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You’ve probably heard that before last year’s crypto winter arrived, crypto giants like Crypto.com, Tezos, Binance, or the now-bankrupt FTX had massive PR campaigns. Sho. This trend will persist throughout the upcoming bull market.
While industry giants are aggressively pursuing expensive mass marketing campaigns, smaller companies with smaller budgets are forced to settle for category ads of questionable quality. Both approaches are ineffective due to large educational disparities and lack of uniqueness. This leaves large companies with far less recognition and limits the ability of smaller companies to remain creative. Unless this issue is resolved, there will be no escape from the slippery slope that is plunging crypto marketing professionals into a brand communication crisis.
In 2021, Crypto.com partnered with Matt Damon, who later explained that this “move” was necessary to gain financial support for the non-profit Water.org initiative. That same year, the company signed his $700 million naming deal with the owners and operators of Staples Center, now widely known as the Crypto.com Arena.
Over the past few years, many healthy sponsorships have also reached my ears through top media announcements. Tezos previously signed a multi-tier sponsorship deal with F1 world champion Red Bull at the end of 2021. In the same year, the now bankrupt FTX teamed up with the Mercedes-AMG Petronas F1 team. In the summer of 2022, the largest exchange, Binance, tapped TikTok superstar Kirby Lame to educate about cryptocurrencies and Web3. Some time ago, they launched an NFT collection with Cristiano Ronaldo (who later faced a lawsuit over Binance ads). I am not referring to Lindsay Lohan’s promotional tweets about crypto assets that she posted without disclosing that she received compensation. Or Akon (the “bash that guy” guy) who promotes TRX on social media and was recently indicted by the SEC for violating federal securities laws.
Simply put, crypto giants are surprising the world with the money they are willing to spend on high-level celebrities, whether it’s sponsorships, famous endorsements, long-term partnerships, or one-off deals.
“I consider my followers to be family and am always looking for new challenges and interesting content to share with them.” — said Khaby of the social media sensation in a press release about the collaboration with Binance. I am. The initial idea of educating through influencers seems great, but it’s hard to imagine it becoming a family of people who play basketball with Snoop Dogg or shoot fun videos with Robert Downey Jr. .
In marketing terms, the crypto giant is betting on mass marketing, thereby seeking to communicate with a wider audience. Such communications are aimed at working with people who are not currently looking for a way to start using cryptocurrencies, but when they are ready, they will remember the brand and choose it over other brands. Probably. However, this scenario is only possible if the company has distinctive brand equity. Unfortunately, that’s not something cryptocurrency businesses consider. Most brands in the same niche look pretty much the same. Unless it’s as distinctive as Coca-Cola (you can remove the name and still recognize it as Coca-Cola), mass marketing campaigns will be ineffective. But most importantly, the educational disparity is so great that the mass audience does not remember or even pay attention to his marketing campaigns.
For obvious reasons, we believe that the crypto giant’s mass marketing efforts fail to capture a broader audience and instead only increase brand awareness among the crypto community that already knows of its existence. I fall into that paradigm. That means that taking on big-ticket initiatives and sponsorship deals at this stage only proves the company’s high status and shows that it has a huge amount of funds.
While cryptocurrency companies struggle to gain recognition through mass marketing, let’s take a look at the deep-seated problems small businesses are left with. Without enough funds to do mass marketing with endorsers like Kirby Lame and Matt Damon, small businesses are limited to their own segment only, and industry voices and proper his STP strategy It’s easy to fall into the trap of generic category ads. , targeting, positioning) to work.
Influencer marketing has become one of the most promising channels with great buying potential. Given that performance channels impose multiple restrictions on promoting cryptocurrencies, it is no surprise that industry players are relying on cryptocurrencies for both user acquisition and brand communication. Some thought leaders in this space happen to be producing high-quality content, but the format itself lacks the creativity to drive brand communication.
Standard collaboration is often limited to creating promotional segments, recording screencasts, putting your logo in the corner and a link in the description. In some cases, if a product is specifically designed for advanced cryptocurrency users, such an approach may not be viable even if competitors act like piranhas fighting for food in a narrow fishbowl. It may prove to be the case. But suppose there is a solution for a wider audience with no or limited knowledge of cryptocurrencies. If so, there’s one reason why. Educational disparities cut off quality channels and opportunities for creative execution, trapping them in a crypto bubble with fiercely competitive rivals and categories. All ads are similar. Add in a lack of uniqueness and a boom in “innovative” startups with “no competitors” and you’ll see things get worse with each future bull market.
Reducing educational inequality would eliminate two marketing problems.
1. Marketing professionals will improve the quality of brand communication within the industry.
Several unfortunate factors have pushed the industry into a brand communication crisis. This is because the cryptocurrency universe lacks opportunities for creative execution compared to other sectors due to educational disparities. Small and medium-sized influencers with a wide and loyal audience and creative talent are crucial in creating creative commercials and disseminating digital assets. However, they are largely out of reach for cryptocurrency startups, mainly due to existing gaps in education and reputation issues that the crypto industry is prone to.
According to Kantar’s advertising profitability research, brand scale and share increases profits by 18.0x, and creative execution by 12.0x. On the other hand, if you choose your target audience accurately, your profitability will only increase by 1.10x. This research shows that without creativity and effective brand communication, small businesses are deprived of the tools to make breakthroughs in user acquisition and retention, let alone drive cryptocurrency adoption. It proves that.
Having more avenues for creative execution gives brands more options to choose from, gives them access to a wider community of listeners, and raises the quality standards for niche industry voices. At the moment, thought leaders in the crypto space are not too worried about competition, as strict advertising policies make launching new crypto channels more complicated. At the same time, there is still a lot of room for improvement in the quality of produced content and price formation.
2. As educational inequality narrows, marketing will have a positive impact on the diffusion of digital assets to the masses.
For a conservative majority threatened by the new, it creates a sense of belonging through much more personalized communication than world-famous celebrities and influencers like Kirby Lame (let alone those from the crypto bubble). It is extremely important to create a safer environment. You can give them.
The average user is more likely to trust lifestyle and travel bloggers, local entrepreneurs, and thought leaders whose social status, income, and way of life are similar to theirs. The lack of channels due to educational disparities limits the ability to popularize cryptocurrencies and make them a mainstream topic. People need to hear about this issue from people they trust and work with. If we can solve the problem of educational disparity, we can build a bridge between a larger audience and the world of cryptocurrencies and encourage faster mass adoption of cryptocurrencies.
As long as there is a gap between the tech-savvy cryptocurrency community and the general audience, the problem will continue to prevail. The industry is developing issues to not only facilitate faster adoption of the technology, but also to provide businesses and marketing professionals with the tools to make cryptocurrencies more visible and less intimidating to a wider audience. efforts should be focused on. The more you invest in your education, the more you will get out of it in the future. The more brands focus on providing quality information to their audiences, the sooner we will all be speaking the same language.
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