- April 29, 2020
- Posted by: icoblock
- Category: Uncategorized
KFC announced its status as the first quick-service restaurant (QSR) in the MENA region to implement an innovative blockchain platform for its digital advertising and media buying. Ads, the backbone of any direct to consumer business, will have greater transparency through the new blockchain-based framework that KFC will implement.
KFC’s Foray Into Blockchain-Enabled Ad Buying
The digital advertising industry is fraught with conflict of interest. Companies can “fake” impressions and clicks through various methods such as robots and click farms. Consumer brands may end up paying for users or conversions that are not real or authentic because of the lack of transparency inherent in the ad buying space.
KFC believes that introducing a blockchain layer will help bring further transparency to the ad buying process and increase the brand’s visibility and penetration. The fact that blockchain is a real-time “living” database will enable faster feedback loops in the distribution of more timely and relevant messaging. The company also expects to reduce overall ad expenditure in certain areas as it concludes more quickly that some channels are not producing optimum ROI. This will maximize ad placements and optimize advertising revenue.
Ozge Zoralioglu, Chief Marketing Officer, KFC, Yum! Brands commented:
“Historically, marketers have collected data from various different sources and run a campaign pegged on these mismatched insights. Today, marketers must get to the original source of the data: the consumer. Blockchain technologies ensure that they get first-hand information from the target audience themselves.
By innovating with a sophisticated blockchain solution, KFC can now benefit from enhanced visibility of real-time data and the most updated insights – all with full confidence that information is authenticated, tamper-proof and hence credible. Leveraging blockchain technology’s immutability means that together, we are able to improve trust, transparency and efficiency in our supply chain.”
Quick Service Restaurants Dabbling in Crypto
CryptoPotato reported in January 2019 that KFC in Canada had launched a marketing campaign in which it launched a special edition item – the bitcoin bucket. For a limited time, you could pay for food using Bitcoin.
January 2020 also saw an increase in crypto adoption with Burger King Venezuela announcing a partnership with CryptoBuyer the option to use cryptocurrencies to purchase food at locations in Caracas.
It remains to be seen whether restaurants such as KFC will take a deeper dive into the cryptocurrency landscape by introducing their own tokens in the future. One thing is for sure – leveraging blockchain for advertising transparency may have synergies with bootstrapping ad audiences into a network of repeat customers through programs such as loyalty points. It remains to be seen whether KFC will expand accordingly into other blockchain verticals.