Lately, a whole lot of ad money is being pumped into the Super Bowl. Crypto exchanges are evincing enhanced interest in advertising during the game between LA Rams and the Cincinnati Bengals. US crypto exchange Coinbase and Canadian exchange Bitbuy are the big players advertising.
Traditionally, it is cash-rich companies that advertise during the Super Bowl. Crypto has experienced a 2-year long rally. Also, there has been a lot of VC interest via fund infusion in the space. A 30 second air time for an ad on NBC costs upwards of $7 million. Ads by the crypto exchanges are clearly for gaining national visibility.
Crypto – Ad spends
Although new to sports advertising, the crypto industry is already spending more than the traditional spenders. Part of the effort, other than gaining visibility, is to educate people about crypto. There is a lot of confusion and skepticism around crypto. Greater visibility will dispel some of this confusion. FTX and crypto.com are the most active spenders on ads.
FTX has concluded contracts with NBA and MLB. It also paid a whopping $135 million for naming rights of the Miami Heats arena.
Binance is taking a different route. It uses celebrities to educate people on crypto and the associated risks in crypto investing.
As ad spends increase, brands are also rolling out campaigns based on crypto themes. To increase crypto adoption, the NFL, along with the physical ticket, is offering NFTs as memorabilia.
Even tax companies are jumping in. They are running ads that show the volatility of the crypto market.
This increased ad spends by the crypto companies is reminiscent of the ad spends during the dot com bust. This should serve as a warning for the crypto companies to watch out.