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From transparency to impact: The role of blockchain in socially responsible marketing

As the marketing landscape continues to evolve at breakneck speed, brands are searching for new ways to stand out in a crowded and competitive space. At the same time, consumers are demanding more from the brands they engage with, including a greater focus on sustainability, social responsibility, and ethical business practices.

According to a report, 85 per cent of people globally have shifted their purchase behaviour towards being greener, suggesting a demand for brands to go sustainable.

However, companies may resort to greenwashing which can be harmful as it misleads consumers and undermines genuine eco-friendly companies. And this in turn reduces the impact of informed consumer choices.

In this context, blockchain technology has emerged as a powerful tool for brands seeking to create campaigns that are not only effective, but also socially conscious. By leveraging the unique features of blockchain, brands can create campaigns that are more trustworthy, engaging, and impactful than ever before.

This emerging trend, dubbed “marketing for good,” represents a seismic shift in the way that businesses approach marketing, and has the potential to reshape the industry in profound ways.

Also Read: The challenge for female leaders is to get their voices heard: Lisa Gibbons, Blockchain Advocate

Confronting the challenges of marketing

With competition for buyer attention and brand awareness at an all-time high, it has become difficult for brands to cut through the noise and reach their target audience.

Emphasising the hurdles that marketing faces, Jason Sibley, Founder and CEO of Cleo points out that “with the rise in digital marketing spending and the importance of data, CPM (cost per thousand impressions), CPL (cost per lead), and CPA (cost per acquisition) are constantly increasing. Companies are facing steep competition in the digital era where viewer attention span is extremely valuable.”

Moreover, in recent years, traditional marketing has failed to deliver quality ads that resonate with the audience. Consumers often find themselves bombarded with irrelevant or repetitive content. Time spent viewing ads may not be rewarded efficiently, and the outcome of ad consumption may not always be in the best interest of the consumer.

A study suggests that consumers tend to ignore brands that fail to deliver relevant advertising. Almost 49 per cent of consumers admitted that they would disregard a brand if they perceive its ads to be irrelevant or if they are bombarded with too many ads. The study also revealed that 36 per cent of consumers are more likely to buy from brands that send them personalised messages.

A win-win approach to sustainable marketing

Acknowledging the challenges, brands are recognising the call for a new approach to marketing, one that aligns with the values of both brands and consumers.

“Cleo’s data-driven approach to marketing rewards users for their time and attention. By engaging with a brand’s marketing campaign, users are rewarded with a ‘good’ performed, that is verified on the blockchain and presented with an on-chain digital completion certificate. So their attention and actions contribute to promoting sustainability and social responsibility,” says Sibley. The platform empowers a variety of “for good” causes, such as removing plastic from the ocean, planting trees, or offsetting carbon footprints.

Also Read: Understanding the role of fintech, blockchain in transitioning to net zero

Through Cleo, brands have the opportunity to optimise their campaigns with compelling content while lowering cost per acquisition. Users on the other hand benefit from sustainable rewards that promote environmental changes for the planet. By offering consumers with tangible benefits for engaging with branded content, businesses can improve the quality of their ads and build stronger connections with their target audience.

How blockchain is disrupting the marketing domain

As the sustainable marketing industry continues to experience growth and evolution, the pivotal role of blockchain technology becomes evident. It represents a transformative force in the industry by enhancing transparency and accountability for all stakeholders involved.

The Cleo platform is an example of how blockchain technology is being utilised to promote sustainable marketing practices. By working with companies like Second Life, a Verra-certified ocean plastic recovery and recycling project, Cleo is taking an active role in reducing the 150 million tons of plastic that is polluting the ocean.

When users engage with a brand’s content through Cleo, they are making a tangible contribution to the betterment of the environment. Cleo rewards these contributions in the form of NFTs, which serve as digital certificates of “doing good” for the environment. This provides verifiable proof and bonds a stronger sense of purpose for users who care about sustainability, and in return are digitally recognized for making a positive ESG impact.

Cleo is built on Polygon blockchain, a highly scalable and efficient blockchain network with over 130 million unique addresses and over three million daily transactions. Polygon provides the technological layer for a secure, fully transparent, and auditable network that is vital for a sustainable marketing platform.

This provides brands with confidence that their marketing campaigns are in compliance with ESG and SDG principles, while users are assured that their contributions to the environment are digitally recognised.

The Outlook

Blockchain is increasingly being used as a tech layer to enable sustainable platforms. It rewards consumers for their time and attention while promoting positive impact for the planet.

As sustainable marketing becomes more prevalent, it could have a significant impact on society and the planet, aligning business goals with broader societal objectives. These developments mark a new chapter in the marketing landscape fueled by the advantages of blockchain technology.

 

The content was first published by The Human & Machine.

Image Credit: The Human & Machine

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