Currently, while affiliate marketing has a high conversion
rate, the process suffers from centralization where brands and content
publishers go through 3rd party platforms to interact. As described in the Nasdaq article, an affiliate marketing model includes the merchant, the
affiliate network, search engines and the content publisher (the website
owner). While this model is widely used, there is no easy way for merchants to
track how their advertising budget is spent.
A futuristic solution is to implement blockchain technology
in the system. Like in other industries, blockchain has the potential ability
to remove middlemen from the transactions side of marketing, where barriers of
engagement are removed between merchants and content publishers. The result
would shed light into an opaque industry and offer more transparency into the
ad buying process.
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