One of the most promising trends in digital marketing this year is blockchain and its close relative, cryptocurrency. Blockchain is proving itself to be extremely versatile, being able to solve problems ranging from electronic voting to healthcare data management. Today, digital marketing is now slowly adapting itself to the crypto world.
Although only about 9% of large companies have already committed to accepting crypto tokens as payment over the next few years, more will follow suit. Thus, it is important to understand how cryptocurrency will transform digital advertising:
How Crypto Affects Digital Marketing
The main use of cryptocurrencies is to trade. However, in the same way, it can also be used as a means to send and receive money without a trusted third party. In this sense, as a medium for transactions, cryptocurrency will present itself as a more secure alternative to credit cards and other payment methods, which are subject to fraudulent attacks.
This is especially true if the payment is done through smart contracts, which are digital agreements that are automatically executed once the terms of the agreement have been fulfilled.
Benefits of Crypto-Driven Digital Marketing
Blockchain and crypto are decentralised. This means that no single company or person will be in control of all the data, meaning that trust will no longer be an issue.
The blockchain ledger exists in multiple copies, and once a record is stored on the ledger, it is impossible to delete it. This means that there will be no more fake accounts, likes, or followers.
Blockchain does not need any third party or middlemen. This will not only cut costs, but also make processes easier and swifter.
Low Transaction Fees
Transaction fees are non-existent or negligible. This is because there are no middlemen to pay and no need for third-party payment services.
These factors will revolutionise the digital marketing landscape. Blockchain-based digital marketing is still in its infancy, but with time, it can only become more efficient, better, and more secure.
Drawbacks of Crypto-Driven Digital Marketing
The Technology Is Still Too New
The blockchain may be decentralised, but most cryptos are not. This means that users must rely on the crypto platform to determine the way crypto tokens are used.
The Crypto Industry Is Unregulated.
Most crypto companies do not follow the same rules and practices as public companies. This makes it hard for users to trust them.
How Digital Marketing Companies Can Utilise Cryptocurrency
Sending and Receiving Money
With blockchain and cryptocurrency, the currency itself becomes the medium for transactions. This eliminates the need to deal with third-party payment systems, which saves time and money.
Currently, the cost of online transactions is high. With cryptocurrency, companies can send and receive money in real-time. Also, there are no third parties to pay commission fees to.
Digital marketing companies will be able to keep their money instead of giving it to payment processors. Furthermore, they will have more control over their finances instead of paying a third party company.
Despite the obstacles, blockchain and its close relative, cryptocurrency, will surely change digital marketing as we know it. It provides transparency, reduces fees and helps establish trust between parties. These are the same things that are required to build a sustainable business. The next logical step is to create a gamified network of advertisers, publishers, and customers. By doing so, the blockchain and cryptocurrency can truly reshape the digital marketing landscape.
If you want to know more about cryptocurrency, digital marketing, and other topics that can help you as an entrepreneur, Brawler’s Guide is the right resource for you. Check out other informative articles that we’ve posted just for you!