Mobile app ecosystem service Sensor Tower reported that in the first half of the year, advertising spending by companies such as Coinbase, Gemini Trust, FTX Trading almost stopped.
After a surge in sponsorship contracts in late 2021 and early 2022 for a number of crypto companies, there has been a significant decline in interest and reduction in advertising budgets. Sensor Tower analyst Dennis Yeh noted that it was macroeconomic uncertainty that was the main driver of the grim change.
Crypto.com’s spending fell from $40 million in January in preparation for the Super Bowl to $2.1 million in May, and Gemini’s from $3.8 million to less than $0.5. Coinbase has suspended ad spending after its $31 million “floating QR code” commercial brought the site down with an influx of users. And in June, Coinbase announced it was suspending recruitment and cutting staff by 18%.
“Currently, restoring consumer confidence is the most important factor in the existence of the crypto industry. To rehabilitate the image of the stability of investment in crypto assets, a combination of advertising and other types of communication is required. However, when the price of an asset is too low, engagement and new customers tend to be low, too,” said Andrew Frank, vice president and senior analyst at research firm Gartner.
U.S. Regulatory Commissioner Hester Peirce warned the cryptocurrency community that a bearish trend in the cryptocurrency market would be good for the industry, but be aware of the increase in scammers “in these turbulent times.”
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