Crypto Gaming, Gambling Campaigns Costliest at $8.74 per Wallet

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. The median cost per wallet (CPW) for these campaigns is $8.74, with a lower quartile of $3.40. CPW is considered a higher “quality” metric because it tracks the cost of website visitors with a crypto wallet already installed in their browser.

The high cost-to-return ratio of crypto gaming and gambling might be due to “higher churn, speculative behavior, and intense competition.” This suggests that users with a wallet are more likely to convert to crypto products, but the competition and volatility in the market make it challenging to retain them. The high cost of advertising in these sectors can be attributed to several factors, including the need for sophisticated marketing strategies to engage a tech-savvy audience, complex regulatory environments, and the volatile nature of the crypto market.

Despite the high costs, the crypto gaming and gambling industry continues to grow. Platforms are investing heavily in marketing to attract users and build brand loyalty, recognizing that the initial investment in user acquisition can lead to long-term benefits. The industry is also seeing a rise in innovative marketing strategies, such as influencer partnerships and social media campaigns, which aim to reach a broader audience and create a more engaging user experience.

In contrast, 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. This is based on 200 programmatic campaigns run on Addressable by over 70 advertisers, claiming to target an estimated 9.5 million users globally.

Premium markets experience low-cost conversions for existing crypto wallet holders during bull runs, but attracting their attention becomes significantly more expensive during market downturns. 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. Emerging markets like Latin America and Eastern Europe offer exceptionally low CPW in favorable conditions but can experience extreme cost volatility.

While the initial investment in user acquisition may be substantial, the potential for growth and long-term success makes it a worthwhile endeavor for many platforms. As the industry continues to evolve, it will be interesting to see how marketing strategies adapt to meet the changing needs and preferences of users. The high cost of onboarding users through advertising in the crypto gaming and gambling sectors is a reflection of the competitive and dynamic nature of the industry.