Cryptocurrencies have started to impact various sectors of the world economy in a slow yet gradual manner. While their effects are going to be across the industry, experts are unanimous in their opinion that the financial sector will have their greatest impact. After all, Bitcoin is already a rage and it has taken the financial sector by storm. Naturally, over time, crypto currencies will have presence in sectors as varied as medicine, sports, gaming etc.
The good thing about cryptocurrencies are, they are giving more freedom and control to customers over companies and reducing the practice of storage or recording of transactions and other critical information. Clearly, being digital currency, they are going to affect digital marketing in a big way. After all, their production uses encryption technique with no interference from the higher authority.
Naturally, with digital currency growing in prominence, marketers have no choice but to show more relevance. Plus, the decentralized features of digital currencies mean, they can’t be double spent ever. It’s therefore sure that the impact will be both positive and negative on digital marketing.
Let’s look at how cryptocurrencies can affect digital marketing in 4 different ways –
1. Consumer data will be hard to access
The arrival of cryptocurrency has rightly tilted the balance in favour of consumers. Marketers are finding it a lot harder to access consumers’ data which is affecting digital marketing. It will not be easy in coming years to collect user information which top companies so easily sell to advertising firms in the lure of money. Obviously, media monitoring is going to increase in intensity in future.
Since cryptocurrency uses obfuscation protocols, it has made life tough for digital marketers as users’ metadata is now private and anonymous. More importantly, the use of various encryption methods with digital currency means third parties won’t find it easy to access personal data of users. With privacy-driven digital currency set to rule the world sooner rather than later, accessing user data will not be easy for marketers for sure.
2. Consumers will get more empowered
In coming years, there will a huge reversal of trend in the digital marketing industry – the ever-growing use of cryptocurrency will force marketers to pay to consumer for their data. The more people start using digital currency, the harder it will become for companies to get their data. In fact, there will be absolutely no personal data on the blockchain since encryption will be there all around.
So, obviously, consumers are going to reign and get paid for their personal information from marketers. The days are not far when we will have digital currency-powered social platforms, which will even further lessen the available data or information on the blockchain. This clearly shows consumers are going to get more empowered due to using cryptocurrency for their transactions.
3. The middlemen are going to be redundant
Cryptocurrencies are going to cut the need of middlemen and impact digital marketing in a huge way. With the scale of digital currency transactions set to increase, this will largely leave parties like banks, insurance firms and data companies useless for marketing. Ad companies and marketers will not need to share revenue with third parties anymore and this can have a positive outcome to advertising campaigns.
Thanks to digital currency, marketers can now source for consumer data directly at a prescribed fee without the need to share the money and information with any third party in the chain. So, all the participants in the digital marketing will decentralized components with no one in a position to make merry at the cost of the other. Naturally, users will feel encouraged to give out reliable data and marketers can thus use the same for better results with ad campaigns.
4. More transparency and accountability by marketers
The use of cryptocurrencies will give marketers a chance to build consumer trust for their brands. Since these currencies are open-source and decentralized, there will be several people in the loop verifying all the transactions on the blockchain before putting in on the public ledger. Naturally, consumers will easily know which companies are more transparent and accountable based on their use of blockchain technology.
Plus, brands that use digital currency will stand out in the market and seen as a pioneer in the industry. There will be an increased level of trust in companies that use or support technological innovation and thus, they will find it easy to sell ads or policies to consumers. This is how a true revolution will take place in the digital marketing sphere after the embrace of cryptocurrency.
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