Crypto gaming and gambling ads ‘most expensive’ for onboarding users

Crypto gaming and gambling campaigns are the most expensive way to acquire users with existing crypto wallets, ranking highest in cost among all sectors of the crypto industry, recent data shows.

“Gaming and gambling campaigns are the most expensive, with a median CPW of $8.74 and a lower quartile of $3.40,” Web3 marketing firm Addressable co-founder Asaf Nadler said in a recent report posted on X. CPW, or cost per wallet, is deemed a higher “quality” metric because it tracks the cost of website visitors with a crypto wallet already installed in their browser.

“Higher churn” rate may be to blame

Nadler previously told Cointelegraph that their analysis data showed that users with a wallet are more likely to convert to crypto products.

Cryptocurrencies — *CPW across different regions during the bull markets in Q1 an Q4 of 2024. Source:* *Asaf Nadler*

Nadler said the high cost-to-return ratio of crypto gaming and gambling might be due to “higher churn, speculative behavior, and intense competition.” He added:

“If Web3 gaming is truly “inevitable,” we need to find a more powerful UA engine to make it as sustainable as in Web2.”

However, Axie Infinity co-founder Jeff “JiHo” Zirlin said in an April 11 post on X that periods of high CPW are a good time to experiment.

“Create new games/product lines, consolidate our market share, and get ready for the next market expansion,” Zirlin said. “Know when it’s a coiling phase. Know when it’s time to explode,” he added.

Meanwhile, decentralized finance (DeFi) and Centralized Finance (CeFi) campaigns have it a lot easier with attracting new crypto users. “DeFi/CeFi campaigns are the most cost-efficient, with a median CPW of $2.79 and a lower quartile of just $0.10,” the report said.

The results are based on 200 programmatic campaigns run on Addressable by over 70 advertisers, claiming to target an estimated 9.5 million users globally.

It tracks how CPW varies across market cycles, regions, campaign strategies, and audience segments.

Premium markets cost more to reach crypto users during downturns

Nadler said that while premium markets experience low-cost conversions for existing crypto wallet holders during bull runs, attracting their attention becomes significantly more expensive during market downturns.

He highlighted that in 2024, the US and Western Europe saw CPW increase by four times and 27 times, respectively, between Q1 and Q3, as the markets continued to consolidate and interest from crypto wallet holders waned.

“While these markets provide scale and quality during bull runs, they become significantly more expensive when sentiment turns bearish, making them less sustainable during downturns,” Nadler said.

Meanwhile, emerging markets like Latin America and Eastern Europe “offer exceptionally low CPW in favorable conditions but can experience extreme cost volatility.”

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