Changes To Digital Music Ownership And Marketing
Marketing for musicians has been complicated and difficult. Piracy was a rampant issue in the early 2000s when digital music became popular. Now, many people use applications such as Spotify, Tidal, and iTunes to stream music. Though these platforms significantly cut back on piracy, they still put the musicians in poor situations. The artist receives only a small fraction of the transaction – less than a penny – each time his or her music is played.
People from the music industry have started projects that use blockchain and, ideally, eliminate the need for intermediary applications and platforms such as Spotify and iTunes. One of the projects, Tao, encourages the idea that bands sell crypto tokens directly to their fans. Consumers purchase music, live shows or merchandise in exchange for tokens. Bands may also set a time limit on tokens with the blockchain feature, which would determine when tokens are no longer valid.
Musicians would be able to market directly to their fans with a blockchain system in place, such as the one Tao imagines. Instead of losing money on intermediaries, they could be paid fairly and take control of their own digital marketing. Other industries are also considering the concept of using a token or credit system between advertisers and consumers.
Fewer, More Reliable Influencers
Numerous influencers run accounts and profiles with large numbers of followers all over the internet, specifically on social media platforms. Many companies capitalize on the power of these influencers by having them promote their brands on their personal accounts.
Involving influencers can be an effective marketing tool, but it can cause problems if paired with the wrong influencer. Some social media stars have a large number of bots as followers, giving the impression they are hugely popular, while only a small portion of their “followers” are real people. Partnering with an influencer with a following of bots is obviously effective for a company trying to grow its brand. Blockchain technology will give companies the ability to see if an influencer has real people or bots as followers. This feature will reduce the number of influencers by eliminating the ones without a real following and leaving the ones who have a true impact on a large group of people. Companies who partner with influencers will have more confidence that the relationship will have an impact on their success.
Increased Accountability For Publishers
Prior to blockchain technology, advertisers had very few details about exactly how the publishers were using their ads. Ad fraud and the high expense to have ads published makes transparency vital. Blockchain’s transparency lets advertisers identify exactly who is seeing their advertisements, ensuring they are marketing to real people, not bots.
The Future Of Blockchain Technology
The impact and significance of blockchain technology is still unknown. Industry experts can predict how blockchain technology will affect digital marketing, but it will most likely be awhile before it truly penetrates the digital marketing sphere.