The Super Bowl is the most watched and expensive advertising event of the year. However, the valuations of numerous cryptocurrency businesses have decreased since February. In November of that year, FTX, a market leader, went from being a $32 billion business with a substantial marketing budget to declaring bankruptcy just four days later. Other advertisers for Crypto Bowl have also needed help with layoffs and budget cuts for marketing. In the Super Bowl the following month, viewers will probably only see a few cryptocurrency advertisements.
Many people compared the Crypto Bowl to the Super Bowl in 2000, which has since been referred to as the “Dot-com Bowl.” 17 of the 61 ads sold that year belonged to dot-com firms with thirty ads that cost $2.2 billion. Additionally, Crypto.com revealed a 20% staff reduction in June of last year, affecting 250 employees. The cryptocurrency startup made an additional 20% employee reduction announcement earlier this month, blaming industry upheaval and weakening economic conditions. The majority of those advertisers, though not all, have either gone out of business or been acquired by another company.
The ads airing during Super Bowl LVI in 2022 were dominated by crypto ads (RIP FTX), but the ads airing during Super Bowl LVII are likely to be characterized by culture wars, as a candy ad appears to respond to a conservative cable news segment, as well as ads for sugar-free soda, nonalcoholic beer, and food waste.
According to New York–based Ad Agency Berlin Cameron’s Founder and CEO, Ewen Cameron,
“The irony of the devastation we have seen to last year’s ‘Crypto Bowl’ advertisers such as FTX, Crypto.com, and Coinbase, is that crypto was created as an alternative to centralized monopolistic currencies and business strategy. The promise of a new, more democratically distributed means of success and independence. That promise in my opinion is still very real, but so is the opposing power of conventional thinking and the human instinct to spike the ball before the ref has called ‘touch down’.’’
The underlying reason behind this according to various industry experts is that the average consumer isn’t ready for the onslaught of messages regarding emerging technologies like the metaverse and cryptography. Take for instance the announcement of smart speakers with voice assistants a few years ago. The marketing teams at these companies will need to explain their relevance to consumers cautiously. In recent years, streaming media advertisements as well as digital services offered to consumers have increased. For instance, sports betting platforms, as competition heats up in both areas and brands seek relevance through “leisure dollars.” With recent challenges and cost-cutting efforts, they should reconsider leveraging the Super Bowl’s high-attention opportunity every year.