What to expect?
Digital marketing has become an important tool in the business arsenal; intense social media campaigns, targeted advertising, and heavy promotions are everyday words. By analysing user-generated data, businesses are also increasingly optimising their strategy and targeting their audience in an effective and impactful manner.
Despite all this, when it comes to trying to understand the type of advertisements that truly work and how far-reaching their implications are, the picture is still unclear. The use of blockchain and cryptocurrencies has also consequently increased.
It is interesting to note that, in this constantly evolving industry, despite all the skepticism, blockchain and cryptocurrency have already made inroads. Take digital marketing for example. Being the latest to join the bandwagon, digital marketing is still exploring the potential virtual currencies hold for it and at this point, it is interesting to speculate how things would change.
Cryptocurrency and blockchain are two of the most talked-about topics in digital marketing today. So, how can these technologies be used to improve campaigns and generate revenue? In this part of the blog, I will explore the potential they hold.
First, let’s start with cryptocurrency, also called digital currency is used in digital marketing. The cryptocurrency is used can be used to pay for advertising on websites, social media, and other platforms. It is also used to collect data, make purchases, and collect revenue.
Next is the blockchain – the digital ledger that is used to record transactions and other data in cryptocurrency. Cryptocurrency was the first major application of blockchain in digital marketing. The use of blockchain in digital marketing could revolutionise the industry and transform the way digital marketing is conducted. It holds potential to generate significant new revenue streams and improve the quality of data collected.
Currently, digital marketing involves synergy between multiple players – the consumer, the business (the advertiser), the platform (like Meta), and the content creator. With the use of crypto and blockchain, the number of required players come down to three – the consumer, business, and blockchain.
Through blockchain the users will be able to choose what kind of content and advertisements they want to view and they will gain crypto tokens for engaging with the content and for granting access to their data. This would also mean that businesses can’t simply target anyone they wish, for the user must express interest first.
This will lead to a rising rate of conversion as the users will be empowered to selectively engage with content rather than being forced to view everything that’s thrown at their faces. Another added benefit for the users is better protection of data and privacy, two diminishing features in today’s digital landscape.
The expected change
One of the biggest challenges traditional advertisers face when trying to reach the cryptocurrency audience is collecting copious amounts of data about the existing or potential customers.
Because cryptocurrency is largely anonymous, it is incredibly difficult for advertisers to track individual users across multiple platforms and websites. This limits the amount of data they can collect about individual users, which in turn limits the targeting data they can use to reach the relevant people.
The future of digital marketing is all about the transition from traditional to blockchain-based systems. With the first blockchain-based digital marketing platform launched earlier this year, we’re already underway. Over the next year, we will see an increasing number of blockchain-based platforms launched in the digital marketing space. This will provide opportunities for marketers to generate new revenue streams and improve the quality of data collected.
The advantages of advertising in cryptocurrency are numerous, but the most notable is the ability to reach a much larger audience than traditional advertising. Also, consumers have better control with Web 3.0, as they can choose with whom, what, when, where, and how they want to interact.
Digital marketing is evolving at a rapid pace, with new buzzwords emerging and old ones being redefined. The future of digital marketing looks promising, and crypto and blockchain would provide marketers with new opportunities to generate revenue and improve the quality of data collected.
Hussam Abdulkhaleq is Account Manager at Cicero & Bernay Communication Consultancy, an independent PR agency headquartered in Dubai offering new-age public relations consultancy to the UAE and across the MENA region. | www.cbpr.me