Crypto Gaming, Gambling Ads Cost $8.74 Per Wallet, Highest in Industry

Crypto gaming and gambling campaigns are currently the most expensive way to acquire users with existing crypto wallets, ranking highest in cost among all sectors of the crypto industry. According to a recent report, the median cost per wallet (CPW) for these campaigns is $8.74, with a lower quartile of $3.40. This high cost-to-return ratio may be due to higher churn rates, speculative behavior, and intense competition within the industry.

The high cost of onboarding users through ads in the crypto gaming and gambling sectors can be attributed to several factors. Firstly, the target audience for these ads is often tech-savvy and discerning, requiring sophisticated marketing strategies to capture their attention. Secondly, the regulatory environment for crypto gaming and gambling is complex and varies by region, adding to the cost of compliance and legal considerations. Additionally, the volatile nature of the crypto market means that companies must be prepared to adapt their marketing strategies quickly to respond to market changes.

Despite the high costs, some industry experts see periods of high CPW as an opportunity for experimentation and market consolidation. Jeff “JiHo” Zirlin, co-founder of Axie Infinity, suggested that companies should use these periods to create new games or product lines and consolidate their market share in preparation for the next market expansion.

In contrast, decentralized finance (DeFi) and Centralized Finance (CeFi) campaigns are the most cost-efficient, with a median CPW of $2.79 and a lower quartile of just $0.10. This cost efficiency can be attributed to the lower barriers to entry and the broader appeal of DeFi and CeFi products to a wider range of users.

The results of the report are based on 200 programmatic campaigns run on Addressable by over 70 advertisers, targeting an estimated 9.5 million users globally. The report tracks how CPW varies across market cycles, regions, campaign strategies, and audience segments.

Premium markets, such as the US and Western Europe, experience low-cost conversions for existing crypto wallet holders during bull runs. However, attracting their attention becomes significantly more expensive during market downturns. In 2024, the CPW in these regions increased by four times and 27 times, respectively, between Q1 and Q3, as the markets continued to consolidate and interest from crypto wallet holders waned.

Emerging markets, such as Latin America and Eastern Europe, offer exceptionally low CPW in favorable conditions but can experience extreme cost volatility. This volatility makes it challenging for companies to maintain sustainable marketing strategies in these regions.

The high cost of onboarding users through ads in the crypto gaming and gambling sectors underscores the importance of effective marketing strategies. Companies in these industries must not only attract new users but also retain them, as the lifetime value of a user can be substantial. This requires a comprehensive approach to marketing that includes not only advertising but also customer engagement, loyalty programs, and continuous innovation in product offerings.

In conclusion, the high cost of crypto gaming and gambling ads for onboarding users is a reflection of the competitive and dynamic nature of these industries. Companies must be prepared to invest heavily in marketing to attract and retain users, while also navigating a complex regulatory environment and adapting to market volatility. Effective marketing strategies that focus on customer engagement and innovation will be key to success in these sectors.