thoughts and ideas from stratEDGE
How Cryptocurrency Technology Will Change Marketing Forever
July 19, 2019 at 8:00 AM
by Kaci B.
Please credit with an active link.

The Cryptocurrency Technology and Digital Marketing Current State:

At less than 10 years old, cryptocurrency technology may still be in its infancy. Nevertheless, it is seen as capable of revolutionizing different industries. If you are a professional in marketing, there are reasons why you should begin to pay attention to cryptocurrency technology.

But First, What Exactly is Cryptocurrency?

Cryptocurrency is a kind of blockchain technology, the kind that Bitcoin and other such currencies are based on. In essence, the technology is based on the maintenance of vast distributed records called ledgers on open databases that are decentralized over servers all across the world.

One of the reasons that such a system of maintaining records is considered very secure is because what information is added to one ledger is updated across every decentralized ledger. Technically, hacking such a diverse range of servers would be near impossible.

Many of the cutting-edge cryptocurrency applications written about and advertised today are still a few years into future. While there are few practical applications available now, it's still important to begin to learn and to look ahead in order to stay ahead. When these changes eventually do arrive, you will want to be ready.

Consumer Information May Become More Difficult to Access:

At this point, collecting information about consumers is easy. There are large platforms such as Google and Facebook that own the data and sell access to it. Marketers can pore over the data available to determine what audience segments to target, to test what kinds of ads work on consumers of one or another kind of preference, and to predict how consumers behave.

Close to 90 percent of internet-using consumers have, at some point, taken steps to shrink their digital footprint in order to protect their privacy. In other words, consumers do not want to let advertisers into their lives. Cryptocurrency technology only makes it easier for consumers to withdraw their information from the public sphere.

As consumers begin to hide their information behind encrypted walls, marketers can find it harder and harder to figure out what their preferences are, or to form future advertising strategies. For this reason, marketers need to begin working on new ways to collect consumer information.

Consumer Information May Get More Expensive

Direct purchase is one possible way to overcome the lack of access to user data that is likely to be the reality of marketing in the future. Rather than deriving information about consumer behavior from observing their consumer behavior on the internet, marketers could purchase such information directly--consumers could be asked to offer their information in return for payment.

There already are new marketing businesses in place in anticipation of this kind of future. One company named Steem calls itself a social blockchain company. It has tens of thousands of user accounts, and it allows marketers to directly engage with consumers and gain the information that they seek. Certainly, directly buying information from consumers is expensive. Nevertheless, users profit from such activity. The more engaged they are, the more willing they tend to be to offer assistance.

The current way in which marketing information is obtained will last undisturbed for years. When change does come, however, it will appear quickly. While businesses do not need to completely switch to new, direct engagement customer information models yet, it could be a good idea to experiment with them on a limited scale. If they are the future, it would be important to gain competence in them.

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