Cryptocurrency Will it help brands stand out in a competitive market

Cryptocurrencies.. Some industry observers have revealed that marketers could explore the opportunity of using cryptocurrencies to attract customers and generate brand engagement.

The interest in cryptocurrencies continues to grow with each passing day as the digital asset market continues to be driven by these cryptocurrencies.

Keeping in mind the growing popularity of cryptocurrencies, brands are using existing digital currencies such as Bitcoin, Ethereum, etc. or launching their own digital currencies in an effort to attract customers in an increasingly competitive and crowded market.

Shashank Langekar, chief strategy officer at Taproot Dentsu, said the strategy is essentially an act of sparking interest in brands by chime in with crypto times.

Lanjekar believes that if this is done purposefully and memorably, it should definitely lead to brand engagement in the short term as much as loyalty and rewards points programs have been around for decades.

Shrenik Gandhi, co-founder and CEO of White Rivers Media, agrees with this assessment, saying: “While some brands rely on cryptocurrency to establish unique authority and awareness in the digital arena, legacy names embrace it to elevate their engagement and purpose in the lives of consumers.

Given the currently high rates at which cryptocurrencies are traded, it makes sense for some companies to launch their own tokens as a way to attract customers as well as increase brand name recognition at the same time.

For example, Gandhi points out that Facebook’s upcoming digital token project “Libra” aims to empower billions of users, with or without a bank account, helping users to perform transactions on the platform with ease.

Meanwhile, Chingari’s $GARI token for the Indian short video app has already been used and it directly enables creators in the ecosystem to monetize their content on the platform.

All of this is made possible by the increasing adoption of blockchain technology, which has also spurred interest in NFTs and even Web 3.0, the brightest new emerging technology that is getting technologists and marketers alike excited.

For Akshay Golekar, co-founder of Optiminastic Media, it’s clear that immersive technology adds to the brand’s value.

“Given that Web 3.0 is in its infancy in India, brands know that the sooner they can use the blockchain technology they are using, the better, and therefore they are taking advantage of it to build their own currency,” he said.
The democratic use of these coins on Web3 makes sense, and brands realize how powerful it can be if they get involved early on and the coin becomes popular.

What remains, however, is whether brands are using cryptocurrencies as a tool for social commerce or are in fact heading towards taking it seriously.

As Lanjekar says: “It is definitely a useful tool for social commerce and a talking point among the hyper-digital audience who see this currency as convertible as well as transactional currency. Whether this turns a transaction into repetitive behavior in favor of brands is something we will need to monitor during these times. The period before we can form an opinion.”

However, there are certainly earlier examples of new systems being adopted that are now popular, with Lanjekar referring to reward points from credit card brands, which started as a one-off and are now so integral to credit card use that hotels, airlines and even now brands Commercial e-commerce is pushing to use it over other payment methods.

He added, “The goal is to repeat engagement (what we often misinterpret as loyalty, because to me loyalty is what a consumer does without a tactical push).

Branded cryptocurrencies will find it relatively difficult to replicate transactions versus simply entice a first-time consumer with the emotional excitement of novelty and rational utility of value so my point is that even if they stay, they could end up as a core component of branding like reward points and loyalty programs in yesterday”.

While Gandhi emphasized that these days are still early days, he believes that the potential is still enormous, saying, “At the moment, branded cryptocurrencies are beyond the purpose of utility; They are now a vehicle for innovation in the brand experience – an idea with tremendous marketing value, a vehicle that delivers the gift of anonymity, a channel that mitigates fraud risk, and a streak that sets the brand apart from its competitors.”

He cites the Brave case as an example: A web 3.0 alternative to traditional browsers, such as Chrome, Safari, and Firefox, Brave has begun rewarding its users with Basic Attention Tokens (BAT) whenever they choose to display privacy-friendly ads, called “Brave Ads” on the platform.

By the end of 2021, the platform had surpassed 50 million monthly active users – a testament to the fact that Web 3.0 users are looking for alternatives to the surveillance economy.

Ultimately, marketers believe that the massive potential of Blockchain remains to be fully unlocked in every space, and with a new generation of customers seeking to stay connected with the rest of the world, both physically and physically, all marketers now see are untapped opportunities, even Unexpected.

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