While the entire crypto industry is suffering from a prolonged bear market, the crypto marketing industry has also been hit hard. The crypto advertising budget in America has dropped from $85 million to $36,000.
Just a few months ago, crypto ads were ubiquitous. From Time Square to the London Underground to major sporting events like the NFL and Football leagues, cryptocurrency ads were more prominent than ever before. Celebrities such as Matt Damon, LeBron James, Tom Brady and Snoop Dogg also became common faces in these commercials.
Crypto Advertising Budgets Shrink
The global financial market crisis and the ongoing bear market have resulted in a drastic reduction in investment in this type of advertising. Big companies like Coinbase, FTX, and Crypto.com have seen their marketing budgets cut significantly over the past few months, according to recent data.
During the Super Bowl in February of this year, the crypto industry in the US spent more than $84.5 million on marketing and advertising. In June, that number dropped to 3 million. Last month, however, total spending on crypto ads in the US was just $36,000, the lowest since January 2021.
According to marketing experts, crypto companies should not expect consistent returns from the advertising market. Investments and returns from crypto ads are moving in direct proportion to larger markets.
According to experts, when prices in the market drop and illegal activities such as fraud and hacking increase in this space, users become hesitant to invest, ultimately reducing the potential returns from their marketing investments. For investment and returns to rise again in this area, liquidation on popular exchanges must decrease significantly.
It’s unclear when crypto ads will return to their fabulous levels again. However, we may not see such massive spending on cryptocurrency marketing for a while, unless investment and trade rise to these levels again.
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