Crypto Ad Spending Is Down, But Awareness Is Still Key

Crypto ad spending is down across the industry, but awareness is still key, according to experts.

According to reports, American expenditure on cryptocurrency television advertising has plunged off a cliff, mirroring the situation of the markets. However, two crypto businesses are reported to have said that’s no justification for a hiatus.

Crypto Ad Spending Is Down, But Awareness Is Still Key

According to ISpot, only $36,000 was spent on television advertising in July, which is 99.9% less than the $84.5 million spent in February, according to a report published on Wednesday by Bloomberg.

The $84.5 million in advertising was spent during the U.S. Superbowl when Coinbase, FTX US, and Crypto.com splashed out on high-profile advertisements to promote their products.

Some cryptocurrency companies, including Singapore-based digital asset management company IDEG Limited, claim they continue to spend significantly on advertising despite the rumored fall in TV ad expenditure. This is done to retain brand recognition.

According to Markus Thielen, chief investment officer at IDEG, his business has been extremely careful with its cryptocurrency investments, which has allowed them to place themselves in a really strong position to take advantage of this present downturn.

Advertising, according to Thielen, is important for a variety of reasons, not the least of which is spreading brand awareness:

“We see this part of our duty to educate, give back to the community, build our brand, and provide general support.”

Some Scale Back

However, Block Earner, an Australian cryptocurrency investment platform, has scaled back its marketing initiatives in response to the FUD surrounding the current bear market, according to Apurva Chiranewala, general manager of the company.

He revealed, however, that his business has changed its focus to encompass market education:

“Instead of us paying money to un-FUD the market, we thought its better to […] focus on building and answering questions and educating the market.”

According to Bill Daddi, if other significant companies choose to run TV ads once more, the messaging will probably shift. Earlier advertisements pushed FOMO, according to Daddi, head of the marketing firm Daddi Brand Communications, but corporations may switch to education when consumers recover from the current bear market.

Even though TV ad expenditure is down, sports partnership advertising is still quite popular.

On August 10, The Financial Review revealed that over the previous 18 months, cryptocurrency firms including Binance Holdings, OKX, and FTX have spent over $2.4 billion on sports marketing. They are investing $12 million in agreements with the sports team Man City and $135 million for the naming rights to an NBA arena in Florida.

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