Cryptocurrency companies cut advertising costs by almost 90%

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Service for creating ecosystemsmobile applications, Sensor Tower reported that in the first half of the year, advertising spending by companies such as Coinbase, Gemini Trust, and FTX Trading almost stopped.

After the surge in sponsorship deals endsIn 2021 and early 2022, a number of crypto companies are experiencing a significant decline in interest and a reduction in advertising budgets. Sensor Tower analyst Dennis Yeh noted that macroeconomic uncertainty was a major factor in the gloomy changes.

Crypto expenses.com dropped from $40 million in January during the run-up to the Super Bowl to $2.1 million in May, while Gemini dropped from $3.8 million to less than $0.5. Coinbase has suspended advertising spending after its $31 million “floating QR code” ad hit the site with an influx of users. And in June, Coinbase announced a hiring freeze and a staff reduction of 18%.

“Currently, restoring trustconsumers is the most important factor in the existence of the crypto industry. To rehabilitate the image of the stability of investments in crypto assets, a combination of advertising and other types of communication is required. However, when the price of an asset is too low, then engagement and the number of new customers tend to be low, too,” said Andrew Frank, vice president and senior analyst at research firm Gartner.

Commissioner of the American regulator Esther PierceHester Peirce warned the cryptocurrency community that a bearish trend in the cryptocurrency market would be good for the industry, but that it was important to be mindful of an increase in scammers "in these turbulent times."

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