While the entire crypto industry suffering from a prolonged bear market, the crypto marketing industry is also taking a massive hit. Just months ago, crypto ads were booming across the board. From time square to London undergrounds and major sports events like the NFL and Football leagues, cryptocurrency advertisements were at an all-time high. Celebrities like Matt Damon, LeBron James, Tom Brady, and Snoop Dogg were regular faces in such ads.
However, the global financial market crisis, as well as the ongoing bear market caused investments in such advertisements to massively shrink. According to recent data, major companies such as Coinbase, FTX, and Crypto.com have significantly decreased their marketing budgets in 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 advertisement. In June, the figure dropped to only 3 million. Last month, overall spending on crypto ads in the US was only $36,000 – the lowest figure since January 2021.
Will crypto ads take the center stage again?
According to marketing experts, crypto companies shouldn’t expect consistent returns from the ads market. The investment and returns from crypto advertisements are directly proportionate to the wider market.
When market prices crash and illicit activities such as fraud and hacks increase in this space, users become reluctant to invest, which ultimately lowers potential returns from marketing investments. For investment and returns to soar in this space again, liquidation on popular exchanges has to go down significantly.
It’s rather unclear when crypto ads will return to their glorious levels again. Popular exchange Crypto.com was launching massive campaigns worldwide last year, with budgets crossing $100 million at one point. After the recent decline in cryptocurrency prices, celebrities associated with such ads like Matt Damon were criticised heavily on social media. Unless investments and trade in this space increase again to such levels, we might not see such overwhelming spending on cryptocurrency marketing.