All marketing agencies want to get ahead of the race when it comes to exhibiting their competitive advantage and value to prospective clients. Many new technological opportunities are emerging, and one of the biggest things tech giants and enthusiasts are keeping an eye on and harnessing is blockchain technology and cryptocurrencies.
So, how do blockchain and cryptocurrency in marketing work? In this blog, you’ll gain a better understanding of what blockchain technology and cryptocurrencies are, and how they can help increase your marketing efforts.
What is Blockchain Technology?
Blockchain is a secure database that stores information electronically in a digital format. It differs from traditional databases in the way that it stores information; blockchain stores data inside blocks, sequentially chained together in chronological order via cryptography.
This irreversible timeline of data ensures all the data stored is completely transparent, with digital information recorded and distributed, but not edited (altered, deleted, or destroyed).
Blockchain is essentially a digital ledger, a system that is impossible to penetrate by hacking, editing, or cheating. It has been utilised by several sectors, including finance, IT, and banking. Blockchain eliminates the need for middlemen or centralized third parties to control transactions – providing timestamped and transparent records for total peace of mind.
What are Cryptocurrencies?
Cryptocurrencies are a form of blockchain technology. You might be familiar with the names Bitcoin and Ethereum, popular cryptocurrencies that use blockchain to operate. They are essentially digital currencies that the public can invest in, trade, and use to make purchases.
If, for example, you invest in a cryptocurrency on an exchange platform (e.g., Coinbase which lists every available decentralized coin) when it is worth very little, when the value of the coin increases, so does the money you put into it by however many per cent the value went up. This is why crypto investments are trending.
Companies Using Blockchain & Cryptocurrency
Blockchain in digital marketing is becoming sought after due to its benefits. You may wonder if it’s even possible to harness blockchain technology for marketing. It is, however, blockchain is complex and can take some time to get used to.
Well-known companies who are using Blockchain and Crypto include:
- Plus, many more
How Does Digital Marketing with Blockchain Work?
Businesses collect consumer data unlike ever before, and this data is used for major business decisions and developments such as new products, pricing, campaigns, and strategies. However, consumer data is vulnerable to fraud, mismanagement, and being leaked as well as inconsistencies that make the data less accurate.
Transactions on blockchain platforms are time-stamped, captured in blocks, and sequentially chained to create an official ledger. Blockchain helps businesses maintain transparency in operations as trust, authenticity and product details are what consumers want. It is impossible to hide anything on a blockchain, and this transparency not only saves money but real-time data aggregation.
Blockchain can help businesses make more money, reach new customers, and solve business problems with improved data quality and access. Real-time access on a blockchain platform will help marketers gain visibility over customer profiles, points, purchase patterns and history, and responses to ads and promotions.
So, rather than paying a third party like Google or Facebook to acquire the data they own on your target customers, you will get it from an accurate source – directly from the consumer – by paying or incentivising them.
In the same way, marketers can use smart contracts. These are virtual agreements where there is no need for validation, review or authentication by intermediaries. With a smart contract, users can activate it when they subscribe to a newsletter or sign up for a rewards programme.
How Blockchain & Cryptocurrency Could Improve Marketing Efforts
Countless companies are harnessing blockchain technology and using (or creating their own!) cryptocurrencies. If you’re a business considering blockchain and crypto to help improve your marketing efforts, the following may help you make a decision:
- Payments – Blockchain and cryptocurrency will have a significant impact on how we make purchases. With the rise in crypto credit cards, stablecoins and even online retailers allowing users to pay with crypto, it is smart to see how a cryptocurrency can work within your business sooner rather than later. Digital currencies have the potential to eliminate cash altogether.
- Analytics – Utilising a blockchain decentralized ecosystem to gather and analyse consumer data is highly accurate, secure, and consistent.
- Content – Blockchain could change how content is stored and distributed. A decentralized ledger could be a leading solution in copyright protection. This will provide consumers with more freedom on how they pay for or consume content.
- Social Media – Meta is working on its own cryptocurrency for the Metaverse called Diem coin. It acts as an NFT (non-fungible token) so users can exchange, purchase, and withdraw securely in the virtual world, so it won’t be long before crypto in social media becomes the norm. As an example, marketers could set up tokens for campaigns and reward their customers.
- Loyalty Schemes – When a new transaction occurs on a decentralized ledger (blockchain platform), a unique token is created and assigned to the transaction. Many industries have loyalty schemes where their consumers earn points, like travel companies. However, with blockchain, people can instantly redeem and exchange multiple loyalty point currencies in one place.
- Advertising – Businesses can bypass today’s social media dominators by interacting with consumers directly and sharing the reward of ad exposure directly with them.
As more and more people worldwide adopt blockchain technology and cryptocurrencies into both their personal and working lives, it is highly likely we will see a rise in the marketing industry too.
Bigwave Marketing is a full-service agency filled with marketing professionals from a variety of backgrounds. Get in touch today if you’re interested in our services.