J., Rodríguez-Hoyos, A., & Forné, J. (2017). Online advertising: Analysis of privacy threats and protection approaches. Computer Communications, 100, 32-51.
52 Olenski, Steve. (2017) “Digital advertising is ripe for blockchain disruption.” Forbes. December 2017. https://www.forbes.com/sites/steveolenski/2017/12/19/digital-advertising-is-ripe-for-blockchain-disruption/#416818f6327e
53 Nagaraja, S., & Shah, R. (2019, May). Clicktok: click fraud detection using traffic analysis. In Proceedings of the 12th Conference on Security and Privacy in Wireless and Mobile Networks (pp. 105-116).
54 Benes, Ross. (2018) “Five Charts Explaining the Ad Tech Tax.” Insider Intelligence. Insider Intelligence, June 18, 2018. https://www.emarketer.com/content/five-charts-explaining-the-ad-tech-tax.
Published
2021-02-24
Section
Economics (Microeconomics, Macroeconomics, International Economics)
