RachelBlockchain technology has the potential to revolutionize the way we think about several things, including influencer marketing. Due to the disruption brought about by blockchain, decentralized platforms and tokenized incentives could change the way brands and influencers interact and create a new era of transparency and trust.
The history of influencer marketing can be traced back to the early days of social media, when experts and thought leaders began to use platforms like Twitter, YouTube and Instagram to connect with their fans and followers. You probably also have a handful of influencers you follow and value opinions of. We all do.
But, as the market has grown, concerns have emerged about fraud, fake followers, lack of transparency, and even compromises on quality of content.
Enter blockchain technology, which allows for the creation of decentralized platforms where data is stored on a distributed ledger and can be verified by multiple parties. This creates a level of independence, transparency and trust that was previously not possible.
Let’s see what change it has and will have on the influencer and content creation world.
Experimented with Influencer Marketing in Blockchain?
Decentralized platforms are experimenting with and making use of tokens to incentivize influencers to create and share high-quality content. These tokens can be used to purchase goods and services on a platform, or can be exchanged for other cryptocurrencies.
These activities create a new form of tokenized incentive that could change the way influencers are compensated for their work.
Before it was just cash or perhaps some PR goody bags, but now there are a variety of tokenized incentives that are being experimented with for influencer marketing in the blockchain space. Some examples include:
1. Reward Tokens
Decentralized platforms like Steemit and Hive, which are built on the Steem blockchain, allow influencers to create and share content, and be rewarded with tokens for their efforts. These tokens can then be used to purchase goods and services on the platform, or exchanged for other cryptocurrencies.
2. Campaign Tokens
Platforms like indaHash, which is a blockchain-based platform that connects brands with influencers. Brands can create campaigns, and influencers can apply to participate. Once a campaign is completed, influencers are rewarded with indaHash tokens, which can be used to purchase goods and services on the platform.
3. Staking Tokens
Some platforms are experimenting with a “staking” model, where influencers can “stake” their tokens to earn rewards for creating and sharing high-quality content. The more tokens an influencer stakes, the higher the rewards they can earn.
4. NFT Tokens
Some platforms are experimenting with the use of non-fungible tokens (NFTs) to represent ownership of a piece of content, whether it’s a gaming collectible or even a single tweet. This could allow influencers to monetize their content in new ways, and provide brands with a way to verify the authenticity of the content they are buying.
5. Utility Tokens
Platforms like Dtube or Torum use utility tokens to allow influencers access to exclusive features or services on the platform. They can be used for things like unlocking additional analytics or tools to help an influencer grow their audience.
These are just a few examples of the tokenized incentives being experimented with for influencer marketing in the blockchain space, and new models are likely to emerge as the technology and market evolves.
How Influencer Marketing works on Platforms?
Influencer marketing on decentralized platforms is expected to work in a similar way as it does on traditional centralized platforms, but with foundational differences.
Because blockchain is at the center of decentralized platforms, there are key main features that differentiates influencer marketing on decentralized platforms. Here’s a side-by-side comparison of them.
| Centralized Platforms | Decentralized Platforms | |
| 1. Transparency | Transparency and trust can be more difficult to achieve due to a lack of verifiable data and potential for fraud. | Data is stored on a distributed ledger that can be verified by multiple parties, creating a level of transparency and trust. |
| 2. Compensation | Influencers are typically compensated with cash or other forms of currency. | Influencers are compensated with tokens, which can be used to purchase goods and services on the platform or exchanged for other cryptocurrencies. |
| 3. Community | Influencer selection, promotion, and rewards are typically controlled by the platform or brand. | The community plays a key role in the selection, promotion, and rewards of influencers. |
| 4. Censorship | Influencers may be censored or have their accounts suspended for expressing certain opinions or breaking platform rules. | Not controlled by any central authority, which means that they can’t be censored, allowing influencers to express their opinion freely without fear of censorship. |
| 5. Cost | Typically charge high fees and commissions for the use of their platform and services. | Can be more cost-effective than traditional centralized platforms as they don’t require intermediaries, which can help to lower fees and commissions |
| 6. Data | Influencers data is usually owned by the centralized platform, which can be used for data analysis and monetization. | Influencers can retain ownership of their data, including their audience and engagement metrics. |
| 7. Verification | Audience and engagement can be difficult to verify, making it easier for fake followers and engagement to exist. | Audience and engagement can be verified by multiple parties through the use of blockchain technology, making it harder for fake followers and engagement. |
Influencer marketing and Content Creation
Decentralized platforms have the potential to greatly and positively contribute to influencer marketing in several ways. Let’s look at them briefly.
Since these platforms don’t have central power, they store data on a distributed ledger that can be verified by multiple parties. This creates a level of transparency and trust that was previously not possible. Brands and influencers can use these platforms to prove the authenticity of their followers and engagement, which can help them to build stronger relationships.
Decentralized platforms can more often than not be community-driven, which allows influencers to have more control over their content and compensation. This could lead to a more equitable distribution of rewards and empower influencers to make more strategic decisions about the content they create and share. Right now on centralized platforms, creators are torn between quantity and quality.
Moreover, in order to support their channels they either have to rely on donations, affiliate earnings, sponsorships, or earnings from the certain network.
But not everyone can get hundreds of thousands of followers and millions of views, which are the basic criteria to get paid by brands. So quality content is often deprioritized for sensational, trending bits.
These platforms can also be more cost-effective than traditional centralized platforms as they don’t require intermediaries, which can help to lower fees and commissions. This can benefit influencers, especially those with smaller followings, who may struggle to monetize their content on traditional platforms.
Additionally, decentralized networks and channels are not controlled by any central authority, which means that they can’t be censored. This allows influencers to express their opinion freely without fear of censorship, which can lead to more authentic and diverse content. There are some dangers to this, but hopefully they’ll be managed when mass adoption happens and the time comes.
Existing decentralized social media platforms such as Steemit allow influencers to create and share content, and be rewarded with tokens for their efforts. These tokens can then be used to purchase goods and services on the platform, or exchanged for other cryptocurrencies.
Another example is the platform indaHash, which is a blockchain-based platform that connects brands with influencers. Brands can create campaigns, and influencers can apply to participate. Once a campaign is completed, influencers are rewarded with indaHash tokens, which can be used to purchase goods and services on the platform.
In the future, we could see the rise of decentralized autonomous organizations (DAOs) that are governed by a community of stakeholders, rather than a centralized authority. This could allow influencers to have more control over their content and compensation, and create a more equitable distribution of rewards.
The most popular of all, NFTs, can be used to represent ownership of a piece of content, such as a tweet or Instagram post. This could allow influencers to monetize their content in new ways, and provide brands with a way to verify the authenticity of the content they are buying.
Overall, the combination of blockchain technology and influencer marketing has the potential to create a new era quality content creation. These initiatives could completely change the way we think about content and distribution, and create new opportunities for brands and influencers alike.
We’ve just mentioned some real-life examples of blockchain in influencer marketing and there are a lot of other platforms, too, which are built on blockchain technology and working in the same domain.
Hopefully you’ve found a reason to give them a try.
Finally, we can say that blockchain, although very young, has the potential to revolutionize the influencer marketing industry by providing transparency, trust, and innovative ways to monetize content.
The future looks bright for those who are willing to embrace the new era of decentralized platforms and tokenized incentives.
Julia
