Cryptocurrencies Prove They Are Mainstream Now By Entering Super Bowl Ads
The fact that this year's Super Bowl is being dubbed the Crypto Bowl by media outlets says it all. It is the first time cryptocurrency firms have launched their products on the world's largest advertising stage. A slew of cryptocurrency firms have purchased slots, but the details are being kept under wraps. Crypto.com, which has starred in commercials with Matt Damon, has a spot, as does cryptocurrency exchange FTX, which is rumored to be giving away Bitcoin during the slot.
Binance isn't running an ad during the game, but it is launching a campaign surrounding it, warning potential purchasers not to heed financial advice from big-name celebrities who frequently appear in crypto advertising. The main themes here, provided ironically by famous face and NBA great Jimmy Butler, are "trust yourself" and "do your research." Even businesses that aren't directly involved in the area are incorporating blockchain technology into their marketing efforts. Budweiser, for example, has announced that during the game, it will conduct an online NFT tournament, and Bud Light's first zero-carb beverage will kick off its promotion with an NFT collection.
Big Names And Creativity On The Crypto Ads
The ads ranged from one depicting an older LeBron James seeing his younger self to another depicting comedian Larry David missing out on every important discovery throughout history and, of course, resisting crypto as well. The one that drew the most attention had a QR code floating across the screen for 60 seconds as background music played. Many individuals were perplexed, but many others used their phones to scan the codes on their screens.
They were directed to an ad offering $15 in free Bitcoin in exchange for signing up for Coinbase, a cryptocurrency exchange where people can purchase and sell the virtual currency. However, due to the large increase in traffic, the site collapsed, causing a social media frenzy.
The crypto companies were far from the only companies to pay millions of dollars for a few seconds of airtime at America's biggest advertising event. However, the sheer volume of cryptocurrency-related advertisements throughout the game was striking, indicating an attempt to raise mainstream awareness of a fast-growing but little understood business. Aside from the commercials, crypto is still a hot topic at the Super Bowl, with Canadian artist Drake betting $1.3 million in Bitcoin on the Los Angeles Rams.
The crypto sector has seen a surge in investor cash over the previous two years. The prices of popular digital currencies such as bitcoin and ether have steadily increased, though they have slowed in recent months. As a result, crypto has evolved from an obscure digital hobby for "tech bros" into a more well-known cultural force, attracting both the wealthy and typical retail investors.
With Super Bowl, Crypto Enters America’s Biggest Advertisement Event
Crypto's appearance at one of the year's defining television events, in the views of crypto company executives and strong believers, was a wonderful opportunity to clear up confusion about what some see as the global economy's future. Brands are in a virtual arms race for new consumers, market share, and cultural oxygen in the crowded and competitive crypto industry. Anindya Ghose, a professor at New York University’s Stern School of Business said:
“These brands are all trying to get in front of a mass audience, and this is a captive audience. It’s not a question of whether crypto is here to stay, but which one of these companies will survive.”
Ghose has specialized in marketing and technology. Hundreds of millions of dollars have been invested in crypto as a result of major initiatives. According to a study conducted by Grayscale Investments, more than half (55%) of investors who now own Bitcoin did so within the previous year. According to Pew Research Center research, 16% of Americans have invested in, traded, or used cryptocurrencies like Bitcoin and Ethereum. Michael Sonnenshein, CEO of Grayscale Investments said, “More investors see long-term value in adding Bitcoin and digital currencies to their investment portfolios.”
Know that Super Bowl commercials are among the most sought-after spots on network television. According to NBC, a 30-second Super Bowl commercial went for $6.5 million this year. Commercials on CBS averaged $5.6 million last year. Coming back to the Coinbase advertisement, in the first minute after the odd advertisement went up, the site received 20 million hits on its landing page. Coinbase experienced "more traffic than we've ever seen," necessitating a "traffic throttling" for a few minutes, according to Chief Product Officer Surojit Chatterjee. Coinbase tweeted separately, "We're back up and ready for you."
Crypto Ads Regulations
Another reason why crypto firms may be flooding the airwaves and filling billboards is that web advertising, another mass media with enormous reach, has proven more difficult to tap into. Following a slew of cryptocurrency frauds involving initial coin offers, Google, Facebook, and Twitter all banned crypto marketing in 2018. Last year, those limits were somewhat lifted, but the rules in place still make it tough for some businesses to promote.
With a few exceptions, most marketers need prior written authorization under Facebook's crypto ad policy. Some cryptocurrency exchanges and wallets are now allowed to advertise on Google. However, Google's policies were reinforced to require FinCEN or chartered bank registration, and ads for DeFi protocols or specific coins are still not allowed.
Because of the nature of its product, Meera Iyer, senior vice president of marketing at Exodus, a crypto wallet provider, said in an interview that the company is still not authorized to advertise, so it has had to rely on organic growth instead. Iyer also expressed her hope that big IT corporations and other advertising media will learn to distinguish between legitimate cryptocurrency businesses and crooks.
Meanwhile, with money pouring into the sector — Andreessen Horowitz is reportedly launching a $4.5 billion crypto fund, and FTX is launching a $2 billion corporate venture fund — it appears that companies looking to cash in on the trend will continue to place advertisements wherever they can.