Many crypto companies are cutting their marketing budgets, despite the need to regain customer confidence in the asset classes that have declined in recent months.
After spending millions of dollars on multiple advertising campaigns and Super Bowl commercials, many companies are now cutting advertising spending due to continued market volatility.
This year, a prominent cryptocurrency company has cut spending on platforms such as YouTube, Facebook and Hulu by more than 90%.
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Cryptographic companies cut ads
Advertising costs on TV have also decreased. Crypto.com’s marketing costs dropped from $ 15 million last November to $ 2.1 million in May, and Gemini’s marketing campaign was cut to $ 478,000.
Journal articles also cited a huge reduction in commercial spending in the industry, including appearances by prominent Hollywood celebrities and sponsorships that would place celebrities in sports arenas in Los Angeles and Miami.
This decline follows a severe decline in the Bitcoin market, significantly reducing the market value of cryptocurrencies by $ 2 trillion.
Ad expenditure has decreased as a result of the steep decline in cryptocurrency markets, which has slashed the value of cryptocurrencies by $2 trillion. Image: Money|HowStuffWorks.
Separately, cryptocurrency exchange giant Coinbase shut down its advertising program after spending more than $ 30 million in February. The company has been hit hardest by the current dire market environment.
In addition to cutting advertising budgets, Coinbase has also announced a freeze on hiring and an 18% employment cut.
Interestingly, certain market participants in this area argue that marketing efforts must continue to remain competitive despite a market crash.
Mission: Regain consumer confidence
Regaining consumer confidence is now the most important factor in the existence of the crypto industry.
Andrew Frank, vice president and senior analyst at research firm Gartner, said in a journal interview that “restoring the image of stability in Bitcoin investment” requires a combination of advertising and other types of communication. I said it would be.
Dennis Yeh, an analyst at Sensor Tower in the mobile app monitoring business, pointed out that macroeconomic uncertainty is a major cause of today’s dark crypto environment.
Crypto total market cap at $881 billion on the daily chart | Source: TradingView.com
“When Bitcoin is cheap, app engagement and new clients are usually low,” he explained.
Pam Kramer, Chief Marketing Officer of the crypto trading platform Voyager Digital, told the journal:
Given the weakening of the current market for Bitcoin and other related cryptocurrencies, this may be a difficult task to undertake, given that even the largest companies in the field are influencing. ..
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Featured image from WorldMagazine NewsPaper, chart from TradingView.com