What is Crypto Marketing in 2020?

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Over the past decade, the crypto industry has proven itself to be a unique industry with a specific audience that requires an equally ...

Over the past decade, the crypto industry has proven itself to be a unique industry with a specific audience that requires an equally specific approach. In this regard, in 2020, the advertising activity of crypto companies differs significantly from that which banks and various financial companies resort to. Industry leaders choose not to rely on traditional online advertising on Facebook, Instagram and YouTube. They go the other way: work with bloggers (opinion leaders and influencers), rely on MLM marketing referral programs and actively organize various contests and sweepstakes with generous prize pools. CoinDesk  claimsthat crypto marketing this year strikingly resembles marketing in the beauty industry, and here it is just as effective. In the material, we understand the main trends in advertising campaigns for the crypto business.

General concept

Michelle Fan, a  blogger  with a million YouTube subscribers, uses the same techniques to spread skincare life hacks and the idea of ​​financial freedom at the expense of bitcoins. Moreover, she assures that the leaders of the crypto industry, like her, use marketing schemes from the beauty industry, even if they themselves do not know about it.
Both areas prefer to use the DTC (Direct to Customer) business scheme, independently creating and then promoting and selling products / services, working as closely as possible with the community. Sales are built through aggregated retail platforms like Amazon, Etsy and Shopify, or even through accounts on popular social networks.
The latter option is especially often used by industry leaders in developing countries, where large sites like Amazon simply do not work or are not popular. For example, the bitcoin maximalist from Libya, Michelle Haber, in a commentary to CoinDesk made it clear that social networks and chats are today the most effective way to distribute goods / services in crypto-topics. He said that local traders, in order to  "educate" the  audience, help buy hardware wallets by selling them through groups on social networks. Buying a Trezor or Ledger in any other way is often simply impossible.

Working with influencers

Michelle Phan is far from the only person in the crypto community noticing similarities to the beauty industry. So, Maria Paula Fernandez, who actively uses the services of the DeFi sector and is seriously interested in the topic of skin care, gave the CoinDesk portal a similar comment.
She notes that in both cases, society has become accustomed to relying on the opinion of the society itself, instead of trusting the opinion of the world's leading media. Therefore, in both sectors, so-called influencers are very popular - opinion leaders and bloggers who spread information among their audience on YouTube, Instagram, TikTok and other social networks, receiving a reward for this.
Crypto companies very often, like firms in the beauty industry, provide their products to influencers for review and further “coaching” their subscribers. Maria Paula Fernandez sees nothing shameful in this. Observing the experience of bloggers, subscribers begin to acquire a kind of crypto-education and spread the information received through word of mouth. Thus, the crypto community is growing.
Over time, the most successful bloggers can count on sponsorship from certain crypto companies. For example, podcaster Marty Bent, whose show is now funded by Unchained Capital and Cash App developer Square, witnessed a similar scenario. The latter, by the way, in addition to Bent sponsor another podcaster  Joe Rogan  and rapper  Lil Bed and .
Many other large companies have resorted to a similar strategy, including the Kraken exchange. They are similarly interested in sponsoring reputable content creators who promote products to loyal followers. The American exchange is sponsoring crypto startup Reckless VR, founded by Udi Wertheimer for virtual reality cryptoconferencing, and renowned podcaster Peter McCormack, who launched his own media brand Defiance last year. McCormack, who started as a hobby, turned it into his life's work, thanks to which he  earned  about $ 1 million in 2019.
At the same time, working with bloggers is an excellent opportunity to enter foreign markets. This is understood at Crypto Этоcom, where they use opinion leaders to attract the Russian-speaking and Turkish-speaking communities. Does this approach yield results? Judge for yourself: over the past six months, the number of startup users has doubled and currently stands at more than 2 million people.

Referral bonuses and MLM marketing

The development of products within the community often develops into MLM marketing strategies, which imply the presence of referral and in-depth bonuses - the favorite schemes of cosmetic brands. They use a multi-level reward system for referring partners, where usually you can get a bonus not only for personally invited, but also for "friends of friends and their friends." Thus, opinion leaders who distribute crypto products often receive part of the funds that the people they invite will pay for the product / service.
The relevance and effectiveness of the trend is confirmed by the fact that these techniques are not shy about using not only crypto startups, but also top cryptocurrency companies widely known throughout the industry. A prime example is SatoshiLabs, which manufactures and distributes Trezor wallets. Head of Communications Iva Fizerova confirmed that she is actively pursuing  "affiliate marketing"  with bloggers as an alternative to paying them for direct advertising.
Equally striking examples are the largest cryptocurrency exchanges Binance and Gemini, which managed to achieve success not without the help of referral systems copied from Avon and Mary Kay multi-level marketing campaigns, which they have been using for decades.
Instagram blogger Chjango Unchained has been earning good bonuses for several months in a row after posting a referral link to Gemini on her profile. When her subscribers register on the exchange and buy more than $ 100 worth of cryptocurrencies, she receives $ 10 in BTC. According to her, she is doing a good deed. The blogger wants people who are interested in her opinion on digital money to start their crypto path on Gemini, and not, for example, on Coinbase, because the latter charges  “insane commissions” .
Referral bonuses are a typical phenomenon for many crypto companies, and successful bloggers are happy to use this. A prime example is Michael Gu, known by the pseudonym Boxmining. It has been disseminating information about digital money since 2012, having amassed an audience of over 200,000 YouTube subscribers and over 3,500 participants in a Telegram chat during this time.
Although hardware wallet maker Ledger does not sponsor its activities, it posts referral links in video descriptions and collects donations from subscribers. As you might guess, he feels pretty good. At the same time, he emphasized that user activity during the coronavirus pandemic is only growing, especially after YouTube began to put a spoke in the wheels of crypto content creators.

Gifts, contests and sweepstakes

Making a small gift is a great way to introduce your audience to a new product. This has long been relevant in the cryptocurrency market. Coin creators are eager to conduct airdrops and bounty campaigns, allowing the crypto community to test the new coin. A similar approach is popular in the beauty industry. Samplers of perfumes and brand magazines with scent persuaded many girls to buy full versions of the scent.
In addition to the developers of cryptocurrencies themselves, a similar approach is used by crypto companies of a different direction, which cannot carry out airdrops due to their technical features (for example, this is relevant for manufacturers of hardware wallets). Therefore, they organize more classic contests and sweepstakes. For example, they play a wallet for reposts on social networks or videos published on YouTube.
It is noteworthy that crypto brands are even more active in this area than cosmetics manufacturers. They work not only with trusted bloggers with many subscribers, but also help less "promoted" users to become such. Therefore, they periodically assist them in organizing sweepstakes in order to attract subscribers who can potentially become new customers.
Iva Fizerova from SatoshiLabs confirmed that Trezor manufacturers periodically help users to attract new followers through giving out gifts. Moreover, this approach brings excellent results. By working with the community in this way, they have managed to sell hundreds of thousands of wallets. But most importantly, a brand reputation has been formed around the product, which is warmly received by the audience. And this effect is so strong that the company simply does not see the point in spending money on expensive traditional advertising.
Most importantly, despite all the problems of 2020, including the coronavirus pandemic, which seriously hit the global economy and, consequently, people's wallets, the demand for products did not fall. This approach remains effective, while the success rate in traditional advertising has certainly decreased. Fizerova noted that over the past three months they have recorded a stable increase in demand for goods. Moreover, they even had to solve problems with delivery, if only the buyers got the desired devices on time.
A similar approach and results are seen with other hardware wallet manufacturers. Thus, Rodolfo Novac, co-founder of Coinkite, confirmed the growth in demand for products, despite the pandemic. Community engagement is their main marketing strategy because it really delivers results. They have donated about 50 wallets to YouTube reviewers over the past three years. Novak prides itself on the fact that their  “users help other users” . According to him, this approach allows you to sell products at a lower price, since the cost of the product does not include the high costs of the usual marketing campaigns.

Are your marketing strategies effective? More than

The cryptocurrency market relies on marketing strategies that have proven themselves in the beauty industry, which are no less effective in the new field. Maximum efficiency is achieved with a lethal combination of all three of the above methods. It's about when founders of crypto companies become opinion leaders themselves. Just look at Changpen Zhao, head of Binance, or Justin Sun, head of TRON. Both entrepreneurs are bloggers with a huge army of followers and are personally involved in promoting their brands, regularly rewarding their audience with nice gifts.
It's not hard to guess why industry leaders rely heavily on this type of marketing. It is expensive to advertise products in the traditional way, especially for startups that do not yet have attractive products with a good reputation behind them. But more importantly, crypto products are quite complex in themselves, so they often need detailed explanations that are difficult to implement within the framework of traditional advertising. Agree that selling a bottle of Fanta with a new taste is much easier than a hardware wallet for cryptocurrencies, especially since most people do not understand what it is at all. On top of that, regular advertising is complicated by the fact that media giants regularly block crypto content.
In such a situation, marketing borrowed from the beauty industry seems to be the most acceptable and most effective option. By focusing their marketing budgets on influencers and working with the community, crypto companies are achieving the desired result even with the coronavirus pandemic. The crypto community is getting bigger and stronger every day. But the best part is that this growth cannot be stopped.

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Crypto Currency Magazine: What is Crypto Marketing in 2020?
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