{"id":9278,"date":"2022-03-14T14:58:35","date_gmt":"2022-03-14T14:58:35","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/financial-future-or-false-promises-crypto-firms-go-big-on-ads-in-2022\/"},"modified":"2022-03-14T14:58:36","modified_gmt":"2022-03-14T14:58:36","slug":"financial-future-or-false-promises-crypto-firms-go-big-on-ads-in-2022","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/financial-future-or-false-promises-crypto-firms-go-big-on-ads-in-2022\/","title":{"rendered":"Financial future or false promises? Crypto firms go big on ads in 2022"},"content":{"rendered":"
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Advertisements are in abundance everywhere we go \u2014 from billboards seen throughout road trips to commercials displayed every fifteen minutes or so during television shows. It\u2019s also the case that most advertisements today display messages from major internet-based brands like Amazon, which was ranked as the largest advertiser in the United States in 2020. Telecommunication providers and payment giants like American Express have also been listed as some of the biggest advertisers in the United States. These companies typically spend billions of dollars per year on marketing messages aimed to inform, persuade and remind consumers about their products and services.\u00a0<\/p>\n

2022 is the year for crypto advertising<\/h2>\n

While dot-com brand commercials and social media advertisements continue to bombard consumers, some advertising executives believe that crypto companies will dominate advertising in 2022 and in the years to come. <\/p>\n

Mark DiMassimo, founder and creative chief of DiGo \u2014 a New York-based marketing agency \u2014 told Cointelegraph that he believes crypto-focused ads will dwarf the dot-com and social media phenomenon due to the rise of Web3 and the integration of crypto assets within digital ecosystems known as the Metaverse.\u201d DiMassimo said:<\/p>\n

\u201cThis is not typical consumer language, but almost every startup I work with or LinkedIn job offerings I see mention the Metaverse and Web3 now. Cryptocurrency is central to all this. Therefore, I think this will be a bigger ad boom than the dot-com and social boom.\u201d <\/p><\/blockquote>\n

DiMassimo added that the rise of nonfungible tokens (NFTs) has also increased the popularity of cryptocurrency. This, in turn, has allowed crypto companies to obtain large advertising budgets. \u201cMany early adopters focused on word of mouth marketing or advertising through Reddit, Discord and other social channels. We\u2019ve reached the next level though, which is being displayed through classic marketing and advertising techniques,\u201d explained DiMassimo. <\/p>\n

For instance, DiMassimo pointed out that crypto commercials displayed during the 2022 Super Bowl highlighted the notion that blockchain companies will dominate the advertising world moving forward. \u201cI called the 2022 Super Bowl the \u2018Crypto Bowl,\u2019\u201d he joked. To DiMassimo\u2019s point, though, 2022 Super Bowl ads from leading crypto companies like FTX and Coinbase did make an impact, attracting an abundance of media attention while also demonstrating that crypto companies have massive advertising budgets. <\/p>\n

An NBC executive disclosed that NBC was selling 2022 Super Bowl ads for $6.5 million for 30-second spots to put this in perspective. Bloomberg reported that some ads sold for as much as $7 million this year. \u201cProduction values are going to \u2018Mars\u2019 and crypto companies want to have their voices heard in the real world,\u201d said DiMassimo. As such, he believes that more crypto organizations will sponsor ads with celebrities or with sports stadiums to prove they mean business. <\/p>\n

Are crypto commercials selling false promises?<\/h2>\n

While the rise of crypto ads is notable, some industry experts are aware of the dangers associated with cryptocurrency companies promoting advertisements to the masses. For instance, Richard Smith, an investing expert and chief operating officer of risk management tool RiskSmith, told Cointelegraph that this year\u2019s Super Bowl ads from crypto companies were a disappointment in the sense that they completely failed to be honest with their audience: <\/p>\n

\u201cThese commercials didn\u2019t disclose any risks involved with high levels of financial speculation. There was no recognition of risks at all in fact \u2014 only rewards. I understand that Super Bowl ads are supposed to be fun and lighthearted, but these were not authentic.\u201d<\/p><\/blockquote>\n

Smith elaborated that the Coinbase Super Bowl commercial boasted<\/a> the reward of getting free Bitcoin (BTC) simply by scanning a color-changing QR code, which silently moved across the television screen. When scanned, the QR code redirected users to Coinbase\u2019s landing page that promoted a Bitcoin giveaway and sign-up promotions. <\/p>\n

Coinbase 2022 Super Bowl ad. Source: DiGo<\/em><\/figcaption><\/figure>\n

Smith added that eToro\u2019s Super Bowl commercial promised<\/a> users the ability of \u201cgoing to the moon\u201d by trading cryptocurrency and stocks. <\/p>\n

eToro 2022 Super Bowl ad. Source: eToro<\/em><\/figcaption><\/figure>\n

While these commercials may have been captivating, Smith believes that in the long run, these advertisements will ultimately be disadvantageous to crypto companies due to what he believes is a lack of authenticity. \u201cI think cryptocurrency is more about independence and transparency, and those who care about crypto will be turned off by these obviously pandering messages,\u201d he remarked. <\/p>\n

Smith was not the only one frustrated by 2022 Super Bowl advertisements from crypto companies. As Cointelegraph previously reported, United States Senate Banking Committee Chairman Sherrod Brown also blasted the ad-makers for not including appropriate warnings and risks involved. \u201cI don’t think crypto ads should be bluntly disingenuous about the benefits of their product. People are getting hurt badly today because of the whole advertising-driven meme madness,\u201d said Smith. <\/p>\n

DiMassimo begs to differ, noting that the reason crypto Super Bowl ads generated criticism was that they resonated with the mainstream. According to DiMassimo, Super Bowl advertising isn\u2019t about educating consumers in 30\u201360 seconds but rather about leaving people with a memorable feeling. He added:<\/p>\n

\u201cFor example, with Coinbase and the QR-code, the idea was to get people to sign up and remember their exchange while also creating conversations. Coinbase increased the chances of this with digital repetition, so people will likely remember their brand over others. Emotions are more important in advertising than rational. I think we will most likely see more people sign up for Coinbase as a result.\u201d <\/p><\/blockquote>\n

Rationale behind the advertisements <\/h2>\n

To DiMassimo\u2019s point, many Super Bowl watchers did respond to the Coinbase commercial. Coinbase published a blog post the day after the event in which Kate Rouch, chief marketing officer for Coinbase, stated that the exchange saw over 20 million hits on its landing page in one minute. \u201cVolume that was historic and unprecedented,\u201d wrote Rouch. He added that engagement was six times higher than the company\u2018s previous benchmarks. <\/p>\n

Unfortunately, Coinbase\u2019s website crashed following its 2022 Super Bowl ad, resulting in a slew of additional issues. However, this technical mishap didn\u2019t seem to create major issues for the cryptocurrency exchange. As Rouch wrote, \u201cunderstandably, this volume led to us temporarily throttling our systems.\u201d<\/p>\n

While the Coinbase QR-code commercial created quite the scene during this year\u2019s Super Bowl, Brad Michelson, head of U.S. marketing at eToro, told Cointelegraph that eToro views the Super Bowl as one of the best brand-building opportunities in the U.S. \u201cThis makes it the perfect opportunity for our brand to put a stake in the ground, particularly in the scope of the \u2018crypto bowl\u2019 that we saw this year,\u201d said Michelson. In regards to eToro\u2019s To the Moon commercial, Michelson explained that the ad showed how the company perceives social investing: <\/p>\n

\u201cIt was especially important for us to include nods to the crypto community. But, it was also a priority to help make investing in these assets as approachable as possible. Our team was able to accomplish exactly that through this campaign.\u201d<\/p><\/blockquote>\n

Michelson added that eToro has had a large crypto advertising footprint in the U.S. for the past few years, noting that the company has experimented across television, radio and print channels to reach new audiences. While this may be one goal, Michelson also mentioned that eToro believes education is the key to investing and will, therefore, be investing more time in this area moving forward. \u201cCrypto is part of eToro\u2018s lifeblood and we plan to continue promoting the industry through our advertising into the future,\u201d he remarked. <\/p>\n

Smith expressed skepticism, however, remarking that crypto companies should be disclosing how blockchain technology makes digital sovereignty possible, rather than pushing out ads for free Bitcoin that may invoke fear of missing out, or FOMO. With this in mind, Smith mentioned that one crypto company did connect more with users in his opinion. He noted that Binance\u2019s Jimmy Butler ad that appeared<\/a> before the 2022 Super Bowl across social media channels was less about hype and more about trust: \u201cThis is what crypto is about.\u201d\u00a0<\/p>\n

Indeed, Binance\u2019s 30-second social media ad featured American basketball star Jimmy Butler who stated that he doesn\u2019t know much about cryptocurrency. Butler added that Super Bowl watchers should always do their own research, regardless of what advertising messages say.<\/p>\n

Patrick Hillman, chief communications officer at Binance, told Cointelegraph that while Binance looked at the opportunity to run an ad during the 2022 Super Bowl, the company decided against it and instead launched its message on social channels before the game:<\/p>\n

\u201cThe actual return on investment of Super Bowl ads is tough to gauge. Most companies want to do this for brand awareness, which isn\u2019t our goal. I also think it\u2019s bizarre to advertise Web3 and blockchain in between beer and Coca-Cola ads.\u201d <\/p><\/blockquote>\n

Hillman added that while most crypto campaigns are celebrity-driven to create brand awareness, Binance aims to focus more on addressing education for new users through channels like Twitter, Discord and Telegram. \u201cWe are taking a different approach from many of our peers. The crypto industry has no ceiling when it comes to innovation. There are a lot more new users now than educated users, so finding ways to effectively educate these individuals is important,\u201d he said. <\/p>\n

And, although Binance\u2019s \u201cunofficial\u201d 2022 Super Bowl campaign did feature a well-known figure, Hillman argued that the goal was to use a notable name to flip the advertising model around to encourage users to do their own research when it comes to crypto. \u201cWe want people to fully understand the opportunities associated with cryptocurrency and this simply can\u2019t be done in a 30-second Super Bowl ad.\u201d <\/p>\n

Given the fact that Binance\u2019s advertisement was not displayed during the Super Bowl, some may wonder if the message was effective. According to Hillman, this wasn\u2019t an issue, noting that Binance\u2019s official Twitter account ad received 55,000 clicks in the first quarter of the 2022 Super Bowl. \u201cWe then pushed it to a number of communities on Reddit and from there, it went viral,\u201d explained Hillman. Even more impressive, Hillman remarked that Binance spent a tenth of what the company\u2019s peers did on Super Bowl advertisements. <\/p>\n

What\u2019s next for crypto advertisers? <\/h2>\n

While crypto companies are ramping up their advertising efforts, it\u2019s important to point out that other forms of marketing are also on the horizon. Although the 2022 Super Bowl demonstrated the impact of cryptocurrency-focused commercials, billboards advocating for crypto, Web3 and NFTs are also being seen more widely.<\/p>\n

For example, Christian Hasker, chief marketing officer at Hedera Hashgraph \u2014 a layer-1 distributed ledger technology platform \u2014 told Cointelegraph that the company is advertising on billboards and using online video ads to cater to prospective Web 3 developers. \u201cWe recently ran billboard ads at Denver Airport for EthDenver. The ad campaign was well received and the return on investment exceeded our expectations,\u201d said Hasker. In turn, Hasker mentioned that Hedera will build upon this momentum at other upcoming blockchain events.<\/p>\n

Hedera Hashgraph EthDenver billboard. Source: Hedera Hashgraph<\/em><\/figcaption><\/figure>\n

NFT-related billboards are also becoming more common. Most recently, SaveArtSpace \u2014 a nonprofit art patronage organization \u2014 helped Nadya Tolokonnikova, a conceptual artist and member of the Russian punk-rock collective Pussy Riot, display NFT artwork across the United States. Tolokonnikova selected 10 artworks to be exhibited on billboard ad spaces in New York, California, Tennessee, Nevada, Missouri, Arizona, Georgia, Louisiana and Alabama. <\/p>\n

Michele Pred, Equal Pay billboard Located at Sunset Blvd & N Normandie Ave, in Los Angeles. Source: SaveArtSpace<\/em><\/figcaption><\/figure>\n

Travis Rix, co-founder of SaveArtSpace, told Cointelegraph that Tolokonnikova\u2019s exhibition aims to challenge the mainstream ideas that are currently held. \u201cWomen make less than men for the same work in addition to all the other issues women face. We aim to challenge the viewer to change or force for change,\u201d explained Rix. He added that SaveArtSpace has new billboard exhibitions just about every month: <\/p>\n

\u201cIt\u2018s very effective, even if people only see one of our billboards for a second, it may stick with them all day. And, if they pass these every day for a month, it may change the way people think.\u201d<\/p><\/blockquote>\n

Regardless of a company\u2019s advertising choice, DiMassimo warned that crypto organizations that are new to the ad space must have a clear strategy in mind. \u201cMoney can be soaked up fast if you are unsure of what you are doing in the ad world. This is still a new and volatile space, and it will be turbulent for advertisers that can\u2019t afford to sustain strategies.\u201d <\/p>\n<\/div>\n