BSV blockchain technology is redefining who can act as a marketing partner, while making it easier for companies to connect with influencers in a way that promises to significantly reform this space.
Last week’s CoinGeek conference in Zurich featured a panel dedicated to performance and affiliate marketing, hosted by CoinGeek’s leading gaming industry reporter Becky Legero Fontana. She’s joined by Luke Rohenaz, co-founder and CEO of TonicPow. Frank Vertoli, Co-Founder and Managing Partner, Net Conversion; And Lee Ann Johnston, CEO and founder of AffiliateINSIDER.
For starters, Rohinaz described TonicPow as a merchandising market where brands and influencers can shop for each other. TonicPow builds tools that allow both sides of these deals to eschew a one-size-fits-all model in favor of mutually beneficial custom agreements.
Over the past 14 years, Vertolli’s Net Conversion has specialized in paid media and end-to-end analytics, with a primary focus on travel and tourism as well as a few other key sectors.
Johnstone Corporation is an agency, training company, and media content center that helps brands build successful affiliate marketing programs in a number of sectors, predominantly iGaming, while also operating in the retail space.
Vertolli said the digital marketing monopoly of Google and Facebook continues to expand, which has its benefits in terms of scale but also raises concerns about privacy, censorship, and corporate personal interests. Advertising has become an incredibly noisy environment based on who can scream the loudest and make the most noise by buying the most impressions.
Johnston said the digital marketing ecosystem has been based on legacy systems and processes for so long that the current setup includes multiple layers of solutions (tracking, reporting, serving ads, etc.) There is a clear linear link between the brand and the customer.
As a former affiliate, Legero Fontana said one of her most important work has been month-end accounts to see how much money a partner company makes. Having all of this data on one platform would not only simplify these calculations but would also have allowed them to devote more time to performing other customer-specific tasks.
Vertolli said that all companies, regardless of size, are drowning in data produced by different aspects of their operations. There is value to this data but the challenge is to organize it in a structured, open, and readable way to allow you to make practical business decisions and reach consumers in a more efficient and effective manner.
Rohinaz said that the blockchain is naturally suitable for data interoperability in that it is a neutral database that can be accessed by many entities. Structuring the data in the same way from one company to another allows this data to be easily read and processed.
everything is ready
Johnston noted that nowadays, with supercomputers in all of our pockets, pretty much anyone can become an affiliate, and any influencer with a social media channel can create and monetize content. That segment grew 10% during COVID, Johnston said, twice the rate of growth in paid advertising channels. Expanding the scope of this sector while increasing transparency is critical.
Rohinaz notes that TonicPow records every payment and action, with the payments happening on the blockchain itself. TonicPow uses metadata with each transaction describing the type of transaction and campaign it was associated with, but it doesn’t log anything private or personally identifiable.
The blockchain offers an unalterable public record, where everyone can refer to it and piece together the entire story. Furthermore, the information is available for anyone to read, allowing third parties to create independent analysis tools to understand the nature of the Earth without the need for registration.
Who do you trust?
Blockchain technology can also help avoid the friction that tends to arise when an affiliate’s tracking system tells one story about the traffic they drive to a customer while the customer’s tracking solution data tells a different story.
Vertolli repeated a phrase he had heard earlier at the conference, the search for a “single source of truth.” He remembers his past experience in the travel industry, how any number of entities claimed the same traveler to be their “customer” as they moved through airlines, hotels and theme parks.
Vertolli added that some transactions (real estate, new cars, holidays, etc.) can be the result of days/weeks/months of research, making it difficult to determine the deciding factor in completing a transaction. In many cases, everything that happened right before the most sought-after procedure is credited to him.
Larger data sets provide greater clarity of what is happening along the consumer’s journey and how to compensate accordingly for actual interest, engagement, and conversion. BSV can better spread value across the entire chain of influence but the current process is still heavily skewed towards this ‘last click’ model.
Johnston added that affiliate managers/digital marketers are responsible for ensuring that their marketing budgets are spent optimally to ensure the best return on investment. Having more transparency across all customers regarding their ‘hot touch’ points would reduce marketing spend to deadlock.
Pay to spray and pray
Johnston hoped that products like TonicPow could enable companies to reach a “small pocket” audience that traditional “spray and pray” ads can’t. TonicPow’s use of BSV, with its ability to cost-effective micropayments, provides the means to deliver truly targeted and customized connections to the people you want to reach.
Reaffirming his company’s aversion to one-size-fits-all, Rohinaz said TonicPow was in the process of allowing companies to negotiate rates for the promoters they choose to partner with. Likewise, TonicPow provides greater clarity for advertisers to assess whether an existing deal is providing the valuable traffic they originally sought.
There are some protections in place, but Rohinaz noted that TonicPow advertisers/promoters who have reached a certain level receive instant payouts. The moment they get a click, they will receive a notification on their phone or wallet (if novice clients lack wallets, TonicPow will create one for you to hold your winnings).
Johnston said late payments remain a huge problem for affiliate marketers and influencers who are already Get their audience, along with the products they are promoting and the accompanying messages. Without immediate payments, affiliates of Good Thing may lack the ability to reinvest their resources and scale their efforts to appropriately capitalize on this momentum.
Johnston said TonicPow provides a metric, and it sits somewhere between the old “refer a friend” scheme and the more complex affiliate economy. The goal is to constantly add new advertisers and influencers alike, Rohinaz said, adding that this is a good time for both sides of this coin to dip their toes into the waters of TonicPow.
Vertolli concluded by noting that this entire industry was all about getting to the right person with the right message at the right time. The introduction of BSV blockchain technology means that companies do not have to reach as many people as they once did because they can now target more qualified people who are more receptive to your message. Traditional channels in this space will continue to exist, but the blockchain-based affiliate/influencer channel will soon deliver results well above its weight class.
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