The Low-Down On Cryptocurrency.
Since making its way into the limelight, cryptocurrency has changed the way companies market to their customers and, ultimately, the marketing sphere. As it rises in popularity, it becomes more important for companies to understand how it works and how they can utilise it for marketing purposes. Despite the mystery surrounding it, cryptocurrency isn’t all too complex. Let’s look at how it works and then get into how it benefits both the company and the consumer. Enter crypto-marketing.
How Does It Work?
When you transfer money to somebody through a traditional online payment, you give the other party permission to pull money from your account. That money then passes through a bunch of parties, including your card company, your bank, the receiver’s card company and their bank.
When it comes to cryptocurrency, money is pushed from one party to another directly. There’s no third party, meaning there’s much less admin and much lower transfer fees.
Another perk (and essential point for this article) is that it’s difficult to trace. Because transfers are peer-to-peer, the only recorded transactions are registered in a decentralised blockchain (a sort of public record), which only shows minimal user information. As a result, companies find it more challenging to obtain consumer information and can’t effectively advertise to them anymore.
If there’s no third party to obtain information from, how does a company market to its customers?
By paying them.
Privacy is a thing.
Because personal information isn’t stored in one location anymore, companies have to market to customers directly. This means that:
- There’s no contract with the middle man (because there is no middle man)
- People can choose how specific they want to be in these new (non-alterable) contracts that automatically terminate when they reach their deadlines instead of being renewed.
Because personal information isn’t stored in one location anymore, there’s no way to contact a single company to get a hold of consumer information. It means that the consumer has to agree to receive ads. It might sound like a bad thing, but it’s actually not.
Through the use of basic attention tokens (BAT), consumers now have the chance to be paid for viewing adverts. Everybody wins, and no unnecessary funds are expended on digital platforms. There are limited paths that companies can go down to market their products on digital platforms. Companies can use sites such as Google or Facebook to use their platforms for advertising purposes, but this can be expensive WITHOUT factoring in extra costs for optimising advertising. That’s not the case with crypto. Because no single entity owns any personal information, they have no way to offer a competitive edge. It cuts out unnecessary middlemen.
It also helps to build a strong relationship between company and customer by offering more transparency. It dismantles corporate walls, revealing a willingness to jump headfirst into innovation, which appeals to people.
One more crucial thing to note is that it seriously reduces fake ads. The amount of phoney marketing in the cryptocurrency sphere is significantly lower, meaning fewer complaints from angry customers and the opportunity for more trust-building with happy ones.
- Crypto-marketing removes the middle man.
- Personal information isn’t held by one party who can then sell that information.
- Customers can choose to see adverts and are rewarded for doing so.
- Fake ads are reduced, and better relationships are developed between company and consumer.
- Transparency is more evident.
Is Crypto-Marketing The Key?
The creation of cryptocurrency has provided people with the opportunity to shift themselves out of the public eye. While this is great for them, it disrupts the systems around them, such as digital marketing.
As more and more people begin to understand and adopt crypto, the need to utilise it as an avenue for viable marketing increases. Besides the fact that it saves companies money, it also helps build stronger company-customer relationships because of the lack of middlemen.
At the end of the day, there are many reasons to be wary of the unpredictability of crypto-marketing. Still, the often-unspoken benefits of crypto shed light on a possible future where the power of information is given back to the people, overall making for more effective marketing. People are no longer put off by ads because they choose to receive them. It may shrink the buyer base, but those who remain will form part of a core market that’s as sturdy as tungsten.