3 Positive Impacts of Cryptocurrency on Digital Marketing
Blockchain technology and its most famous usage – cryptocurrency has both positive and negative impacts on different sectors of the economy including Digital Marketing. While most say that its greatest impact is felt in the financial sector but that does not mean it has any lesser impact on other areas.
To begin with, let us walk through the meaning of Cryptocurrency –
A cryptocurrency (or cryptocurrency) is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a digital ledger or computerized database using strong cryptography to secure transaction record entries, to control the creation of additional digital coin records, and to verify the transfer of coin ownership.
Wikipedia
Let us now focus on 3 positive impacts of Cryptocurrency on Digital Marketing as researched by our team at Magenta Logics –
1. It opens up an International Market –
Blockchain with the usage of cryptocurrency can help open International Markets for Digital Marketers if they successfully incorporate and promote crypto use to buy products and services using an online bitcoin wallet.
Cryptocurrency gives marketers an opportunity to execute crypto payments across borders with no additional fees or exchange rates. Not only does this motivate more people to buy from overseas companies but it also ensures secure online transactions. Marketers can use this to their advantage by encouraging the usage of Cryptocurrency and helping people invest in the secured mode of online transactions.
The elimination of intermediaries, transaction fees, and taxes when using cryptocurrency for international trade removes all the obstacles created by such intermediaries. Thus, the ability to move seamlessly between countries and currencies throws light on the huge potential of cryptocurrencies in international trade, and marketers can use this for their benefit.
From SME’s to large corporations, all of them can expand their business overseas without having to navigate through the obstacles associated with the traditional financial systems and together with the help of digital marketing, even small companies who sell handmade products from their website to consumers on the other side of the planet can do it seamlessly with much more ease and security.
This is an incredibly powerful combination and with the use of cryptocurrency, the overarching consideration of digital communications and marketing can have unlimited potential and options.
2. It increases brand transparency and trust –
Cryptocurrencies like Bitcoin are open-sourced and decentralized. This makes the companies that embrace Blockchain technology more trustworthy and reliable. Being open-source, cryptocurrencies are verified by several people before being recorded on the public ledger. Even companies that use Blockchain-based solutions to issues like handling the supply chain have a better chance to be seen as transparent and accountable.
For example, if a company is using the Blockchain technology to monitor the delivery of a purchase that allows both parties to track the journey of the parcel, it without doubt improves the trust of the consumer in the business and the assurance of the item purchased to be delivered as promised.
Marketers need to zone in on such companies who use this technology and accept cryptocurrencies to increase brand transparency and trust as well as allow it to positively impact digital marketing.
They can use this type of transparency to promote brands effectively and highlight the said features of the brands or the companies they are handling.
Moreover, as more and more people are becoming data-conscious and concerned about the way their data is being handled and stored, using Blockchains provides companies a secure way of storing the data that is shared with them and in turn, makes their customers and clients more accepting of such companies and confident about their data security and safety.
Digital Marketers who work with such companies can use these positive attributes in their favor and market such companies by highlighting these features and advertising about how consumer data security is effectively handled by these companies. It can build the immense trust of current as well as future customers and also help promote such companies in a more specific and defined manner.
3. Marketing departments can handle and store data more effectively –
Big Data can analyse the bitcoin blockchain to discover trends and help predict the future value of bitcoin as well as help understand price fluctuations. Alongwith doing this, another benefit is that large amounts of data can be stored on blockchains to keep records unaltered and ensuring that it remains safe. It can not only prevent data from getting lost but also helps to improve the accuracy of big data analysis between large teams.
This can be the case for marketing departments as well. By keeping data within an internal blockchain, marketing teams of companies can analyse consumer trends from a data set and work more effectively. It eliminates the need for numerous versions of the same data set and increases the overall output and accuracy of the final result.
Moreover, a blockchain being a digital ledger that cannot be altered retroactively without the alteration of all subsequent blocks prevents the loss of data for marketing teams and companies. Teams handling and working with multiple data sets can do it with more ease.
What all of this means for the future –
Cryptocurrency is here to stay and the best new companies that get created in the crypto space in the 2020’s will be about people using crypto for purposes other than trading. Moreover, in a world driven by privacy considerations, the tamper-proof and decentralized features that blockchain and exchange of cryptocurrencies offer have become increasingly popular beyond its original function supporting bitcoin digital transactions.
To expedite processes and cut costs without compromising on security is what every company wants to achieve and which is why its impact on digital marketing will be profound where instead of focusing and spending money on numerous factors of marketing, companies will now focus on specific areas like data security, customer data acquisition, and data storage. Marketers will now require lesser amounts of funds to successfully advertise and market their companies as they will limit themselves to only specific sectors of marketing instead of spending funds on a variety of different aspects of marketing. Moreover, they will be able to strategize and create digital marketing plans according to the growing needs of the company that is centered primarily on customer trust, loyalty and data storage, and security.
Also, given how cryptocurrency will make it harder to gather consumer information and eliminate the need for middlemen like Facebook and Twitter for online advertisements and marketing campaigns, a large chunk of advertising expenses will automatically get cut off and marketers will use this money to source customer information through the use of decentralized apps and smart contracts. The information they will receive in this manner will be more vital and customers will, therefore, become more responsive to ads.
Moreover, the advantage will be that the self-executing contracts will not be in the control of anybody and the information received will be more reliable and relevant.
What are your thoughts about the impacts of cryptocurrency on digital marketing? Share in the comments below.
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