When the pandemic hit, crypto was the way out of the crisis for many. Unfortunately, the tide has turned and today the words “crypto crisis” go hand in hand. As geopolitical instability and inflation worsen, the crypto is struggling not to fall lower than it has already. The cryptocurrency’s market value has taken a hit as fear of an impending recession spooks investors.
The crypto crisis has nearly wiped out crypto advertising budgets.
Crypto market crash
Over the past two years, a multi-billion dollar global crypto market has taken hold as novice investors seek out new investment opportunities. But the crypto crisis has pretty much wiped out all the gains they made. The fall in crypto prices has also led to layoffs, hiring freezes, and in some cases the halting of withdrawals to maintain liquidity. One of the biggest reductions has been seen in crypto advertising. As companies scramble to salvage what they can, they’ve cut ad spend dramatically.
Bitcoin has lost almost 70% of its market value from its all-time high of around $69,000 in November 2021. With stocks crashing and inflation rising, the crypto crisis has become acute, showing us that it is linked to the global market. Analysts predict the downturn will continue as crypto trading platforms see slow growth. This has led investors to scramble to find buyers, but panicked investors are no longer buying. Supply exploded, but demand slowed, leaving a lot of unwanted crypto in the hands. Businesses are cutting costs to survive the lean season, and advertising budgets are the first to disappear. Most companies have suspended crypto advertising to get things done. The loss of revenue had repercussions far beyond the show.
Crypto Advertising
According to MediaRadar’s analysis of 200 crypto trading platforms and forex advertisements on TV, magazines, newspapers as well as online channels including websites, podcasts and media channels social media, crypto advertising is going through a sea change. Harrison Jordan, a Canada-based NFT attorney, said Digiday that crypto advertising has taken a huge hit in recent months. He said that as the crypto crisis worsens, brands fear being associated with crypto.
Earlier this year, in February, cryptocurrency advertisers went all out during the Super Bowl. From bringing in mega-celebrities to letting people play with a bouncing QR code, crypto advertisers spent nearly $7 million for every 30-second slot at the sporting event. The ads grabbed eyeballs like no other and also helped foster optimism as the crypto market lost nearly $1 trillion in value in January. But the euphoria didn’t last long.
According to data shared by TV analytics and analytics firm Samba TV, between February 2022 and May 2022, there was a 64% drop in total linear ad impressions on these crypto advertisers. “Crypto advertisers were quick to reign in ad spend as the crypto market bottom fell, clearly showing a correlation between valuation and willingness to lean into advertising,” Dallas Lawrence said. , SVP of Samba TV. Digilab.
Industry experts say crypto trading platforms and startups are using this time to reassess their strategies and find ways to survive this tumultuous time. Although crypto advertising has slowed down, this period allows advertising managers to study and revamp their media plans. This can lead to better conversations and a better understanding of customer needs and how to respond to their requests. There’s no doubt that the future is digital – whether it’s currency or the metaverse – and it’s in everyone’s interest to be prepared. Industry leaders recommend studying the current scenario to prepare for greater rewards in the not-too-distant future.
