Crypto ad spending sharply declines from beginning of 2022
Yahoo Finance Live anchors Dave Briggs and Seana Smith discuss how crypto ad spending is down significantly from earlier this year and what's driving it.
Video Transcript
SEANA SMITH: Well, the crypto crash has more than investor money disappearing. It turns out that TV ads that were once very popular are now missing from the airwaves. According to a report from ispot.tv, as the price of Bitcoin has plunged, marketing from big names, including Coinbase and FTX, have been slowing down. And Matt Damon's Crypto.com Super Bowl ad hasn't aired since February. And that campaign cost nearly $65 million.
But in the month of July, total spending from major firms was at just around $36,000, the lowest monthly total since January of 2021, far below the $84 million spent in February around the Super Bowl. Earlier this month, Coinbase is saying in its earnings release that it will be scaling back paid media. Dave, I mean, it makes a heck of a lot of sense. We were just talking about the crypto winter. We've been talking about the crypto winter. These companies don't have a heck a lot of extra cash at this point to be throwing into advertising.
DAVE BRIGGS: Yeah, it's both the obvious that their value has been cut 50% largely-- well, Bitcoin is down 50% since the Super Bowl, and that was called the Bitcoin bull by many-- but it's also the less obvious, that these brands tend to spend around the biggest sports season of the year, which is, of course, NFL season, which is just getting underway in early September. So will they begin to return to the airwaves a bit in September when 12 to 20 million people are watching average NFL game? You would certainly expect that.
Tom Brady, for one, has not necessarily run away from his partnership with FTX. He is still tweeting about it. It is still everywhere on his social media accounts. And if you go to the FTC's website, you will see nothing but celebrities and high profile athletes. The question is, once these ads return-- which at some point they have to if they want to reach a wider audience than the hardcore crypto bros-- is, will the messaging change?
SEANA SMITH: Yeah.
DAVE BRIGGS: Will that "fortune favors the brave" type of message that Matt Damon had on that campaign, will it change to something else to how you weather the storm and a recession or something like that, one would assume.
SEANA SMITH: Yeah, certainly, and we would-- yeah, one would assume. And I would think so, but you never know.
