Several crypto firms have been cutting back on their marketing spending, months after spending big on several ad campaigns and Super Bowl ads, The Wall Street Journal reported Monday (June 20).
The report noted that there’s been the receding of the industry’s big ad blitz, which included appearances by celebrities like Matt Damon and deals that would put big names on arenas in cities like Miami and Los Angeles.
This comes as there’s been a big downturn in crypto markets, which has seen a near-$2 trillion wipeout in the value. That has also brought more scrutiny from regulators on some of the biggest marketing practices.
Stablecoins have not been doing so well, either, as marked by the collapse of Luna and TerraUSD — even as those had been perceived as less volatile as other cryptocurrencies.
The shift away from the Super Bowl ads and other large-scale campaigns has seen both advertisement sellers and agencies looking more critically at whether crypto is going to be the big moneymaker they’ve thought it would be. Crypto backers have also been seeing a debate on how to get back the momentum with customers.
Last November, bitcoin’s value hit $68,991, and ad spending has fallen 90% for the digital platforms including Facebook, YouTube and Hulu, according to research from Sensor Tower, a market research firm.
Dennis Yeh, an analyst with Sensor Tower, said a big part of it is the low confidence in the macroeconomics.
“Plus, when the price of bitcoin is low, engagement on the apps, and new customers, tend to be low,” he said, per the report.
PYMNTS wrote that even big crypto supporters have been exiting the market with the current volatility, including long-term owners now getting out of the market.
Related: Long-Haul Holders of Crypto Are Starting to Sell
The spent output profit ratio, looking at the profit realized for the market activities for digital currencies on a given day, was at its lowest level in a year on Sunday (June 19).
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