Crypto Advertising Investments Fall From dollar85 Million to dollar36K in the US
Categories: Crypto News
Crypto Advertising Investments Fall From $85 Million to $36K in the US
While the entire crypto industry is suffering from a prolonged bear market, the crypto marketing industry is also taking a heavy hit. Just a few months ago, crypto ads were booming across the board. From Time Square to the London Underground and major sporting events like the NFL and Football League, cryptocurrency advertising was always at a high.
Celebrities such as Matt Damon, LeBron James, Tom Brady and Snoop Dogg were regular faces in such commercials. However, the ongoing bear market coupled with the global financial market crisis caused investments in such advertisements to shrink substantially.
According to recent data, major companies such as Coinbase, FTX and Crypto.com have significantly reduced their marketing budgets over the past few months. In February this year, during the annual Super Bowl, the crypto industry in the US spent over $84.5 million on marketing and advertising. In June that figure
dropped to just 3 million.
Last month, total spend on crypto ads in the US was only $36,000 - the lowest figure since January 2021. Will crypto advertising take center stage again? According to marketing experts, crypto companies should not expect consistent returns from the advertising market. Investments and returns from crypto ads are directly proportional to the broader market.
When market prices fall and illegal activities such as frauds and hacks increase in this space, users become reluctant to invest, which ultimately reduces the potential return from marketing investments. In order to revive investments. In order to revive investments and returns in this sector, liquidations on popular exchanges would need to be significantly reduced. It is unclear when crypto advertising will return to its spectacular levels again.
Popular exchange Crypto.com was launching a massive worldwide campaign last year, with budgets exceeding $100 million at one point. Following the recent drop in cryptocurrency prices, celebrities such as Matt Damon were heavily criticized on social media associated with the ads. We may not see such huge spending on cryptocurrency marketing until investment and business in this sector rises to such a level again.