Is Blockchain Technology Changing Affiliate Marketing?
Blockchain technology was first introduced as a solution to many of the issues arising from international e-commerce, continually hampered by exchange rates and currency fluctuations. It provided a level playing field, capable of tracking ownership of many different applications, from documents to assets.
The technology can be traced back to its first inception, Bitcoin. Established nearly a decade ago, this was a digital currency where the value was dependent on a transaction transferring the asset between Bitcoin wallets in a blockchain. Within these wallets was an exclusive piece of data, known as a seed or private key. This kernel of information provided the mathematical proof that the transfer had been made by the bona vide wallet owner.
How does blockchain impacts affiliate marketing
Blockchain is an extremely specialized database, which can be applied in a variety of different ways. The process of affiliate marketing relies on affiliates taking on the role of point-of-sales representatives. Theirs was the additional level of e-commerce activity between retailer and customer, allowing flexibility for the former in terms of allowing promotional responsibilities to be deferred.
Because online retailing is expanding at such an exponential rate, affiliate networks such as Top Offers are able to tap into new markets all the time. This offers marketers the opportunity to sign up to potentially lucrative programs. With all this market activity running alongside the development of blockchain technology, it is inevitable there will be a degree of crossover.
Affiliate marketing is a business activity that has been transcending international boundaries for some time. Larger retail organizations such as Amazon and Apple have enough clout to attract marketers to sign up to their affiliate programs from any part of the globe. Bitcoin development is running alongside these evolving e-commerce outlets, the fluctuations of its performance constantly scrutinized by business analysts keeping fingers on the ebb and flow of currency performance in the same context as international affiliate marketing. Both retailers and their affiliates can pay close attention to how bitcoin is faring alongside traditional currency.
An attractive aspect of bitcoins for investors is they way they can be exchanged for other currencies or products. This makes them a valuable commodity for global trade. The extent to which bitcoin technology has taken off can be illustrated by considering the statistics. Three years ago, around 100,000 traders were including this virtual currency in their portfolios. Last year this had rocketed to a figure that has been estimated as anything between three and six million.
Will this rise truly change affiliate marketing?
Blockchain technology will certainly make transactions more economical, with virtual currency’s ability to circumvent the fees charged on currency exchange. In addition, the secure aspect of blockchain databases will guarantee payments become more streamlined; not only efficient by more economical.
The technology is particularly versatile at detecting fraudulent transactions, which is a bonus for retailers and marketers wishing to keep tabs on the source of whoever is clicking on those all-important affiliate links. For the latter, it can only inspire greater confidence in the products they are promoting.
Blockchain technology is so much more powerful than many of the longer-standing types of security software. It will also give them a far more accurate idea of the background of the site visitors who are alighting on landing pages. This will give them the confidence to target the appropriate customer base more precisely when conducting proactive promotion of products and services.
Blockchain technology will not completely revolutionize affiliate marketing, but it will provide a valuable tool to allow those involved to get more out of their business strategies.