Generative AI has been at the center of conversations at Davos and discussions around emerging trends in financial services. However, Bitcoin was also able to gain traction following the SEC's approval of a US-listed spot price ETF. However, this renewed interest in cryptocurrencies was not reflected in the popular crypto ads during America's premier sporting event, the Super Bowl, held earlier this month. Cryptocurrency marketing didn't get much attention, but AI secured a spot among brands vying for attention at one of the biggest marketing events of the year.
Take, for example, Google's ad highlighting new AI-powered accessibility features for the Pixel camera ahead of the game.
Advertisers also went all out with high-profile commercials for other brands such as Hellmann's, Uber Eats, Volkswagen, Verizon, and CeraVe. The event also welcomed a star-studded lineup including Taylor Swift, Elon Musk, and Justin Bieber. Despite numerous celebrity endorsements and cameos, including Ben Affleck's appearance in a series of Dunkin' ads, this approach apparentlyLess is better”, many viewers have a hard time understanding the message being conveyed in the ad.
“This year's Super Bowl was a kitchen sink bowl,” said Jason Harris, president and CEO of agency Mekanism.
Despite a concerted effort to make this year's advertising game bigger and better, the event hasn't garnered as much positive attention as it did two years ago, at the peak of the crypto frenzy. It earned itself the nickname “''.crypto bowl'.
In 2022, Coinbase spent an estimated $13 million on minute slots at the time. The success of this ad even led to the temporary suspension of the cryptocurrency company's app. Similarly, other crypto exchanges such as FTX, CoinGecko, and Crypto.com have also reportedly invested millions of dollars into creating attractive advertising campaigns to attract viewers.
Does this mean viewers missed out? highfalutin Cryptocurrency advertising this year? yes. But does the lack of crypto advertising also mean that the crypto craze is gone? necessarily.
The lower-than-expected lack of excitement and crypto advertising activity is the result of a combination of factors, including inflationary pressures, a prolonged crypto winter, layoffs, and the fallout from the FTX fiasco, resulting in many Companies are going out of business. This year we will recoup advertising campaigns and related costs.
Indeed, inflationary pressures are a common hurdle for both marketers and target audiences during this year's Super Bowl.
The National Retail Federation predicts household spending on the game will reach $86.04 per person, indicating a gradual recovery from pandemic-induced lows in nominal terms. However, when these numbers are adjusted for inflation, they remain significantly lower than pre-pandemic levels and reflect the continued burden of rising costs of living on consumers.
Cryptocurrency exchanges: Legal costs take precedence over marketing budgets
This means that for the second year in a row, there were no crypto ads during the event. Last year, Sam Bankman Fried's FTX secured a 60-second ad slot just before filing for bankruptcy. Bankman Freed was later found guilty on seven counts of fraud, conspiracy and money laundering, with sentencing scheduled for March.
The FTX controversy has since exacerbated regulatory uncertainty for crypto companies and caused legal costs to soar beyond amounts that would have been allocated to other business areas, including marketing.
In addition to resolving regulatory issues, some large crypto exchanges will also prioritize other key factors, such as managing and expanding operations as they grapple with mounting losses.
Coinbase, for example, is embroiled in a lengthy legal battle with the U.S. Securities and Exchange Commission (SEC). The SEC alleged that the exchange violated securities laws by operating as an unregistered exchange and offering unregistered securities products in the form of digital assets. Kraken and Binance found themselves in a similar predicament last year when they were sued by the US SEC. The lawsuit sought to prohibit the business, impose fines, and return illegally obtained profits.
Coinbase also announced plans to expand into the UK last year. According to CEO Brian Armstrong, this decision was driven by the fact that 80% of the global cryptocurrency trading market is outside the United States, providing an opportunity for the company to enter and capture new markets. It is said that Furthermore, a series of losses and regulatory uncertainty surrounding the country's cryptocurrencies likely prompted the company's action.
That said, the cryptocurrency market is showing signs of recovery following Bitcoin's 160% rally at the end of the year, with Coinbase recently posting its first quarterly profit since 2021. However, the lingering effects of Bankman Freed's FTX platform collapse and other key factors in 2022 remain clear and may take longer to abate than expected.
Next year, crypto advertising will regain the prominence it has lost at the annual Super Bowl, as regulations evolve and the crypto market seeks to establish a stronger presence within the broader financial ecosystem. We may find out if they can be brought back, or if their previous appearances were just for show. one hit wonder.
