How Cryptocurrencies Affect Digital Marketing
Digital marketing is the way of promoting and selling products and services utilizing online marketing tactics that have been going on and improving for an extended time. The tactics of digital marketing consist of email newsletters, search engine optimization, and social media to boost brand recognition, increase lead conversions, and sales.
The dawn of all cryptocurrencies is Bitcoin. Ever since Bitcoin started, it has affected a lot of industries such as finances, healthcare, and investments. One sector that people cryptocurrencies are changing is digital marketing. The e-commerce industry is currently growing due to the increase in buying and selling goods of consumers on the internet.
A brief effect of cryptocurrencies in the e-commerce industry is removing the credibility of both the buyer and seller in e-commerce platforms. A lot of things can happen to the e-commerce industry than could change how businesses utilize digital marketing strategies. Read on to know more about how cryptocurrencies affect digital marketing.
The Difficulty of Accessing Consumer Data
Cryptocurrencies are already affecting digital marketing by making it difficult for marketing experts and webmasters to access consumers’ data. Social media platforms capable of e-commerce such as Facebook that usually collects user information to know the interests and demands of consumers will be challenging.
Google also collects user information from digital footprints based on the searches of every consumer in the search engine. The collected user information about the interests and searches of consumers is sold to advertising companies and digital marketing services to optimize their business strategies.
It’s going to be difficult for Google to collect user information because of the direct operations of cryptocurrencies. Given that digital marketing is only possible with the help of third parties in the e-commerce industry, such as eBay. Advertisers and marketers won’t be able to target a specific audience without these third-party platforms.
User Information and Third-Party Platform Transactions
You have to keep in mind the four primary elements in the digital marketing industry. They are the user, published content from content creators, companies advertising and promoting their goods, and platforms such as Facebook, Youtube, and more.
For instance, Youtube has a lot of content creators, each with thousands to millions of subscribers. Before subscribers watch the published video content of the content creator, a short clip specifically an ad will appear to target the subscriber in the market of the content creator. The market can either be cosmetics, technology, games, and many more.
Blockchain
If blockchain technology will be utilized in third-party platforms involving the application of cryptocurrency to purchase and sell products. Blockchain technology in cryptocurrencies is like an open record system that tracks different transactions of users. Blockchain can also be used to track data such as home record, medical transactions, and voting records.
The most crucial feature that becomes a disadvantage for marketers and advertisers is that every user transaction using cryptocurrency will be segmented into blocks. After segmenting the blocks, the users will then verify these blocks within the blockchain system.
The blocks and transactions will be irreversible once the users verify them in the system, and the blocks will become permanent blocks that will be added to the existing blockchain. The blockchain, however, is visible to everyone, but the anonymity of the users will be protected.
Voiding the Middlemen
The middleman of consumers buying and selling goods are e-commerce platforms such as eBay, BigCommerce, Shopify, and many more will be deemed useless due to blockchain. Since the consumers will be able to buy and sell directly to each other using cryptocurrencies.
E-commerce platforms are marketplaces, where consumers can buy and sell products online. They earn profit through charging fees through verifying transactions with the buyer and seller’s bank. The purpose of being the middleman between a buyer and seller is to confirm whether they are genuine and that they exist.
The Challenge for Digital Marketing
Advertisers and marketers will no longer be able to reach their target audiences your ads on social media platforms and websites. However, businesses and companies will be able to gain more profit due to the voiding of the middleman.
The only way businesses and companies to have access to the information of their customers is if their customers charge them to subscribe to their newsletters. Customers can charge a cent for every mail they read from the businesses and companies that sent the newsletter.
Takeaway
The effect of cryptocurrencies gave consumers a higher level of control of their information and the goods and services they’re interested in. Marketers will have a hard time implementing digital marketing strategies. It’ll be challenging to showcase their relevance to the interests of the consumers since there’s no basis for information.
Originally published at Entrepreneur News and Startup Guide.
