New analysis carried out by financial information website Safe Trade Binary Options has revealed how Crypto firms are beginning to emulate the success of household names such as Coco-Cola by moving into sports advertising to target a new generation of buyers.
To data, figures show that Crypto firms have spent over $3 billion this year along on sports advertising worldwide in order to raise awareness amongst the lucrative millennial and Generation Z audiences.
Safe Trade Binary Options analyst Saqib Iqbal said, “For many years, non-crypto businesses such as Red Bull and Coca-Cola have targeted young people through their sports team affiliations. Crypto firms have observed this and are beginning to adopt a similar approach in order to broaden their appeal and bring in a new, more tech savvy generation of investors.
“Sports sponsorships are a tried and tested way to attract new consumers and investors and what we are seeing is that Crypto firms have rapidly discovered that the sports business is the ideal outlet for large sponsorship spending and high-profile marketing partnerships. The largest partnership so far is Crypto.com’s $700 million deal for the naming rights to the Los Angeles arena, which was formerly known as the Staples Center.”
The shift towards sports marketing comes during a challenging period for the cryptocurrency industry with many countries mulling over tighter regulations. This year has also seen digital assets plunging to new lows, with more than $2 trillion of market value lost since a November high for Bitcoin. Hitching their name to high profile sports brands helps Crypto firms to nurture trust and enjoy the high visibility that comes with the biggest names in sports.
“2022 has really been a turning point for Crypto marketing and we’re seeing many brands seriously ramping up their sports advertising,” Saqib Iqbal adds. “Manchester United struck a multi-year sponsorship agreement with Tezos in February, valued at $27 million yearly for example, while their rivals Manchester City signed a similar deal with OKX in July.”
Other notable campaogns include Red Bull Racing’s three-year sponsorship deal with cryptocurrency firms Bybit and Tezos as their official blockchain partner in Formula One.
FTX Trading, Crypto.com, and Coinbase paid up to $6.5 million for 30-second commercial slots during the 2022 Super Bowl and UFC has agreed to a $175 million sponsorship agreement with Crypto.com.
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