Investment in crypto advertising drops to $36,000 from $85 million in the US

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Investment in crypto advertising drops to $36,000 from $85 million in the US

While the entire crypto industry is suffering from a prolonged bear market, the crypto marketing industry is also taking a hit. Just a few months ago, crypto ads were booming across the board. From Times Square to the London Undergrounds and major sporting events like the NFL and football leagues, cryptocurrency advertisements were at an all-time high. Celebrities like Matt Damon, LeBron James, Tom Brady and Snoop Dogg were regular faces in such commercials.

However, the global financial market crisis, as well as the ongoing bear market, have caused investment in these ads to plummet massively. According to recent data, large companies such as CoinbaseFTX and Crypto.com have significantly reduced their marketing budgets over the past few months.

In February of this year, during the annual Super Bowl, the crypto industry in the United States spent over $84.5 million on marketing and advertising. In June, the figure fell to just 3 million. Last month, overall crypto ad spend in the US was just $36,000 – the lowest figure since January 2021.

Will crypto ads take center stage again?

According to marketing experts, crypto companies should not expect consistent returns from the ads market. Crypto advertising investment and returns are directly proportional to the larger market.

When market prices crash and illicit activities such as fraud and piracy increase in this space, users become reluctant to invest, ultimately reducing potential returns from marketing investments. For investments and returns to soar again in this space, the liquidation on popular exchanges must decrease significantly.

It is rather difficult to know when crypto ads will return to their glorious levels. Popular exchange Crypto.com was launching massive campaigns around the world last year, with budgets exceeding $100 million at one point. After the recent drop in cryptocurrency prices, celebrities associated with such ads like Matt Damon has been heavily criticized on social networks. Unless investment and trade in this space increases again to such high levels, we may not see such overwhelming spending on cryptocurrency marketing.

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