Crypto firms decrease marketing spending amid adverse market conditions

After spending hundreds of millions of dollars on advertising, several are suddenly putting the brakes on their marketing expenditure.
After spending hundreds of millions of dollars on advertising, several are suddenly putting the brakes on their marketing expenditure.

The Crypto price slump has already wiped out around $2 trillion in value in the past few months. Increased scrutiny from regulators around the world is working as a catalyst over the situation. Months after leading crypto firms spent hundreds of millions of dollars on advertising campaigns, sponsorship deals, and Super Bowl ads in an attempt to make themselves into big names, several are suddenly putting the brakes on their marketing expenditure, according to a report.

Undoubtedly, some crypto companies have kept up their marketing spending, appointing famous spokespersons and airing defiant advertisements despite the market turmoil. However, the recent advertising blitz by crypto companies, which last year rolled out advertisements featuring celebrities like Naomi Osaka and Matt Damon, struck deals to put their names on arenas in Miami and Los Angeles and bought several Super Bowl commercials that some dubbed the game the Crypto Bowl, has lost steam, at least temporarily.

The move has left ad sellers and agencies doubting whether crypto is going to be the cash cow they had anticipated and crypto proponents arguing what the sector should do to recover pace with consumers.

Marketing spending decreased by 90%

As per a recent report by market-research firm Sensor Tower, big crypto brands’ overall marketing spending has decreased by more than 90% since November last year. Analyst Dennis Yeh says:

“A big part of this is that, overall, macroeconomic confidence is pretty low right now. Plus, when the price of bitcoin is low, engagement on the apps, and new customers, tend to be low.”

According to data by Sensor Tower’s iSpot.tv and Pathmatics, among the major crypto companies that have pulled back marketing spending are exchange platforms Crypto.com and Gemini.

Spending on national broadcast TV and digital advertisements by Crypto.com decreased from $15 million in November 2021 to $2.1 million in May 2022.

Meanwhile, the amount spent on TV and internet ads to promote Gemini fell from $3.8 million in November 2021 to $478,000 in May 2022.

The majority of Coinbase’s advertising has also been put on hold after the company spent more than $31 million in February on a floating QR code-based Super Bowl campaign.