Is Crypto Currency Changing Digital Marketing?
In recent years, crypto currency has grown, both in value and in popularity. In fact, many industry leaders believe crypto currencies have the power to change finance and marketing forever. But as digital currency, like bitcoin, becomes more common, crypto currency can present some problems for marketers looking to collect consumer data.
For those readers who need a crash course, cryptocurrency is a type of blockchain technology, or peer-to-peer network, through which digital currency is sent and accepted, among other things.
What makes digital currency different from the traditional monetary system we use today? Transactions are created, verified, secured and executed on a decentralized ledger.
This means that digital currency can be sent and received anonymously and securely without intermediaries or fees from financial institutions. The anonymous nature of cryptocurrencies is what can shape the future of marketing and how social media can affect its growth.
Cryptocurrency and Social Media
Social media affects our lives on a daily basis. Some people even believe that if something isn’t in vogue on social media, it’s simply not happening. This is why social media plays such an important role in the success and value of cryptocurrencies.
People interested in bitcoin, which is currently the most popular and valuable cryptocurrency, can get almost any information through social channels. Facebook, Twitter and especially Reddit have helped to launch bitcoin into the mainstream. Facebook is also considering cryptocurrency as an investment opportunity.
Cryptocurrency Changing Digital Marketing
Due to the decentralized peer-to-peer network maintained by blockchain and cryptocurrency, marketers will find it more difficult to collect consumer data. And without complete and timely consumer data, digital marketing strategies can be very difficult to target.
The use of cryptocurrencies is also another step towards online anonymity, something that many internet users aspire to. According to the Pew Research Center, “86% of Internet users have taken online measures to remove or mask their digital footprints, from deleting cookies to encrypting email, from avoiding using their name to using networks virtual that mask the Internet Protocol (IP) address.”
The smaller the digital footprints the less consumer data marketers can collect to identify key audiences and demographics, predict consumer behavior, test ads, and more.
Cryptocurrency transactions allow consumers to purchase products and services anonymously and securely. While this may be great for consumers, it has caused some serious setbacks and hiccups for marketers and will continue to do so as the digital currency gains momentum.
Future Consumer Information May Become Costly for Digital Marketers
The role of cryptocurrencies in the future of social media and digital marketing is still uncertain. The influence social media has on the growth and value of the digital currency may be flipped upside down, paving the way for new crypto-minded social networks.
Digital marketing professionals, on the other hand, may have to shell out more dollars for consumer research to get the data they need to achieve advertising success. This puts much of the power back in the hands of consumers, yet another breakthrough to cryptocurrency adoption. But either way, the future could be valuable for everyone.
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