How Mass Crypto Adoption Can Occur Without Google or Facebook Ads
Nobody will miss the “Crypto Genius” ads after both Google and Facebook made changes to their advertising networks’ rules, blocking use of their platforms by ICOs and companies promoting cryptocurrency.
That said, there will definitely be ICOs that miss the cheap, highly-targeted traffic that could be delivered by search ads and promoted posts. Plus, adoption of cryptocurrency overall may be negatively impacted.
Here’s a screenshot to show what exactly will be lost after June, when Google’s new policy goes into effect: Underneath a search for “ICO invest” on Google today, I see these advertisements for ICOs and cryptocurrency companies. Ads like these will disappear
ICOs will turn to more niche and less regulated avenues of advertising, such as buying media directly from cryptocurrency publications, distributing their branded content on networks like Taboola or Outbrain, or entering sponsorship arrangements with crypto influencers on YouTube.
In other words, ICO communications will be focused on insider networks. “Fine,” you say, “newcomers to crypto shouldn’t be buying into ICOs anyway; 80 percent of them are scams.”
Fair enough, but discovery of ICOs is closely tied to the growth of Ethereum’s network. This advertising blockade could pose a general problem to all ICOs and cryptocurrency companies; that is, the problem of reaching new users and accelerating adoption of cryptocurrencies and blockchain technology.
For the Ethereum network, new address creation and Google search volume (for the term “ICO”) appear to be tightly correlated. We first published the chart below in the Token Report newsletter, last week.
Seeing how Google and Facebook account for roughly two thirds of all digital ad spend, losing access to those advertising channels is a definite hurdle for ICOs and therefore for the Ethereum network. That is, unless the network is able to find alternative channels to reach prospective token holders, blockchain developers, and cryptocurrency users.
Keep in mind, this possible issue may also be compounded by the inter-dependent structure of the crypto industry. For instance, an ecosystem like Bitshares, EOS or Ethereum has a central currency; a single asset according to which the value of all the associating companies rise and fall.
In such an ecosystem, and ergo the entire ICO and cryptocurrency industry, all parties stand to gain from new consumers entering the market. So, they should all be aligned in wanting effective, reliable marketing channels.
That brings us to some action points…
For the Google and Facebook advertising ban to have no negative effect on crypto adoption; here’s alternative ways the industry can reach new users:
Produce more (and better) crypto content: You don’t need to pay for advertising if your marketing material is so good that people seek it out. Google is not blocking ICOs or cryptocurrencies from appearing in organic search results.
By working with crypto influencers, or on their own accord, ICOs can regain the impressions that would otherwise have been buying by publishing engaging content on platforms such as Steem.it or Twitter, and hosting valuable resources on their own sites.
The resources that are most effective in introducing newcomers to cryptocurrency require little advance knowledge of blockchain technology and its accompanying terms (i.e. “Proof of Work”), and are grounded in social or technical structures that the intended audience already understands. As an example, check how out this Forbes article relates blockchain use in supply chain management to RFID technology.
There are many different low-cost platforms nowadays that allow you to create interactive content such as e-learning courses (complete with exams), podcasts, or even mobile apps specific to your company. The budget that would otherwise have gone to Google and Facebook will now have to go somewhere; if I had to spend it, it’d go to website development.
Organize more (and better) crypto conferences: Talk to anybody who works in B2B marketing, and they’ll agree that there is no substitute for face-to-face interactions with prospective customers. It may seem like there already are a lot of cryptocurrency conferences, but that’s just because you’ve been seeing ads for the same events, over and over.
There actually isn’t that many crypto-related events. A cursory check of Meetup.com shows roughly one crypto- or blockchain-related event for every “Art” related event…and who do you know that likes art? (Kidding.)
The types of events that would be most effective in introducing (and motivating) new adopters of cryptocurrency-based projects, I think, are small (>50 people) social gatherings, such as a dinner, with a question-and-answer format for discussing an ICO, a certain cryptocurrency, or a particular aspect of blockchain technology such as privacy. If the group gets any larger, or the scope of conversation gets any broader, I think that the returns of new adoptees will be diminished.
Blockchain Reserve puts on an event series that I’ve participated in and believe has been effective in bringing new participants to the ICO community. The format of their meetings goes like this: On a bi-monthly schedule, in multiple global locations, moderators host a crowd of people in order to discuss the whitepapers of three upcoming ICOs in an open dialog.
I’ve heard newcomers to the meetings compliment this structure, as it fosters an environment where very knowledgeable stakeholders (i.e. developers) and not-yet-knowledgeable participants ask questions of each other, and so each group learns about the other’s perspectives.
Make headlines with positive news: I think that USA Today or CNN would much rather run “Blockchain-powered non-profit donates 10,000 computers to schools,” instead of “Ripple main net records 15,000 transactions in 1 second.” To become household names and hit the mainstream, ICOs and cryptocurrency companies need relatable stories — and not of Hodlers buying lambos, but something of real social merit.
“Cause marketing” is the practice of aligning your brand with a charitable goal, allowing your customers to contribute to this goal by doing business with you. The term was popularized in 1983 after American Express ran a promotion: for every purchase made with an Amex card, $0.01 was donated to the restoration fund for the Statue of Liberty. The program was a success, for the brand as much as the statue.
ICOs and cryptocurrency companies could run similar promotions (perhaps using the very technology they are built on…), aligning their brands with tangible, critical problems in our world today. Just look at how much press the Pineapple Fund has received, and be jealous:
- ‘Pineapple Fund’ Giving Away $86 Million in Bitcoins to Charity
- Charity giving away $86 million in bitcoin donates $5 million to fight poverty — with cash
- Pineapple Fund: why is an anonymous bitcoin millionaire giving away $86m?
- Pineapple Fund drops $1M on the Sustainable Ocean Alliance and its new accelerator
Making real commitments to philanthropic goals is newsworthy, and whatever time or capital any ICO or cryptocurrency company commits to charity is likely to return as new interest from consumers with whom the charitable cause resonates with.
Build a better Google and Facebook: Perhaps more easily said than done, but this would be the most direct way of “replacing” the exposure made possible through Google and Facebook advertising. People are already pontificating about this, and I’m sure there are multiple parties actively working on it:
Build a better Google and Facebook: Perhaps more easily said than done, but this would be the most direct way of “replacing” the exposure made possible through Google and Facebook advertising. People are already pontificating about this, and I’m sure there are multiple parties actively working on it:
Steem.it, LBRY, Telegram, and Kin are all social media platforms being built using blockchain technology and associated cryptocurrencies. By supporting these platforms, other ICOs and cryptocurrency companies could also be helping themselves.
A platform like Steem.it should be a more effective channel for an ICO to market themselves anyway, since the platform has embedded cryptocurrency elements and the broader community is more crypto-inclined.
The best case scenario for this Google and Facebook advertising ban is if it has a “Streisand Effect,” or, if people become more interested in learning about ICOs and cryptocurrency because the “powers that be” have banned it. Such a reaction may be accelerated if, as part of Google’s ban on crypto ads, they also de-monetize popular crypto YouTubers, forcing them to move to crypto-friendly platforms.
Whether that happens or not, ICOs will have to find a way forward without these traffic sources. If you are planning (or currently having) an ICO and are running into challenges on account of these rule changes, I am interested in hearing your story and would be glad to make recommendations, so feel free to reach out at @KyleSGibson.
Also, if you’d like to keep up-to-date with the ICO and cryptocurrency industry, you should sign up for the Token Report newsletter.
