Cryptocurrencies and Their Impact on Digital Marketing
Although they haven’t quite become the world-changing bank-killers people predicted they would be, there is no denying that cryptocurrencies have shown great potential and incredible staying power. So much so that, as indy they may look, they have become a force to be reckoned with in the global economy.
Today, 10 years after Bitcoin started its journey, the presence of digital currencies can be felt in all business-related areas. So, what kind of influence did cryptocurrencies have on the development of digital marketing that became one of the most important marketing channels roughly in the same time frame? And, more importantly, what can we do to leverage that influence? Well, let us try to find out.
Customer data becomes harder to access
It is not that big of a secret that in the contemporary online environment every search, every login, social media like, and every transaction leaves a digital trail that can be used for analytics and digital marketing. Without this data pool, digital marketing would be impossible. However, being hidden behind the veil of cryptography that keeps the user data anonymous and private, cryptocurrencies are making this job considerably harder. Because of that, the ultimate profitability of ads on social media platforms like Facebook or Instagram as well as other online outlets slowly comes into question.
Bitcoin mining expands marketing opportunities
Still, as much as, in some cases, they present themselves as an obstacle, cryptocurrencies can be used to the advantage of digital marketers. One of the main reasons why they are so underutilized is because they are, essentially, misused. Namely, when considering the prospect of cryptocurrencies most of the companies out there see themselves at the receiving end. But, that doesn’t have to be the case. By acquiring professional bitcoin mining equipment and joining the blockchain, companies are not only creating an additional income flow that can finance future marketing efforts but also expanding the offer of available financial assets. This versatility can prove to be of tremendous value when hiring freelance marketing services, starting online referral programs, etc. More assets you have on disposal, the better.
The elimination of the middle-man
This is one of the key aspects that make cryptocurrencies so appealing to all participants in the online economy, and digital marketers are no exceptions. Why is the absence of middle-man so important for your marketing efforts? Well, it's rather simple – you are making fewer expenses and getting faster results. If you, for example, want to set up your banner on some website, you can skip all the third parties in the form of banks, insurance companies, representatives, etc. by a simple fact that blockchain users are already verified through the network. In other words, the website owners can engage in a transaction without the need for any additional checks and cause additional expenses on their end. You are paying directly and getting the service without any delays.
Opportunities for branding
As we already mentioned, the cryptocurrencies are granting their users a great deal of privacy that makes data collection practically impossible. But, if companies can’t harvest the data from their users, they can use this simple fact as a rallying cry and a focus of marketing.
Cryptocurrencies are addressing two big issues experienced by younger online users – distrust toward the existing banking system and concern for online privacy. If you offer these people the opportunity to make transactions with digital currencies, your business will immediately look more edgy, youthful, and egalitarian. This alternative aura can do wonders for your branding efforts.
More power to the customers
Finally, we have to take into consideration that, being unable to acquire the customer information through traditional channels (third-party data vendors), businesses who want to play a larger role in online marketing will have to engage in negotiations with the customers and purchase data directly from them. That puts a lot of power in the hands of the customers that have, up until recently being mostly out of touch with the entire process of data mining. But, much like in the previous case, this customer empowerment can be used for the purposes of branding. As long as you are able to sustain the costs (see more in the section about mining), you can easily outmaneuver the competition by offering your customers to pay to get to know more about them.
We hope these few considerations helped you learn more about the influence cryptocurrencies are having on contemporary digital marketing as well as proposed a couple of ideas of how you can use this situation to your advantage. There is no denying that the modern business environment is loud and dense. If cryptocurrencies are the asset that can help your business leave the competition behind, we say they are more than worth the try.