DeFi Advertising in 2024 – Overcoming Challenges and Finding Opportunities

Advertising for DeFi is complex, governed by stringent regulations and policies across different platforms and markets. You may feel disheartened with the constant account suspensions and policy violations, but there are options to scale your reach through advertising for the DeFi space. In this article we will explore the current landscape of DeFi advertising, highlighting platform-specific rules and the latest opportunities to reach audiences of DeFi projects while staying compliant with regulations.

Big Tech doesn’t make it easy, here is a run down of the big players in the ad space and their current rules on advertising DeFi.

Google and YouTube

Google allows advertisements for cryptocurrency exchanges and wallets, but with strict requirements. Advertisers must be registered with the Financial Crimes Enforcement Network (FinCEN) as a money services business or with a similar entity in their jurisdiction. Additionally, they must comply with local legal requirements and Google’s certification process. YouTube follows the same guidelines as Google, ensuring consistency across both platforms.

Ads for initial coin offerings (ICOs), DeFi trading protocols, or otherwise promoting the purchase, sale, or trade of cryptocurrencies are not allowed.

Crypto Advertising on Meta (Facebook)

Facebook has a selective approach to cryptocurrency advertising. Initially, the platform banned all crypto-related ads but has since relaxed its policies. Advertisers can promote certain crypto products after undergoing a thorough eligibility verification process. This includes providing information about the business and obtaining necessary licenses.

Crypto Advertising on TikTok

TikTok maintains a strict ban on all cryptocurrency advertisements. This decision is driven by the platform’s effort to protect users from potential scams and fraudulent schemes often associated with the crypto market. As a result, advertisers seeking to promote crypto-related products must look for alternative platforms.

Crypto Advertising on X (Twitter)

Twitter permits cryptocurrency ads under similar restrictions as other platforms listed here. The platform prohibits ads for ICOs, token sales, and cryptocurrency wallet services. Cryptocurrency exchanges and wallet services ads are allowed only for public companies listed on certain major stock exchanges, subject to pre-approval. In Japan, cryptocurrency-related ads are permitted for companies regulated by the Financial Services Agency.

Crypto Advertising on LinkedIn

LinkedIn allows limited cryptocurrency advertising. Ads related to ICOs and token sales are not permitted. Advertisers must adhere to all applicable legal requirements and avoid promoting misleading or deceptive content. Financial products and services must be clearly defined, and ads should comply with LinkedIn’s advertising policies to ensure transparency and accuracy.

Crypto Advertising on Reddit

Reddit permits cryptocurrency advertising with certain restrictions. The platform bans ads related to ICOs, token sales, and binary options. Ads for cryptocurrency exchanges and wallets must be pre-approved and comply with legal requirements. Advertisers are required to provide clear and accurate information and avoid engaging in misleading or deceptive practices.

Crypto Advertising on Snapchat

Snapchat allows cryptocurrency advertising under strict conditions. Advertisers need prior approval to run cryptocurrency ads, which must not promote ICOs or cryptocurrency sales. All ads must adhere to Snapchat’s Advertising Policies, ensuring they do not mislead or deceive users and comply with applicable legal requirements.

Crypto Advertising on Bing

Bing Ads allows cryptocurrency advertising with restrictions. Ads promoting cryptocurrency trading or products must be pre-approved. The platform generally prohibits ads related to ICOs or specific cryptocurrency financial products. Advertisers must comply with legal requirements and Bing’s Advertising Policies, ensuring transparency and honesty in their ads. Bing’s crypto advertising application can be filled out here.

What Are Your Options?

Do not despair. The regulatory environment for cryptocurrency advertising is constantly evolving. Governments and regulatory bodies worldwide are updating their guidelines to address the unique challenges posed by the crypto market. On these platforms, we recommend staying informed about these rule changes and being ready.

There is a new wave of advertising platforms and networks that are catered to the DeFi space. The scale of these networks are growing rapidly and targeting more sophisticated allowing you to precisely reach new web3 users based where they are, what they are doing and also their wallet address.

Through programmatic advertising, it is possible to reach users across many 1000s of publications and dapps using both your 1st party data and 3rd party behavioural signals.

Publishers & Dapps

Would you like to get traffic from users browsing CoinGecko? Or maybe you would like your token to appear on Crypto Bubbles? CoinGecko, Crypto Bubbles and 1000s of other web3 publishers and apps sells their ad placements to the highest bidder. This inventory is accessible through programmatic advertising networks. We have the options to set detailed targeting parameters using geographic targeting to reach users in specific locations, demographic targeting for age, gender, and interest targeting based on browsing history. Wouldn’t it be nice if you could target web3 users who are high volume traders only? We now also have options to incorporate wallets into targeting on these networks and can upload wallets with certain characteristics to target them as well as users who behave like them. Programmatic advertising through web3 networks creates huge opportunities for Defi projects to reach their audiences at a far lower cost than buying editorial placements, averaging at between 1 – 3$ per visitor.

Key Steps

Understanding Programmatic Advertising

Programmatic advertising involves using automated systems to buy ad impressions in real-time. This contrasts with traditional methods where ad placements are negotiated manually. Programmatic platforms use data analytics and algorithms to purchase ad space on websites, apps, and social media platforms, ensuring that ads are shown to the most relevant audiences based on their behaviour, interests, and demographics. Although programmatic advertising can be effective using network signals alone, the performance of your campaigns will be greatly improved when incorporating 1st party data such as wallet address, website engagement and other user actions that support programmatic algorithms in improving audience targeting.

1. Selecting the Right Programmatic Platforms

Choosing the right programmatic platforms is crucial. There are a number of web3 programmatic platforms such as Slise, Bitmedia, Hypelabs and Coinzilla. These platforms offer access to of different publishers and dapps with their own targeting algorithms. When selecting a platform, consider its reach, targeting capabilities, data integration, and reporting tools. At Coldchain, we work across all of these platforms and would activate campaigns aligned with your marketing and advertising goals.

2. Defining Your Target Audience

Effective targeting begins with a clear understanding of your audience and what action you want them to take. Use data from your customer profiles, website analytics, and CRM systems to define key demographics, behaviours, and interests. Segment your audience into distinct groups based on these characteristics. For example, if you’re marketing a new DEX and want to generate awareness, you might target young, tech-savvy individuals who have previously shown interest a CEX.

3. Creating Compelling Ad Content

It will come as no surprise that you message and creative matters. Ad content should be tailored to resonate with your target audience segments. Develop engaging visuals and compelling copy that address the needs and interests of each segment. A user who already knows your project should receive a different message than those who don’t. Web3 ad networks do not have some of the creative features as their web2 counterparts such as the use dynamic creative and copy. Therefore it is critical that all campaigns are run with multiple A/B tests to refine your message and creative for impact.

4. Setting Up Targeting Parameters

Focus on younger audiences, particularly those between 18-35 years old, as they are more likely to be early adopters of technology. Although the Web3 space is predominantly male, targeting female audiences ensures you do not miss out on a growing segment. Additionally, targeting individuals with higher disposable incomes can be effective, as they are more likely to invest in cryptocurrencies and participate in NFT markets.

Geographic targeting helps focus on regions with high Web3 adoption rates. Target countries like the United States, Canada, the United Kingdom, Germany, Singapore, Japan, South Korea, and Australia, where interest and adoption of Web3 technologies are significant. Within these countries, consider focusing on major urban centers known for tech innovation, such as San Francisco, New York, London, Berlin, Singapore, Seoul, and Tokyo.

Interest-based targeting allows you to reach users based on their demonstrated interests. Target users interested in specific cryptocurrencies like Bitcoin, Ethereum, Solana, and emerging altcoins. These interest-based parameters help ensure your ads are seen by the most relevant audiences.

Custom and lookalike audiences can significantly enhance targeting precision. Create custom audiences based on your existing customer data, including email lists of users who have signed up for your project, website visitors, or app users and their wallet addresses. Use these custom audiences to generate lookalike audiences, targeting users who share similar characteristics and behaviours with your existing users. This approach helps in reaching potential new users who are likely to be interested in your project.

Time-based targeting ensures your ads appear when your audience is most active. Analyse when your audience is most active and schedule your ads to run during these peak times. For example, evenings and weekends might see higher engagement rates. Additionally, consider the days of the week when your audience might be more engaged, such as weekends when users have more free time to explore and engage with crypto content.

Retargeting helps you reach users who have already interacted with your project. Retarget users who have visited your website but did not convert. Additionally, retarget users who have previously converted, but have lapsed with appropriate messaging. This strategy helps in nurturing potential users and encouraging repeat engagement.

5. Measuring Impact

Continuous monitoring and optimisation are key to successful programmatic advertising. Use the analytics tools provided by programmatic platforms to track the performance of your ads. Monitor key metrics such as click-through rates (CTR), conversion rates, and cost per acquisition (CPA). Identify which segments and ad creatives are performing well and which need adjustments. Use A/B testing data to experiment with different ad variations and optimise for better results.

Conclusion

Advertising for DeFi projects is challenging due to stringent regulations and platform-specific policies on major ad networks. Google, YouTube, Facebook, and others impose strict requirements or outright bans on cryptocurrency advertisements, limiting the visibility of DeFi projects. These constraints necessitate alternative strategies for reaching target audiences.

Despite these challenges, specialised Web3 advertising platforms such as Slise, Bitmedia, Hypelabs, and Coinzilla offer significant opportunities. These platforms cater specifically to the Web3 space, providing precise targeting capabilities. By leveraging programmatic advertising, DeFi projects can place ads across thousands of publications and dApps.

Understanding programmatic advertising is key. Automated systems buy ad impressions in real-time, ensuring ads reach relevant audiences based on behaviour, interests, and demographics. Incorporating data like wallet addresses and website engagement can improve campaign performance. Selecting the right platforms, defining target audience segments, and creating compelling ad content are essential for maximising impact.

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