Cryptocurrencies have not only grown in popularity but also assumed greater value in recent years. Many industry experts have proclaimed that cryptocurrencies can transform the finance and marketing sectors. However, as digital currencies like Bitcoin become more commonplace, it might create issues for marketers to obtain consumer data. The impact of cryptocurrencies on digital marketing is also expected not to stay confined to one aspect. Instead, all facets of marketing like social media, email marketing, etc. might get affected. The anonymous nature of digital currency can have a significant bearing on how the future of marketing shapes up and grows.
Cryptocurrency and Social Media
Social media has impacted our life like no other medium. Although it might sound unbelievable, there are nut cases outside who believe that if it isn’t trending on social media, then it isn’t true at all. Regardless of how stupid this sounds, it demonstrates the significance of the digital world. Therefore, social media plays a critical role in boosting the surge of cryptocurrencies. Crypto holders can find all the crypto-related information they need through social channels. Some of these platforms, like Facebook, are also planning to invest in cryptocurrencies. By doing so, they can benefit from the popularity that it has been gaining.
But it is important to note that social media can also lead to market price fluctuation apart from helping to make cryptocurrencies popular. This is evident from the dip in the value of Bitcoin and Ethereum last year when Tether was hacked for over$30 million in tokens. However, one must not forget that this influence can also work inversely. If cryptocurrencies achieve mainstream acceptance, this could also lead to another wave of social media platforms being launched.
Is Cryptocurrency Disrupting the Marketing Sector?
The decentralized nature of the blockchain and cryptocurrencies have made it challenging for marketers to obtain consumer data. The absence of precise customer information makes it challenging to create digital marketing strategies and execute them. Cryptocurrencies can also bring in greater online anonymity, which many internet users have been clamouring for a long period. A report by Pew Research Center claimed that over 86 per cent of internet users have taken measures to conceal their digital footprints or clear them completely. These steps ranged from removing cookies to mail encryption. Some also avoided using their name. Others used their names to scale virtual networks that hid the internet protocol (IP) address.
The smaller volume of digital footprints would result in lessened consumer data that marketers can gather to identify their target segments. They would find it challenging to map out their key demographics. Test ads and consumer behaviour prediction would also become difficult. However, Cryptocurrencies can allow consumers to carry out transactions that would enable customers to purchase products and services in a secure and anonymous environment. Although this might seem like great news for the consumers, it can spell serious challenges for marketers. With the digital currency gaining momentum in the coming years, the impact of cryptocurrencies on digital marketing would become more pronounced and tangible.
Obtaining Consumer Data Might Become Expensive
As information ceases to reach marketers from all corners, they could be forced to approach the source for the details they need. Naturally, this would result in consumers demand to compensate them for the information that they provide. Paying consumers directly in lieu of their data can be a reasonable strategy. However, this could also be a touch expensive. This can have a significant impact on social media platforms like Instagram and Facebook. If marketers begin to pay the users directly for data, the revenue stream of social media platforms might be disrupted.
If you follow updated crypto news, you might have come across crypto-driven social channels like Steem and Earn.com. These sites have popped up to let marketers engage with hundreds and thousands of users. Through their involvement on such networks, they purchase all the details they need from consumers. These platforms can present a potential solution, but consumers might prefer a nontrivial amount of money for their data. However, on the upside, one can argue that people who provide a company with their information can also be their likely customers.
There is a lack of clarity regarding the role that cryptocurrency can play in the future of digital marketing. The influence of social media on digital currencies and the impact of cryptocurrencies on digital marketing can be flipped upside down to pave the way for new crypto-oriented social media platforms. However, this would also mean that digital marketers would have to shell out extra bucks on consumer research. Without that, the success of their advertising would hang by a thread. Consequently, it would place the power back into the hands of the consumers and give another twist to the adoption of cryptocurrencies. But in every case, the outcome will be fruitful for everyone.