Cryptocurrency and blockchain are slowly making their way into varied business niches. Earlier, both were used in trading and finance. But today, they’ve penetrated into healthcare and are now making moves toward the digital marketing industry.
According to Gartner, only 20% of businesses have decided to employ crypto-driven digital marketing in the coming years. However, it is obvious that other companies will most likely follow them when the idea becomes a success. So, it looks like we’ll see more use of cryptocurrency in the digital marketing industry in the future.
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Impact of Cryptocurrency on Digital Marketing
Modern digital marketing focuses on reaching as many prospects as possible. To determine the target audience, digital marketers obtain statistics on the purchasing or browsing habits of people. This helps them to identify the target demographic, which in turn, improves their sales conversion rates.
But what changes can you expect by incorporating cryptocurrency into digital marketing?
Present-day commercials have five main components — the product; the content team; the advertising team; the consumer; and a hosting platform like Google, Facebook, or Twitter. Crypto-driven digital marketing helps to cut down the need for these ad hosting platforms.
Crypto-driven marketing lets you directly put your digital commercials on the blockchain instead of paying for the platforms. Besides, due to the increasing popularity of crypto, the move to blockchain technology is unavoidable.
5 Pros and Cons of Crypto-Driven Digital Marketing
Just like any other strategy, the crypto-driven digital marketing strategy also comes with pros and cons. Let’s start with the pros first.
Pro #1: Lower Advertising Costs- As discussed earlier, blockchain-based marketing will eliminate the need for a hosting platform, hence minimizing your costs.
Pro #2: Higher Sales Conversion- Since the uninterested parties will be fewer, your chances of conversion will be higher.
Pro #3: Greater Consumer Data Protection- Blockchain is undoubtedly decentralized and anonymous. So, consumers can rest assured that their data is safe.
Pro #4: Faster Transactions- Eliminating platform hosts also means that there will be direct transactions between you and your client. So, transactions will be faster.
Pro #5: Encourage Feedback- As consumers will be rewarded for providing information and engaging with the ads, chances are consumer feedback may increase.
Now, let’s discuss the cons.
Con #1: Finding the Target Demographic Will Be Hard- Due to data privacy, blockchain will make it hard for businesses to target a particular demographic.
Con #2: Consumer Data Collection Will Be Less- Unlike digital marketing, advertisers won’t be able to collect much consumer information. Data privacy will probably make it harder.
Con #3: Commercials Will Have to Be More Appealing- Since blockchain will increase competition, digital marketers will have to work even harder to create eye-catching ads.
The Future of Crypto-Driven Digital Marketing
In the future, blockchain users will probably have the option to select the ads they would like to view. This, in return, will give them crypto tokens. Moreover, offering personal information to advertisers may also reward them with cryptocurrency.
In a nutshell, crypto-driven digital marketing in the future will help people to curate their very own digital marketing experience.