Although cryptocurrency technology is fairly new, it is already causing up trouble in multiple industries. For this reason, there are some who believe that it is changing the face of finance and marketing forever.
Despite being a newbie, cryptocurrency already impacted the marketing world quite significantly. Here are some reasons you should start paying attention to cryptocurrency; as well as some explanations of this ground-breaking technology. So that you can start mastering it.
What cryptocurrency is?
First of all, you should know and understand clearly what cryptocurrency is. Here its definition:
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies use decentralized control as opposed to centralized digital currency and central banking systems. The decentralized control of each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.
Bitcoin, first released as open-source software in 2009, is generally considered the first decentralized cryptocurrency. Cryptocurrency is quite popular as in November 2016, the market capitalization of Bitcoin and other cryptocurrencies reached $13.8 billion.
Making it harder for marketers and platforms
Since cryptocurrency focuses on the conservation of user’s privacy, it will be inevitable that crypto will make it more difficult for marketers to collect the kind of data on consumers that are usually used to create advertising plans. Infect, almost 90 percent of internet users have tried to remove or decrease their digital footprint online.
Presently, it is quite easy to collect great amounts of information on potential customers in order to attract leads. This is because the platforms we usually use, like Google or social media like Facebook; own the data that people submit and they sell them back to marketers. Marketers can use this information to understand audience segments, customer behaviors and to make attractive ads for the consumers.
However, when using cryptocurrency, a lot of leads and buyer information become anonymous, safe and encrypted. This means it will be more difficult for marketers to retrieve any information related to target markets.
For these reasons, marketers need to learn new ways to collect information and create new strategies to make the consumers interested to make their data public. Otherwise, it will be almost impossible for marketers to give consumers what they want and need.
Paying consumers instead of paying platforms
One possible solution to the future problem of having less and less information available for marketers; it would be paying the users directly for their personal information, rather than paying the platforms they use.
Since the blockchain technology behind cryptocurrency means that no single entity can own or control networks, users will be in control. Cryptocurrency itself further complicates this picture, as businesses eventually will be unable to tell who bought what product or service. For these reasons, the most effective way for companies would be remunerated users to give away their information and to market directly them rather than use other platforms like Facebook and Instagram. Some platform new social media platforms already allow marketers to engage with users for the opportunity to get the purchasing and other personal information about them.
A factor that marketers should take into consideration, it is that consumer will most likely want to be paid a higher compensation for their personal information, compared to platforms. However, this is a profitable opportunity for customers to be rewarded for their cooperation. This is also a good opportunity for the marketers, because the person who will give access to their information, most likely will be interested in the brand.
Although cryptocurrency may not affect your own business marketing model, it’s a strong representation of where digital trends are heading in the next few years. Even if the changes are not accurately predictable, it is good to be prepared and explore the potential of cryptocurrency.
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