Digital currencies or cryptocurrencies have ushered an age where users can control the companies that keep records of their transactions and other details. In this regard, marketers often question how cryptocurrencies can influence digital marketing solutions in the near future. As cryptocurrencies are decentralized, they have made it impossible for people to double spend. Now before we try to understand the link that exists between cryptocurrencies and digital marketing, it is crucial to understand the factors and technology that led to their inception.
Blockchain technology is the foundation on which peer-to-peer digital transactions are based. It powers the source of cryptocurrencies. Without blockchain technology, it would be impossible to carry out a negotiation among the parties participating in the transaction. Blockchain technology can have both positive as well as a negative impact on the digital marketing industry. It means that while marketers need to stay abreast of the developments taking place in the blockchain industry to take advantage of cryptocurrencies, they also need to stay prepared for the disruption that it might cause to the market.
What is Bitcoin?
You must have heard of Bitcoin if you stay up to date on crypto news. It is the first cryptocurrency and a new form of money, which provides users with an innovative payment method. Launched in 2009, it now serves as the medium for customers for the digital transfer of their funds from peer-to-peer at a minimal fee. The decentralized nature of the platform makes it fast, secure, and cost-effective. Most importantly, it shields the users from identity theft.
We have now developed a fair understanding of blockchain and cryptocurrencies. So let’s dive into how cryptocurrencies can influence digital marketing by exploring all the facets.
Also read: 7 web development tools every blockchain developer should know to grow their stack
Accessing consumer data will become more challenging.
Cryptocurrencies have already made challenging the extraction of information from consumers by digital marketers. Megacorporations like Facebook and Google are no exceptions here. It will become much more tedious for sites to collect and sell consumer details to advertising companies.
The cases of media monitoring have hit staggering high numbers in the last few years. The result has been the arrival of organizations to digital breadcrumbs. It includes how the reaction of users to a specific product, their requirements, their purchases, and dissemination of information to other people on social media platforms. These were all part of online advertising campaigns, but cryptocurrencies have transformed the entire picture. Cryptocurrencies use cryptography to ensure data anonymity and enhance privacy. Cryptocurrencies are moving steadily toward strengthening the security of the platform, which will create hurdles for companies in their efforts for better internet marketing.
Empowering customers through cryptography.
As cryptocurrencies begin to be used more extensively, it will force digital marketers to pay the consumers to provide them with the information that they seek. As stated previously, any transaction taking place on the blockchain technology will be visible to everyone. However, there would be anonymity about end-to-end users. This way, the advertisers won’t be able to find the users’ data. This has shifted the power back into the hands of the users. Moreover, it will force the markets to go the extra mile and pay the users for the personal information that they provide. Consequently, it will immunize crypto users against marketing advertisements.
Eliminating the intermediary or the middle-man.
The elimination of the middle-man or the intermediary from the processes is one of the most crucial impacts of cryptocurrencies on digital marketing. The term ‘intermediary’ refers to banks, data companies, search engines like Google, social media platforms like Facebook, and insurance companies. Currently, third-parties are usually present in all our transactions. This results in large sums of money being paid as transaction fees. The elimination of the middle-man, however, will lead to the saving of a large amount of money.
Cryptocurrencies have penetrated almost every sector today and are rapidly transforming them too. It won’t be long before they enter the marketing sector, and when they do, there wouldn’t be a dearth of ways how cryptocurrencies can influence digital marketing. What remains to be seen is when that happens. The eventuality of that fate is already decided. All that we want to know about is when. Surely keeping a watch out there will.