In Spain, the number of crypto app users continues to grow with an increase of up to 41% in some platforms.
This year, Spain enforced regulations for cryptoasset advertising.
Cryptocurrencies have become a unique and innovative proposition that has burst onto the global economy. In just a few years, the growing interest of retail investors and institutions has increased the potential of advertising this asset. But such an interest also increased regulations to protect investors. Entravision, the world’s leading company in advertising solutions, media and advertising technology has conducted an analysis to understand why companies are increasingly investing in digital advertising in the industry.
Data speaks for itself: the capitalization of cryptocurrencies exceeded €3 trillion by the end of 2021. At the same time, and according to CoinGecko, investment in cryptocurrencies has grown by almost 3,000% over the last two years globally and, for the first time, listed companies such as microStrategy, Square, and Tesla included Bitcoin on their balance sheets.
Spain does not want to be left behind. With a total of 200, Spain is the fourth country in the world with bitcoin dedicated ATMs – the most widely used type of cryptocurrency. And to top it off, applications like Binance, Crypto.com and Coinbase have recorded significant growth figures ranging from 17.7% to 41.5% in the number of monthly users.
Cryptocurrencies present themselves as a new game changer with great opportunities for digital advertising. Until recently, there were no regulations governing this activity. Thus, for example, Meta increased its licenses so that more advertisers could advertise on Meta platforms.
In response to this situation, on January 17 in Spain, the National Securities Market Commission (CNMV) launched a regulation on how to advertise in this industry in an orderly, responsible and efficient way. The Spanish market has thus become a pioneer in the regulation of this type of advertising.
From now on, advertisers and companies must include a message in their advertisements warning of the risks any person takes on when investing in cryptocurrencies. In addition, in the event that such communication is addressed to more than 100,000 people, the company must notify the CNMV ten days in advance of their intention to launch an advertising campaign. This regulation is mandatory for all parties involved such as app developers, investors and advertising providers.
However, it should be noted that this regulation does not come into being just because cryptocurrencies are advertised but because there are risks small investors may lose their money. On some platforms, between 70% and 80% of people lose their invested savings, compared to 20% of those who earn. This is where the new regulation comes into play.
Why bet on digital advertising in cryptoassets?
New regulatory requirements and the growth of apps focused on cryptoassets can help streamline your advertising efforts. Entravision has proven to understand regulatory limits, and works to enforce them efficiently in the distribution of advertising efforts. Below we have listed 5 reasons why it is important to consider investing in digital advertising in cryptocurrency-specific applications.
The acceptance of cryptocurrencies as payment is good proof that your company is innovative in adopting emerging technologies. This is a key element to achieve sustained growth and efficient processes, and will provide positive results, optimization of resources and, in turn, will help improve the level of profitability and competitiveness.
2. Blockchain technology
Marketers can draw inspiration from the blockchain technology used to push cryptoassets. Blockchain will be important because it will provide advertisers or agencies with access to valuable data when launching campaigns or strategies. We can also say that there are companies and projects based on blockchain technology that add creativity not only as a financial agent but also as a product of interest to the consumer.
Transparency would manage to reduce suspicious traffic in programmatic advertising, i.e. advertising that uses software to buy digital advertising spaces. In this case, blockchain technology would solve the problem of learning if the ads are being seen by real people or if the clicks are real. Another benefit would be the choice of secure sites on which to advertise.
4. Better access to information
Cryptocurrency applications can make a very detailed profile of who their users are, which allows for a categorization of profiles. This is decisive for the optimization of digital marketing strategies by focusing on the user.
5. Increased use of apps
The growth of the app market drives all digital advertising efforts towards these platforms. Vivid Money, Coinbase and Binance are among the most downloaded platforms, so directing the advertising strategy to these apps will help increase a brand’s exposure.
Sources: Coinmarketcap & CoinGecko