With crypto and blockchain penetrating various niches from algorithmic trading to healthcare and proving their utility, digital marketing is making its presence felt in crypto marketing. With 9 percent of the companies showcasing a commitment to accepting cryptocurrencies in consumer transactions over the years, more companies are expected to follow suit. Hence, it is important to understand the role of digital marketing in crypto.
Present-day digital marketing
A shotgun method is currently used in digital marketing to reach massive audiences. The future of crypto is promotions, advertisements, and sponsored events in places with large audiences and high conversion rates, like 2% of the audience reached by ads.
It also decides that members of the public are likely to purchase goods and services using data collected on them by private companies. The private companies either use the data for their own marketing campaigns or sell the information to other companies that want to target specific demographics.
The public has no control over how and in what manner it is exposed to advertisement content. Even the public is not compensated for the time it spends on advertisements. Lastly, it is really difficult for advertisers to find out which ads are effective and how the members of the audience are responding to them.
Crypto’s effect on digital marketing
Digital market experts often flare up the question, “Is cryptocurrency the future?” Cryptocurrency is expected to reduce the number of parties in advertising campaigns. A modern digital advertisement includes four parties: the advertiser, the consumer (you), the platform hosting the advertisement (Facebook, Google), and the content creator that hosts the advertisement.
With blockchain in marketing, advertisers can eliminate the platform that hosts these advertisements. Rather than paying for them, the advertisers will upload the advertisements onto the blockchain, where they will be made available to the platform’s users. In short, the future of crypto limits the interacting parties to three groups: advertisers, consumers, and the blockchain that supports the transactions between the advertiser and the consumer.
Since cryptocurrency and blockchain technology have become persuasive, digital marketers need to incorporate them into their marketing strategies and campaigns in the form of loyalty programmes and rewards. They must understand the advantages and disadvantages of crypto-driven advertising, as well as how to work around its data-collecting constraints, in order to do this.
Social media has an important role to play in driving traffic to the advertiser’s content. Advertisers are likely to use online platforms like Twitter, Discord, Reddit, and Facebook which are likely to generate interest. This is expected to fuel interest via word of mouth, and this form of advertisement is expected to be the future of crypto. It is the discussion, promotion, and sharing of links that are discussed in these forums that are going to replace the short-gun advertisements prevalent today.
On the blockchain, platform users will be able to decide which advertisements they want to view online. If they are engaging with the advertiser’s content, the future of crypto is in the form of tokens. For providing their personal data to advertising, they will receive payment in cryptocurrency tokens. In short, the public pays for this information, which is then sold to various advertisers. Blockchain may require users to pay for the privilege of accessing exclusive forms of advertising content.
Blockchain has an impact on every facet of the business that includes marketing departments. It may be utilized to undertake crucial marketing activities such as brand recognition or fraud prevention. The desire of a consumer for data safety and transparency is compiled by the blockchain. All these variables have a major impact on digital marketing with the most notable being the access of users to consumer data.
Marketers are the first step in the process. A basic attention token will be available for purchase by the advertiser. BAT users have the option of choosing whatever they want to see, as this would be reimbursed with BAT in exchange for their attention. This benefits the advertiser, as they are expected to gain some form of feedback on whether the general public likes the advertised products or not.
The users would also want to obtain more information about the brand and the items they are interested in by selecting the ads they want to see. Hence, the consumers would be rewarded with a percentage of the BAT used by the advertisers to purchase ad space. The publisher happens to be the final party involved.
As the publisher is compensated by the user and the advertiser, it would receive a major chunk of the compensation. The publishers have expected to receive a higher portion of the ad spend than the consumers in this scheme. By charging the BAT users in exchange for premium content or subscriptions they integrate premium services.
The Benefits and Drawbacks of Crypto-Powered Digital Marketing
There are several benefits and drawbacks to using digital marketing for crypto. The following are a few of the obvious ones that must be effectively discussed before advertisers can implement them.
- It would be easy to locate ads for goods or services of interest using phrases or keywords when the ads are on the blockchain.
- Customers receive ad tokens for engaging with the ads and sharing their personal information with the advertisers.
- The customers who engage with these ads on the blockchain will have a higher conversion rate in comparison to people who are forced to view the ads.
- Between the consumer and the advertiser, more direct communication and faster transactions are possible.
- Advertisers are expected to have lower advertisement costs as there are fewer parties involved in the advertisement campaigns. Though blockchains must be paid for in order to make these ads available to platform users, the fees charged are much lower than those charged by private companies such as Google.
- There will be no more phoney actors, experts, fans, or other deception mechanisms used to persuade the public to buy the promoted goods or services.
- Advertisers are likely to choose blockchains that will host their advertisements based on the reputation of the blockchain.
- It is difficult for advertisers to collect large amounts of data about the general public and consumers. This leads to a degree of doubt in the mind of consumers about digital marketing and its impact on the future of crypto.
- Because they do not know how to pique their interest or attention, companies will find it challenging to target particular audiences on the blockchain.
- If advertisers want platform users to select their digital ads, they have to be more relevant, engaging, compelling, and attractive to them.
The future of cryptocurrency is complex
Many marketing experts believe that Bitcoin may be collected in the same manner that stocks are in the hope that value will enhance over time. But the potential risk with stocks is that things can go wrong. Though the future of Bitcoin is bright, the apparent risks make it difficult to entail.
This raises the issue of digital inequality as well. People who lack financial literacy and access to digital platforms will not be able to undertake these transactions leading to socioeconomic inequalities. There are no second thoughts about the fact that the future of cryptocurrency is bright.
The potential solutions for advertisers
The drawbacks that are faced by advertisers in the crypto-driven market space have been encountered by advertisers at every stage of the e-commerce evolution. An example is that the introduction of online commerce confused advertisers until they understood how to collect data from consumers.
Advertisers and social media platforms learnt how to compile passive data warehouses full of information about social media users at the same time that social media platforms became a social phenomenon. The advertisers find the answer to the question, “Is digital marketing the future of crypto?” They have made certain interesting observations, and some actions that an advertiser is forced to take are as follows:
- Using ad tokens that are specific to the preferred advertisement platforms
- requiring the platform users to register for specific crypto platforms in order to store their ad tokens.
- Opting for platform-specific promotions, content, or events to encourage consumers to use specific blockchains
- requiring the platform users to complete the “know your customer” (KYC) procedures if they want to use a platform or be rewarded with tokens on it. KYC registration enables third parties or platforms operating on the platform to collect information on the platform’s users via their token earnings and platform activities.
To sum up, crypto-centric marketing strategies pose enormous challenges and opportunities for advertisers. When consumers used third-party payment processors, the same benefits and drawbacks were available along with online commerce, and coupons. In each of the cases, an advertiser was able to optimize the collection of consumer data and reach out to their targeted audiences. Still, the future of crypto is digital marketing, as it provides blockchain users with more privacy and protection than the current marketing strategies.
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