It’s a well-known fact that advertising directly and positively impacts revenue. However, the challenge lies in selecting the best advertising strategies and networks as a business. For crypto startups, the options are even smaller.
Cryptocurrency solutions have tripled since the beginning of 2021. Over 19,000 crypto projects are currently in the market, competing for the attention of crypto enthusiasts. Venture capital funding has also been on the increase. According to a Galaxy Digital Research report on crypto funding, over $33 billion was raised for blockchain-based projects, and $10 billion has so far been raised this year. Any project that slacks on advertising could be forgotten within a week due to the plethora of offers available.
What challenges do crypto projects face in this competitive climate, and what solution(s) can be employed to mitigate tёhis? Let’s find out!
What are the Challenges of Crypto Advertising?
The advent of the internet has pushed advertising to a whole new frontier. Since the early ‘90s, the advertising industry has grown to a $150 billion industry with an expected 6% Compound Annual Growth Rate (CAGR). The driving forces have been the proliferation of online marketplaces, e-commerce websites, social media platforms, and search engines.
In the past year, crypto-native advertising has picked up, driving more revenue into the flourishing space. Using the same online mediums, crypto advertising can be as bold as a short video or as subtle as a listicle. However, crypto advertising has been faced with a number of challenges:
- The Need for a Vast Number of Users
The crypto space is a fast-growing landscape, and novel projects are launching daily. With the number of projects available, it can be difficult for projects to stamp their brand proposition in the investor’s mind. What is required? A strong and vibrant community, essentially numbers.
While loyal customers are a must-have, having the number to propel the ship is crucial for any project’s success. Relying on in-house advertising may yield some positive return on investment (ROI), but using a professional crypto advertising agency comes with more outreach and generally more revenue.
2. The Need to Manage a Large Community
One of the key attributes savvy investors look out for in a fledgling crypto project is its community strength. In essence, this involves how many people are pumped about the project and its value proposition.
While having numbers may be exhilarating, managing a diverse community is no mean feat. There is a need to answer several questions and keep them engaged with the project’s updates.
Crypto ad networks allow blockchain companies to create marketing campaigns using banner ads
3. Adword and Facebook are Still Cracking Down on Cryptocurrency
Social media platforms have played a huge part in the success of several crypto projects and cryptocurrencies. However, they have not been entirely receptive to the idea of advertising on their platforms. For instance, Google’s Adword and Facebook were previously against any crypto ads on their platforms.
But times have changed. Facebook has taken a u-turn on crypto adverts. However, it remains difficult to run ads on Facebook. Furthermore, it’s even more difficult to achieve the needed traction a crypto ad network like Bitmedia offers.
4. Being at the Mercy of the Token Price
Cryptocurrencies are known to be quite volatile. A token may gain 10% in 24 hours and shed an equal percentage or more in the next 24 hours. This volatility can be a bother for low-cap projects which have not built enough presence or garnered enough market share.
Coupled with the fact that Bitcoin’s performance determines other alternative coins’ growth, this can be a tad difficult for smaller projects.
5. The Need to Engage a Vastly Disparate Community
The crypto space is open-source and decentralised, meaning anyone in any geographical location is free to engage in the nascent industry. A large number of investors are individuals from developing countries whose national currencies are facing a nosedive.
The challenge lies in properly communicating your project’s vision in a language they understand. While the likely option would be to open a Discord channel and get community managers across different countries, this option can be exhausting. Using a crypto advertising company, like Bitmedia, simplifies this process. Projects can use the platform’s vast resources to create ads based on a person’s location, language, nation, interests, and other factors.
This cuts through the unnecessary expenses that may be incurred in getting community managers across different locations.
Bitmedia is an ad network that run crypto banner ads on relevant websites. It’s a media platform is the leading trusted source for crypto and blockchain content, attracting millions of users
6. Ridiculous Influencer Pricing
Influencers have played a huge role in the success of crypto startups. Their promotion of these platforms has helped spread awareness and generate needed platform traction and revenue. The downside to this strategy is the amount a startup will have to fork out in getting an influencer to hype their project to their followers.
According to a report from Coinmarketcap, a self-promoting tweet costs about $25,000, while a retweet will set a project back $20,000. For a ‘package deal’ consisting of two tweets and a retweet, the fee is $35,000. This information was derived from a spreadsheet from American actress Lindsay Lohan.
This does not in any way guarantee the desired result. Pumping this lump sum into a crypto ad with Bitmedia yields a better ROI, as projects can receive better visibility.
A marketing campaign to promote any NFT, Metaverse or DeFi project may involve several major activities, including direct advertising and brand promotion, encouraging user activity, and improving the exchange’s functionality
7. The Need to Fight the FUD
Not everyone is pro-crypto, so projects should be ready to receive hate. FUD stands for Fear, Uncertainty, and Doubt and is a concept that captures the negative remarks crypto critics make about the nascent industry. Hence, projects need to be on their toes to repel these negative narratives that may be spreading.
8. A Lack of Data
Getting concrete data on the number of people attracted from a particular source, say an influencer, can be a nightmare. Bitmedia solves this issue as it offers relevant data that reveals where to optimise ad funds.
9. Too Many Cooks
The advertising space is full of many players, making the landscape so complex. Prior to the internet age, advertisers only worked with agencies that structured content and published ads across media platforms, like the radio, TV, and newspapers. Things have since changed with the presence of digital publishers and ad exchanges. Payment fulfilment and ad fraud vendors have also been in tow.
Bitmedia streamlines this entire food chain and offers a comprehensive advertising solution. Using complex algorithms, the reputable crypto ad network automatically selects the best ad to feature on a website. Additionally, Bitmedia filters bogus impressions through its runtime anti-fraud system.
10. Where’d the Click Come from?
Knowing what clicks drive the most sales and where they come from can be very hard to determine. This is a huge problem traditional advertising platforms have not been able to address properly. Bitmedia allows users to track these clicks directly on their dashboard.
11. Try to Catch Them
Digital advertising thrives on views and clicks. Every click or ad view is charged to the advertiser regardless of whether the click converts. This has given ground for bots, click farms, and other unsavoury practices to thrive.
Bitmedia employs an in-house runtime anti-fraud detection system to fish out these systems. It also measures the quality of impressions customers receive on their websites using four verification steps.
If the system detects a low quality or inappropriate impression, the customer receives a refund in like sum.
The crypto space is still in its infancy. There’s still a long way to go to reach full adoption. A time-tested strategy for advertisers is to employ a professional advertising network’s media and platform reach, especially a crypto-facing one.
To boost your chances of success and reach your target audience, we recommend using the market-leading crypto ad platform, Bitmedia.
Bitmedia is a top Bitcoin ad network that boosts business growth and increases audience acquisition. The platform features adaptable smart banners, display ads, customised targeting, high-end publisher payment, and several others.