5 Effective Campaigns for Attracting Crypto Users Revealed

Discover the Most Effective Campaigns for Attracting Crypto Users

Recent data reveals that decentralized finance (DeFi) and centralized finance (CeFi) campaigns have proven significantly more effective at converting new users compared to crypto gaming and gambling campaigns, which are the most expensive in the industry.

Understanding the Impact of Crypto Gaming and Gambling Ads

The recent report highlighting that crypto gaming and gambling ads are the most expensive for onboarding users brings crucial insights into the evolving landscape of the cryptocurrency market. Historically, the crypto sector has experienced fluctuating user engagement, especially during bull and bear markets. As various trends emerged, the need for effective campaigns for attracting crypto users has become paramount. Recent data from the Web3 marketing firm Addressable reveals that while these campaigns lead to high costs, they struggle to convert new users effectively. The report shows a median cost per wallet (CPW) of $8.74 for these sectors, compared to a more reasonable $2.79 for decentralized finance (DeFi) and centralized finance (CeFi) initiatives.

As competition intensifies and market sentiments shift, the disparity between the effective campaigns for attracting crypto users becomes more pronounced. Asaf Nadler, Addressable co-founder, notes that while gaming and gambling efforts are steep in cost, they do not yield substantial user engagement. In a previous era, the rise of platforms like Axie Infinity showcased the potential for attracting significant user bases, yet the current landscape demands innovative strategies as market conditions evolve.

Understanding the Cost of Effective Campaigns for Attracting Crypto Users

Recent data reveals that when it comes to effective campaigns for attracting crypto users, crypto gaming and gambling ads rank among the most expensive. According to marketing insights from the firm Addressable, these campaigns have a median cost per wallet (CPW) of $8.74, with a lower quartile of $3.40, making them the highest-cost sector in the crypto landscape. “Gaming and gambling campaigns are the most expensive,” stated Asaf Nadler, co-founder of Addressable, highlighting the need for businesses to reassess their strategies.

The High Cost of Engagement

Nadler’s insights indicate that users with existing crypto wallets are more likely to convert to crypto products. The report analyzed 200 programmatic campaigns targeting an estimated 9.5 million users globally. It revealed that during bullish periods in 2024, the CPW soared across different regions, increasing by four times in the US and 27 times in Western Europe between Q1 and Q3. This suggests that costs skyrocket during market downturns, making effective campaigns for attracting crypto users challenging.

Comparative Analysis of Campaign Costs

In contrast, decentralized finance (DeFi) and centralized finance (CeFi) campaigns demonstrate much greater cost-efficiency, boasting a median CPW of only $2.79 and a lower quartile of $0.10. Nadler observed that during bearish market phases, the ability to attract users becomes significantly more expensive, warning that while premium markets appear lucrative, they can turn costly quickly.

Gaming and gambling campaigns: Median CPW $8.74
DeFi/CeFi campaigns: Median CPW $2.79
Increase in CPW: 4x in the US, 27x in Western Europe in 2024

Emerging markets, particularly in Latin America and Eastern Europe, typically offer lower CPW under favorable conditions but are susceptible to extreme volatility, further complicating the landscape for effective campaigns for attracting crypto users.

Analysis of High Costs in Crypto Gaming and Gambling Ads

The recent findings reveal a critical insight into the shifting dynamics of user acquisition in the crypto industry. Crypto gaming and gambling campaigns are currently the most expensive means of onboarding users, with a median cost per wallet (CPW) of $8.74, overshadowing more effective campaigns for attracting crypto users such as DeFi and CeFi, which average a CPW of just $2.79. This disparity suggests that while gaming and gambling offer enticing engagement opportunities, their high churn rates and intense competition may render them less efficient for long-term user retention and conversion.

Moreover, the fluctuating costs tied to market conditions indicate that marketers should be strategic in their approach, opting for testing and innovative product development during high CPW phases, as highlighted by industry experts. As the market matures, advertisers need to refine their tactics to focus on cost-effective channels that promise better returns, ultimately reshaping how companies pursue and manage their user acquisition strategies in the competitive crypto landscape.