as intermediaries, and most notably payment services, in
sharing economy ecosystems (Hawlitschel et al. 2018). The
government can use blockchain technology in any sharing
information activity, transaction or information exchange in
which the government is involved, including payment and
other services for citizens (Ølnes et al. 2017).
7 Application of Blockchain Technology
in Marketing
The potential application of blockchain technologies is wide,
spanning numerous industries and business disciplines.
However, the full potential of these technologies in business
disciplines other than finance and area of digital currencies is
yet to be seen. Marketing practices increasingly shift toward
digital marketing, and respectively sharing economy applications, and related exchange and payment systems.
Blockchain technology is expected to be one of the disruptive innovations that will influence marketing practices in the
years to come (Fanning and Centers 2016).
So far, not many studies have explored the potential
application of blockchain technology in marketing. Harvey
et al. (2018) argued that blockchain technologies could
potentially be a significant disruption factor in digital marketing, providing the higher level of control and privacy,
ending marketing fraud and spam, enabling more secured
transactions in digital businesses and more precise targeting
in advertising campaigns. The highest impact of blockchain
technologies in marketing practices is expected in online
advertising, with the potential to completely change the
paradigm of online advertising by microtargeting, remonetizing media consumption, and elimination of intermediaries
such as Facebook and Google in online advertising campaigns (Nasdaq 2016; Fanning and Centers 2016; Kecskés
2018).
Kumar and Pathkak (2018) conducted a comprehensive
overview of the current and potential applications of
blockchain technology in marketing. They also found the
area of online advertising as one of the potentially most
promising areas when it comes to the application of blockchain technologies in marketing. They argued that blockchain could enable consumers to preserve control over their
data and be able to choose if and how they want to interact
with the specific advertiser. Moreover, companies can get
better leads by ensuring that they are showing only relevant
ads to consumers and by eliminating intermediaries.
Currently, in digital advertising, advertisers are paying to
intermediaries when consumers click on add or view it; the
advertisements are shown according to consumer behavioral
and demographic segmentation recorded and provided by
intermediaries. This approach raises numerous privacy
issues related to utilization of the consumer data to create
targeted campaigns in online marketing without their explicit
permission. The use of blockchain technology can enable
users to avoid unwanted advertisements across digital platforms and preserve their privacy, while in the same time it
can permit companies to do narrow targeting, ensuring that
ads are shown only to the target group with the high level of
interest for their product or service.
Additionally, application of blockchain is found to have
potential to completely change the paradigm of online
advertising by introducing direct payment to consumers for
viewing advertisements using blockchain technologies
(Nasdaq 2018; Harvey et al. 2018). Although their data is
collected and traded, users do not receive any compensation
for this. By creating platforms where users will own their
data, the entire model of digital advertising can change in a
way that instead of platform owners such as Google and the
Facebook, user can receive micropayments for watching
provided advertising content.
Although the current body of research indicates that
blockchain technologies can have a future application in
online advertising having in mind that none of these solutions have been tested so far, more research is needed to
support the current expectations from the blockchain technology. Parsinen et al. (2018) argued that although blockchain has potential in addressing some of the critical issues
in online advertising such as privacy and narrow targeting, it
is not currently ready to be applied in online advertising and
it should be carefully tested before wider implementation in
the advertising marketplace.
8 Conclusions and Recommendations
Blockchain is still a nascent technology. It just celebrated its
ten-year anniversary, since the creation of Bitcoin. Despite
its promises and the hype surrounding the Blockchain
technology, not many applications have been yet realized.
There is no a generally accepted definition of Blockchain
technology (Seebacher and Schϋritz 2017). Nevertheless, the
Blockchain technology market is rapidly developing and
expanding at exponential rates, as Venture Capital and other
type of investment (i.e. ICO) activity indicate. At the same
time, Blockchain applications are respectively developing
and growing. However, there are not many widely adopted
Blockchain technology innovations. Nevertheless, some
important applications have been already identified. Financial and marketing are among the most significant applications, especially in the context of UAE.
Blockchain constitutes a foundational emerging technology for the Fourth Industrial Revolution and it has the
potential to drive and support sustainable environment and
resilient growth (Hawlitschel et al. 2018). UAE has established strategies for Innovation, the Fourth Industrial
Blockchain Technology, Sustainability and Business …
91
sharing economy ecosystems (Hawlitschel et al. 2018). The
government can use blockchain technology in any sharing
information activity, transaction or information exchange in
which the government is involved, including payment and
other services for citizens (Ølnes et al. 2017).
7 Application of Blockchain Technology
in Marketing
The potential application of blockchain technologies is wide,
spanning numerous industries and business disciplines.
However, the full potential of these technologies in business
disciplines other than finance and area of digital currencies is
yet to be seen. Marketing practices increasingly shift toward
digital marketing, and respectively sharing economy applications, and related exchange and payment systems.
Blockchain technology is expected to be one of the disruptive innovations that will influence marketing practices in the
years to come (Fanning and Centers 2016).
So far, not many studies have explored the potential
application of blockchain technology in marketing. Harvey
et al. (2018) argued that blockchain technologies could
potentially be a significant disruption factor in digital marketing, providing the higher level of control and privacy,
ending marketing fraud and spam, enabling more secured
transactions in digital businesses and more precise targeting
in advertising campaigns. The highest impact of blockchain
technologies in marketing practices is expected in online
advertising, with the potential to completely change the
paradigm of online advertising by microtargeting, remonetizing media consumption, and elimination of intermediaries
such as Facebook and Google in online advertising campaigns (Nasdaq 2016; Fanning and Centers 2016; Kecskés
2018).
Kumar and Pathkak (2018) conducted a comprehensive
overview of the current and potential applications of
blockchain technology in marketing. They also found the
area of online advertising as one of the potentially most
promising areas when it comes to the application of blockchain technologies in marketing. They argued that blockchain could enable consumers to preserve control over their
data and be able to choose if and how they want to interact
with the specific advertiser. Moreover, companies can get
better leads by ensuring that they are showing only relevant
ads to consumers and by eliminating intermediaries.
Currently, in digital advertising, advertisers are paying to
intermediaries when consumers click on add or view it; the
advertisements are shown according to consumer behavioral
and demographic segmentation recorded and provided by
intermediaries. This approach raises numerous privacy
issues related to utilization of the consumer data to create
targeted campaigns in online marketing without their explicit
permission. The use of blockchain technology can enable
users to avoid unwanted advertisements across digital platforms and preserve their privacy, while in the same time it
can permit companies to do narrow targeting, ensuring that
ads are shown only to the target group with the high level of
interest for their product or service.
Additionally, application of blockchain is found to have
potential to completely change the paradigm of online
advertising by introducing direct payment to consumers for
viewing advertisements using blockchain technologies
(Nasdaq 2018; Harvey et al. 2018). Although their data is
collected and traded, users do not receive any compensation
for this. By creating platforms where users will own their
data, the entire model of digital advertising can change in a
way that instead of platform owners such as Google and the
Facebook, user can receive micropayments for watching
provided advertising content.
Although the current body of research indicates that
blockchain technologies can have a future application in
online advertising having in mind that none of these solutions have been tested so far, more research is needed to
support the current expectations from the blockchain technology. Parsinen et al. (2018) argued that although blockchain has potential in addressing some of the critical issues
in online advertising such as privacy and narrow targeting, it
is not currently ready to be applied in online advertising and
it should be carefully tested before wider implementation in
the advertising marketplace.
8 Conclusions and Recommendations
Blockchain is still a nascent technology. It just celebrated its
ten-year anniversary, since the creation of Bitcoin. Despite
its promises and the hype surrounding the Blockchain
technology, not many applications have been yet realized.
There is no a generally accepted definition of Blockchain
technology (Seebacher and Schϋritz 2017). Nevertheless, the
Blockchain technology market is rapidly developing and
expanding at exponential rates, as Venture Capital and other
type of investment (i.e. ICO) activity indicate. At the same
time, Blockchain applications are respectively developing
and growing. However, there are not many widely adopted
Blockchain technology innovations. Nevertheless, some
important applications have been already identified. Financial and marketing are among the most significant applications, especially in the context of UAE.
Blockchain constitutes a foundational emerging technology for the Fourth Industrial Revolution and it has the
potential to drive and support sustainable environment and
resilient growth (Hawlitschel et al. 2018). UAE has established strategies for Innovation, the Fourth Industrial
Blockchain Technology, Sustainability and Business …
91