Crypto-currency is a new technology that is quickly being adopted by many industries. Many experts predict that this technology will revolutionize marketing and finance in the years to come. As many businessmen work towards understanding the benefits and risks of crypto-currency, it has already affected the marketing world. Here is a brief overview of crypto-currency and its impact on marketers.
What is Crypto-Currency?
This is a block-chain technology similar to the one used by bit coin. A block chain is a huge ledger of transactions. It is one big open and communal database operating in a decentralized network. This database enables users to retrieve and add information to it in an anonymous fashion and without the security risks presented by many money transfer systems.
In simple terms, instead of paying for a service or item with a credit card, you can use a crypto-currency like Bit coin. This payment method has gained popularity in a short time. In November 2016, studies show that the market capitalization of crypto-currencies such as bit coin had reached $13.8 billion.
What Impact Does The Crypto-Currency Have on Marketers?
Crypto-currency Makes It Difficult To Obtain Consumer Information
With crypto-currency, it is difficult for a marketer to gather the kind of information on consumers that helps them with their advertising strategies. Crypto-currency technology keeps buyer information secure, encrypted, and anonymous, making it difficult to determine a particular consumer’s purchases or how they are reacting to marketing tactics. Therefore, as a marketer, it is high time you devised other ways of obtaining consumer information.
Consumer Information and Attention Will Be Expensive
One alternative to overcoming the issue of a lack of consumer information is buying personal information. Currently, marketers pay social media and other platforms to gather client information but when crypto-currency becomes popular, marketers will have to be paying consumers for their personal information.
The big challenge here is that customers will be demanding for more compensation for their purchasing trends, and for other data than what a platform is currently charging for the same information. The up side is; however, if a consumer gives you access to their information, they are likely to purchase your brand.
Summing It Up
While cryto-currency may not present an immediate threat, it is definitely a reflection of where digital technology is headed. The shrewd marketer or entrepreneur is one who plans bearing in mind the future of their particular industry. It is; therefore, a good idea to familiarize yourself with crypto-currencies to be on the safe side when they become popular.