Is there a link between digital marketing and cryptocurrency?
Cryptocurrencies have entered the mainstream over the last few years and have become quite popular among individuals and institutional investors. They gained so much acclaim that they have shaken the way organisations run their operations, develop investment strategies, approach the market, and create digital marketing campaigns. Despite several bear markets, digital currencies proved they won’t go anywhere (just check Bitcoin’s price, and you’ll notice that its value is still high despite the crypto winter), so it’s time for business managers, marketers, and advertisers to adjust their strategies to keep up.
Companies that deal with digital currencies need specialised marketing plans to enable thrust ahead of their competitors because only some are familiar with this payment method.
What should you know about digital currencies?
By now, everyone has heard the words cryptocurrencies and digital currencies at least once, but not many have researched to gain further understanding about what they are and how they work. The crypto market is a new niche and often intimidates people. But if you gain a little knowledge about the market, it won’t seem as crazy or complicated as it looks.
Investopedia defines cryptocurrencies as virtual or digital currencies secured with the help of cryptography, which prevents counterfeiting. The most popular digital currencies are decentralised networks built on blockchain technology – a distributed ledger that functions with the help of a disparate network of computers. Digital currencies are unique in the financial sector because no central authority issues or controls them, so they’re immune to manipulation or government interference.
But wait, what is blockchain?
We mentioned earlier that cryptocurrencies are based on blockchain, so it’s best to discuss the notion a little. Blockchain is a distributed database shared among several nodes of a computer network. It stores data in a digital format and is paramount in cryptocurrency projects like Bitcoin because it maintains a decentralised and secure record of all transactions. Blockchain is innovative technology because it guarantees the security and reliability of a record of information and generates trust without the involvement of a third party.
And do cryptocurrencies and blockchain impact digital marketing in any way?
The above information helped you get familiar with digital currencies and how they work, so now it’s time to understand how they impact digital marketing. Specialists believe they could reduce the number of parties involved in marketing campaigns. At present, the average digital advertising campaign includes four parties: the targeted customer, the marketer, the content creator, and the platform hosting the content. If advertisers switch to platform hosting, they no longer have to deal with the platform hosting the content. They upload the marketing materials to a blockchain, making them visible to network users. Therefore, digital blockchain marketing would involve only three parties, the public, the marketer, and the blockchain that facilitates the content transaction between the advertiser and the consumer.
What are the main benefits of blockchain digital marketing?
Why should advertisers consider turning to crypto-driven digital marketing and removing the intermediary? Here is a list of benefits they would get if they added digital currencies into their advertising efforts.
– Advertisers would find it easier to engage their target audience
– Users would benefit from increased anonymity
– Users could get ad tokens when they choose to share personal information
– Advertisers pay lower advertising rates
– Increased conversion rates
– Quicker transactions between the customers and marketer
– Ads are easier to locate
Does digital blockchain marketing come with any drawbacks?
Marketers could deal with some issues when opting for digital blockchain marketing.
– It’s challenging to collect information about users, transactions and activity. However, if they use ad tokens as rewards for those who provide their personal information, they can solve the issue. Microsoft states that ad tokens are security tokens that provide information about the people who engage with the ads. Companies can use the data to access web APIs and other similar resources.
– Marketers can use a single blockchain to share their content. This shouldn’t be a drawback as long as the marketer identifies the blockchain most popular with the target audience. The creative team can deliver some special content to lure people into engaging with the campaign and even joining the blockchain.
How should marketers deal with the rise of digital currencies in the sector?
The biggest challenge for marketers that welcome digital currencies and blockchain in their marketing campaigns is the limited access to information. Blockchain guarantees user privacy and anonymity, so advertisers have to learn to work and pivot with this. Most marketers rely on data and numbers to make creative decisions, so when they lack these resources, they have to find innovative ways to market a brand.
Here is what blockchain could bring to the marketing world.
Focus on creativity. Marketers must understand what their target audience wants and give them exactly what they expect, engagingly and compellingly. Digital currency users are usually up to date with the latest trends, and therefore the marketing should hit its mark and be relevant.
Blockchain could bring a competitive edge. Online advertisement will become more challenging when blockchain enters the stage, especially during the initial stages when everyone is trying to figure out what strategies work best. This means that marketers should watch out for every way to gain a competitive edge and use blockchain features to stay ahead of their competitors.
Advertisers have to recalculate their budgets. Blockchain allows marketers to save money on marketing campaigns because they no longer have to buy customer data. They can use these resources to invest more in creativity.
Spotlight on social media platforms. These days, social media drives a high portion of sales. Social media platforms make it easy to purchase products; the clients only have to tap on the products they want. Digital currencies make the process feel even more straightforward because they allow brands to engage with customers worldwide. Therefore, advertisers must find ways to add social media to their digital blockchain marketing strategies.