The Biggest Crisis Facing the Advertising Industry Right Now

The Biggest Crisis Facing the Advertising Industry Right Now

For a moment, don't anticipate seeing many cryptocurrency advertisements. The businesses that support them are cutting expenses anywhere they can, including advertising.

They are doing everything they can to withstand a storm that has been brewing since the fall. The market value of cryptocurrencies has fallen from $3 trillion to around $900 billion since November, and analysts believe the collapse will continue.

Expect a rush by investors to sell their cryptocurrency holdings at a time when there may not be many interested parties. The real kicker is that as investors in cryptocurrencies become increasingly alarmed, they pour more of those currencies onto the market, creating an oversupply with weak demand. Unfavorable news for any business hoping to fuel investor confidence that cryptocurrency would increase their wealth. This belief has clearly been challenged, and with it, the way crypto executives see the world.

A more cautious, survivalist mindset has twisted from the high growth, short-term perspective that many of them had over the previous two years. In a market where the value has fallen as much as crypto, businesses are slashing costs. Ad spending is among the first to disappear, as usual.

According to Zachary Greene, founder, and CEO of the cryptocurrency investing and financial website, "I can tell you the amount those companies spend has decreased on average approximately 70% in the previous few months." "We've had to cease all of our ongoing marketing ourselves, as well as temporarily lay off some team members and reduce hours of others in the previous month due to the loss in ad revenue and other revenue due to the downturn."

Crypto companies must adapt quickly to life. They had only recently started spending millions of dollars on Super Bowl advertisements. These days, they hardly do any advertisements. According to data recorded by digital ad analytics firm Pathmatics, digital ad expenditure for the ten bitcoin marketers has decreased by over 90% since November. Even worse, nobody is certain of the timing of those dollars' recovery. place more emphasis on when than if.

Of course, there are many who firmly hold this ideology and think that virtual currencies will never fade away. However, those were never the ones who crypto advertisers actually tried to reach. Instead, they were searching for fresh capital attracted to the industry by FOMO. This dread is much less common than it has ever been. Remorse for becoming involved as much as they did has replaced it. Chasing after new investors, who are more cautious than ever, is the last thing cryptocurrency marketers are considering.

Bottom line: Crypto firms are utilizing this period to strengthen their long-term strategy. Since volatility is expected in this market, and although this stormy phase is more severe as a result of a chaotic economy, industry watchers are confident that it will eventually recover — just as it has done countless times before. Investors and commercial brands will be quick to get back in whenever this moment occurs. Cryptocurrency marketers will want to be in a position to take advantage of that enthusiasm in order to boost their own businesses.

According to Michael Gaizutis, the founder and chief experience officer of RNO1, an experience design agency in tech, e-commerce, and Web3, "in the short term, advertising executives are having to re-think their media plans, but it enables for fresh conversations and tactics across the board." From cryptocurrency to digital assets to upcoming metaverses, "digital currencies and digital ecosystems are here to stay. Those who accept this now will reap enormous benefits down the road.

Back to blog

Leave a comment