In a bid to poach customers from other industries and major retail giants in the digital currency world, crypto service providers have decided to rely on expensive Super Bowl advertisements. According to a new report from FinancialTimesthese ads were just a financial burden and failed to drive traffic in the expected direction.
Super Bowl ads failed to attract audiences
“Fortune smiles on the brave,” said the ad sponsored by major cryptocurrency exchange, Crypto.com, which made waves last year after hitting a very expensive business to secure Staples Center naming rights for the next 20 years. The Super Bowl ad featured basketball’s LeBron James advising a computer-generated teenage version of himself, saying, “If you want to make history, you have to decide for yourself.”
Two months after the Super Bowl announcements, cryptocurrency trading volume continues to decline and it appears that the Ukraine war-related hike in interest rates has weighed on investors.
“We haven’t seen a massive influx of retail investors into crypto after the Super Bowl ads,” said Noelle Acheson, head of market intelligence at Genesis Trading, a New York-based digital asset broker. York. “Volumes are low due to huge uncertainty in the markets.”
According to data from LeBlockCrypto, trading volume on crypto exchanges continued to rise, nearly tripling its value between December 2020 and January 2021, reaching $923 billion. On the other hand, volume crossed $1 trillion in February and hit an all-time high of $2.23 trillion in May 2021. At the time of the Super Bowl announcement, volume remained bearish, and it Seems spending money on these ads hasn’t proven to be beneficial for exchanges.
The FT report concluded that if digital currencies become the subject of advertisements like cars and beers, the average mind is unable to understand crypto investing.