Cryptocurrencies are losing popularity with Google advertisers. What does this tell you?
The bearish trend in the crypto market is affecting even the big tech giants. In the latest earnings report from Google’s parent company Alphabet, analysts noted a decline in search ad spending in the financial services and cryptocurrency subcategories. Consequently, blockchain companies have been spending less money on advertising recently, which makes sense given the current market situation. Alphabet released its third-quarter earnings report this week, noting an increase in revenue totaling $69.1 billion over the third quarter of last year. We tell you more about the situation.
Note that Google has been paying a lot of attention to cryptocurrencies lately. For example, in the first half of October, the search engine learned to output the state of Etherium addresses directly in the search bar. That is, in theory, users can google a particular address and get data about its situation. It looks like this, although we have not been able to achieve such a result.
The balance of the Etherium wallet directly in Google
The decline in cryptocurrency advertising costs is primarily due to a drop in interest in cryptocurrencies from ordinary people. We checked the actual data: the popularity of queries about Bitcoin is now at its lowest point in a year.
Popularity of a query about Bitcoin on Google
The same is true for Etherium.
Popularity of a query about Etherium on Google
As such, it’s not surprising that top developers have so far focused on improving their own products rather than promoting them.
What’s happening with cryptocurrencies
A more detailed analysis of the Google Services report, including advertising revenue, shows that the segment has grown from $58.8 billion to $61.3 billion in the last year. Google’s chief business officer Philip Schindler noted particular difficulties in the financial and cryptocurrency sectors – in particular, the marked decline in advertising spending compared to the previous quarter. Here’s his rejoinder.
We did see a reduction in spending by some advertisers in certain areas of search advertising. For example, in financial services, there have been noticeable reductions in spending in the insurance, credit, mortgage and cryptocurrency subcategories.
Accordingly, a spokesperson directly noted the change in what is happening with digital assets. The reasons for this are obvious: while developers of major projects continue to work hard to develop, many investors are trivialized by the recent collapse and are afraid to get involved with crypto. And while it makes more sense than buying coins after they have risen substantially, this is happening everywhere.
In addition, there are few newcomers to the niche right now who would be guided by advertising when choosing projects to invest in. They will reappear after the apparent start of the bull run, when the rise of Bitcoin and other coins will be talked about on TV too.
Crypto market capitalisation from the start of 2022
According to Cointelegraph sources, Google updated its financial products and services policy in July 2022 to clarify the scope and requirements for crypto-related ads. It established rules for exchanges and wallet services advertisers targeting countries including France, Germany, South Korea, the Philippines, the United Arab Emirates, Hong Kong and Thailand.
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The decline in popularity of crypto-related projects has not affected Swiss bank SEBA’s decision: it is launching a custodial service that allows customers to store popular NFTs without having to deal with private keys. The bank’s spokesperson commented on the news in a recent announcement. Here is his quote quoted by Decrypt.
SEBA Bank is proud to be the first regulated bank to offer NFT storage. We believe that digital assets and unique tokens, among others, will become widespread in the coming years and will increasingly be accepted even by traditional financial operators.
NFT investor
Although the NFT sector is showing a decline in transaction activity, popular unique tokens are still finding buyers. Monthly transaction volume reached $947 million last month alone. SEBA Bank is targeting the blue chips of the sector, that is, those NFT collections that are best known and consistently have a high market value. These are CryptoPunks, Bored Ape Yacht Club and Clone X.
To illustrate, here is a ranking of the most expensive NFT sales in the last 24 hours. As you can see, there are still those willing to spend hundreds of thousands of dollars on a beautiful and rare token.
Biggest NFT trades during last 24 hours
We believe that such a trend is quite typical for the bearish stages of the cryptocurrency market. In such an environment, there is a decline in the number of new blockchain projects, user investment volume and people's interest in crypto outside the niche. Therefore, it is not surprising that developers are in no particular hurry to get involved with advertising on a large scale.
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