The news on popular platforms banning cryptocurrency-related advertisement keep on adding up. The latest pieces of information were that of Yandex’s alleged intention to join the crack down on crypto ads These were preceded by the same moves made by Facebook and Google, whereas the rumors about Twitter planning to introduce the similar prohibition have been circulating too. This background has triggered a discussion on the possible outcomes of this situation. Oksana Belyanskaya, the co-founder of Rocket PR company has shared her view of the emerging situation.
Russian ads platform Yandex Direct has never shown context ads, related to ICO and cryptocurrencies, as stated by the company’s PR Department. Google is planning to do the same. Facebook also imposed a ban on the promotion of the ICO, cryptocurrency and binary options. Crypto currency and blockchain projects will lose their main advertising platform and coverage. What this may lead to?
Generally speaking, such bans may influence cryptocurrency exchange rates. These have already decreased by 2-7 percent, but this will not cause sharp fluctuations.
Projects at the stage of pre-ICO and ICO will face bigger problems, however. After all, about 20-25 percent of their funds are being raised with the help of traffic coming from advertising platforms. At the same time, the greatest traffic is still on Google, Facebook, since advertising campaigns are conducted in the international format, whereas Yandex Direct accounts for no more than 3-5 percent in total.
The situation with advertising on Facebook, Yandex and Google can develop under two scenarios. Officially, advertising on these platforms will be resumed at the stage when the cryptocurrency sphere will be regulated and licensed. Unofficially, the company will bypass the bans by avoiding to use the words “ICO”, “cryptocurrency” and the kind in their white papers and advertisement texts.
Promotion budgets start from $ 300,000 per month. And if heretofore companies just “covered” all the Internet with their ads, now they will have to reallocate budgets and consider more effective investments.
One of the reasons why large platforms refuse to advertise ICO is the probability of fraud, with which these brands are unwilling to be associated. On the other hand, it is possible that this is the result of the governments pressure to limit the growth of blockchain projects during the period when the industry has not yet been regulated.
For projects with super-well-known advisors such restrictions are not damning at all: there are examples when the required amount of $ 5 000 000 – 10 000 000 was raised after a successful post on Facebook or Instagram. So, speaking in general terms, this measure could “purge” scammers from the market.
However, those crypto companies that aim at entering the market with comprehensible products, should think about their PR history and reputation. A strong image would rather be created by the efforts made prior to ICO stage than post factum. The same seems to be true of IPOs too. The process will increase in time, but the product and the companies themselves will become more “understandable”. This trend will definitely take some time to evolve, but the companies and the products they offer will gradually become more ”understandable”.
There is a third scenario as well: the advertising and marketing market may respond by increasing the effectiveness of existing tools. Companies ‘ money would be invested into direct banner advertising, stream channels on Vichat, Viber and Telegram, forums like Bitcointalk, as well as into token listing and classic PR.