Utility Tokens are Going to Change Rapidly, Here’s Why
Have you ever paid attention to the kind of ads that appear on your social media accounts and how they seem to be streamlined towards things that actually concern you and your immediate surrounding?
Sometimes it looks like someone is actually monitoring your activities and feeding your information to the advertisers who find a way of focusing on your interests. A sports lover seems to find ads relevant to not just sports, but his favourite sporting activity. Same with someone who is into fashion, most of the ads he sees will revolve around clothing and designs.
Are We All Being Monitored Online?
Nowadays on Facebook, by studying the users’ online behaviour and the kind of posts that they have previously engaged in, similar posts are fed to their timelines with actual notes that they have viewed something related to that before. Taking a closer look at how this process works will provide some explanation towards understanding proximity marketing.
The expectation of being monitored may not be out of place, only that how this is done is quite different from leaving a physical sentries at your doorpost who reports your activities to a superior officer at the other end. Technology has advanced, and monitors are everywhere. Human activities on the internet, especially on social media platforms, are highly monitored and personal data is almost always extracted.
When you see pop-ups or push notifications appear on a page you are visiting, asking for you to accept or deny certain permissions, that is clear information that there are sentries hovering around and gathering data about you. The difference lies in the motive of those who monitor our processes and how they are being utilized.
Why Do Google and Facebook Collect Users’ Data?
Google, Facebook and other social platforms harvest such information for revenue reasons. How else do you think they make money and capitalize so much? It is by collecting the data of users, and selling them to advertisers. This is the motivation behind the creation of intelligent systems that improve conversion rates in advertising. And so far, by understanding proximity marketing and taking full advantage of it, advertising has been revolutionized.
Different kinds of technology exist today that are redefining how information and individual data is managed and utilized. Artificial intelligence, neural technology, big data analytics and blockchain’s utility tokens are tools that are being deployed today in achieving proximity marketing.
In understanding proximity marketing, certain factors must be considered such as location, timing, relevance and the communication channel of the targeted customer. Hence, data analytics and mechanisms that supply precise information about the target’s behavioural trends are very essential in this system.
How Is Localization Affecting Advertising?
In terms of value delivery, proximity marketing is today proving to be an essential and welcome tool for both the advertisers and the customers themselves. Different models have been adopted, with influencers playing key roles in delivering ads directly to where they are relevant.
In previous times, internet users are confronted with tons of irrelevant advertisements that have nothing to do with their interests. Such ads are distracting and constitute a nuisance. That era is gradually passing away and evidence shows that all parties involved are more at home with proximity marketing.
The ultimate goal of any marketing process is eventual conversion. Results have shown that proximity marketing which aims at localizing the advertisement campaign for products reveal the following details, according to JWire;
- 53% of consumers are willing to share their current location to receive more relevant advertising.
- 57% of consumers are more likely to engage with location-based advertising.
- 62% of consumers share local deals with friends.
- 63% of consumers feel a coupon is the most valuable form of mobile marketing.
The bottom line of the above facts is that customers are more open to advertisements when the products appeal to their interests locally, and also when there is some form of value attached to their activities.
How Is Blockchain Introducing Value Online?
Talking about value, blockchain technology is introducing value to activities that are occurring across the internet. Among the above mentioned facts is the consumer’s appeal towards coupons which serve as a form of reward or compensation. Elevate that to actual value where users actually earn tokens directly for participating in a proximity marketing exercise, results will be unimaginable. This is a role that smart contracts and utility tokens are already fulfilling in the advertising ecosystem.
Rewards and compensation cannot be overemphasized in today’s world of digital advertising. As mentioned above, the roles that influencers play in digital marketing today cannot be overlooked. The influencer market alone is expected to be worth up to $10 billion. Therefore, establishing robust ways of effectively managing this fast growing sector will go a long way to create a stable market for advertising.
With this in mind, utility tokens are going to change rapidly in the roles that we know them for today. They will move from just entities to permit general platform participation and evidence of investment stakes to actual payment vehicles like cash.
The Combination That Is Changing It All
Blockchain smart contracts in conjunction with utility tokens will create an internal economy for the new era of advertising. This will simplify management processes and amplify such systems like has been developed by Volum to manage supply chain processes effectively with minimal complexity.
Well, that is actually the direction for the next era of digital marketing where blockchain is the backbone and utility tokens will fuel the engine of this disruption. The underlying properties of blockchain technology will enable measurable systems where input and reward can be managed properly.
Utility tokens as we know it today are designed to enable access to platforms which they are created for. They generally serve as PINs or passcodes that have value attached to them and are spendable on the given platform.
When listed on exchanges, these tokens can be traded as cryptocurrencies against other tokens or fiat. However with the topic under consideration, these tokens will indeed have a lot to offer to the industry going forward. Thanks to smart contracts, this might result in one of the major advances that blockchain will enable in the era of digital technology.
Here’s An Example Of Proximity Marketing On Blockchain
The SOFTWARE DEVELOPERS ASSOCIATES, INC (AIRTAB), which already forms part of the Volum portfolio, a holding company powered by blockchain, is a typical example where utility tokens will enable the understanding of proximity marketing.
Airtab connects users on its platform to bars and drinks, and brings together a community of Social Drinkers. The app works with the location software on a user’s smartphone to advise on bars and restaurants around his location that are registered on the platform.
By using blockchain technology, Volum enables a more effective administration for this product that makes it more convenient for both the company and the users.
Take for instance, as a traveler, you arrive at a new destination and have no idea on how to locate places. On top of that, you may not even have a note of the local currency in your wallet. With this new innovation, you have nothing to worry about.
Logging onto the Airtab app helps you find an ideal location close to you that will offer exactly what you are looking for. At the same time, you can settle your payment using the platform’s utility token and everything is sorted out conveniently.
In the end, it is all about understanding proximity marketing and the realization of how utility tokens are going to rapidly change how processes are executed.