The Power of Transparency: Revolutionizing Influencer Marketing with Blockchain Technology | by Sohil Shah | Spreadd | May, 2023

In the world of advertising, transparent and authentic relationship is what drives the long-term association between a brand and its consumers. With digital marketing encroaching more space in the past few years, content creators and social media influencers have become irreplaceable tools. By leveraging an influencer’s reach and influence, brands can tap into the minds of consumers through digital campaigns and influencer marketing.

However, even digital campaigns and brands and creators have come under heavy criticism today. Consumers are becoming increasingly skeptical of the genuity of such campaigns. Irrespective of the creator’s number of followers, a survey claims that over 70% of customers demonstrate annoyance when that creator lacks transparency about a sponsored post. Their skepticism stems from a combination of oversaturation, lack of disclosure, fake engagement, inconsistent brand alignment, and the presentation of unrealistic standards. Therefore, consumers now seek more than just polished campaigns. They want behind-the-scenes glimpse into the process, wanting to understand the inner workings of digital campaigns. They desire a transparent system that empowers them to make informed decisions and evaluate the authenticity of a campaign. They refuse to be taken for granted and insist on brands being open and honest.

Transparency in Influencer Marketing

Transparency has become a fundamental element in winning over consumer trust. By embracing transparency, brands can address consumer skepticism head-on, showcasing their commitment to authenticity and fostering a stronger connection with their audience.

Transparency can take many forms in influencer marketing. For example, brands can be transparent about selecting influencers for their campaigns. They can provide information about the criteria used to choose influencers and the process of negotiation and compensation.

Additionally, brands can be transparent about the content created by influencers. This can include disclosing any sponsored content or paid promotions. Brands can also encourage influencers to disclose any free products or services they receive from the brand. By being transparent about the content created by influencers, brands can ensure that their audience knows what is sponsored and what is not, thereby enhancing the campaign’s authenticity.

Blockchain’s Impact on Influencer Marketing

With the rise of Web 3, blockchain has significantly emerged as a champion technology. Gone are the days when blockchain technology was limited to cryptocurrencies. Many use cases have sprouted over the last few years. Influencer marketing is another notch in blockchain’s proverbial belt and can help combat many issues, especially regarding transparency. From enabling traceability and transparency in influencer marketing campaigns to transparency in payment dispersal, blockchain technology can be integrated by brands to get an edge over their competitors.

Let’s dive deeper and look into how blockchain technology can find its way into the various aspects of influencer marketing and digital campaigns.

1. Verify the genuity of content and NFTs: Blockchain technology is immutable, which means any data stored on the blockchain cannot be altered and is time-stamped. By leveraging blockchain technology, brands can ensure that the content posted by influencers remains authentic and unaltered. Each piece of content, such as a sponsored post, can be recorded on the blockchain. This creates an immutable record that can be referenced by brands, influencers, and consumers alike, preventing any tampering or fraudulent activity. Another way to ensure the quality of content is to create NFTs’ which are blockchain-based tokens representing a unique asset. These are original pieces of digital content that brands can use in their campaigns and make them stand out.
2. Real-Time Performance Tracking: Blockchain technology revolutionizes monitoring and evaluating influencer marketing campaigns by offering real-time tracking capabilities. The data recorded on the blockchain allows brands to track key metrics, such as engagement rates, reach, and conversion rates, in a transparent and immutable manner. This data transparency empowers brands to make data-driven decisions, optimize their campaigns, and ensure that their marketing goals are being met.
3. Safeguarding Data Privacy: Blockchain technology offers enhanced data privacy and security. Personal information, such as influencer or consumer data, can be encrypted and stored securely on the blockchain, protecting it from unauthorized access or data breaches. This level of data privacy reassures consumers and influencers that their information is protected.
4. Validation of Genuine Followers: Blockchain can help identify fake followers of social media influencers by creating a transparent and secure system. With blockchain, information about followers and their activities can be recorded in a way that cannot be changed or manipulated. Brands and others can then verify this information to ensure its authenticity. By analyzing the patterns of follower engagement, such as likes, comments, and shares, blockchain can detect any abnormal or suspicious behavior. This helps to weed out fake followers and provides a reliable way to measure the genuine reach and impact of an influencer’s content. In simpler terms, blockchain acts like a digital detective, ensuring that an influencer’s followers are real and not just artificially created to inflate their popularity.
5. Enhanced Transparency in Transactions: Blockchain’s decentralized ledger enables transparent and secure transactions between brands and influencers. Smart contracts, powered by blockchain, can automate and execute contractual agreements, such as payment terms and campaign requirements. This transparency ensures that all parties involved have visibility into the terms and conditions, minimizing disputes and enhancing trust.

As the influencer marketing landscape continues to evolve, the adoption of blockchain technology will play a crucial role in shaping a more transparent and trustworthy future for digital campaigns. Therefore, by embracing decentralized creator economy platforms that promote transparency, brands can gain a competitive edge, build trust with their audience, and foster stronger relationships with influencers.

How Spreadd is utilizing blockchain tech to promote transparency

Spreadd is a decentralized creator economy ecosystem utilizing blockchain technology at its finest. We harness the power of smart contracts and act as the ultimate escrow for milestone-based payments.

Let’s break this down for you.

When brands collaborate with influencers through Spreadd, they make an upfront payment that gets locked securely in a smart contract. This protects both the brand and the influencer, ensuring both parties’ trust in the process.

As the influencer starts their digital campaign, they achieve different milestones decided by the brands. By milestone, we mean achieving the required engagement rate within a certain time limit set by the brand. With each milestone, our automated system releases the promised payment to the influencer’s account. This guarantees timely payouts and removes any uncertainty.

Moreover, Brands can feel confident knowing that their investment is safe. Our platform ensures that influencers only receive payment when they meet and exceed expectations. In case of any issues, our dispute management system works to resolve them promptly. It’s a situation where everyone wins — trust is built, partnerships grow stronger, and the creator economy flourishes.

Our utilization of blockchain doesn’t end there. We are empowering digital creators to create shoppable content in the form of dynamic NFTs. These NFTs are unique digital assets that brands can use in their digital campaigns. Creators not only get compensated but also receive royalties each time their unique asset is used in a campaign. It’s a groundbreaking opportunity for creators to monetize their talent and creativity while providing brands with innovative and engaging content for their campaigns.

So, join the revolution and embrace the future of transparency. Spreadd, where smart contracts dance, milestones shine, dynamic NFTs captivate, and payments flow seamlessly, making dreams a reality for creators and brands alike. Let the harmonious rhythm of our platform guide your transactions, ensuring fair compensation and unwavering satisfaction every step of the way.