Recent data indicates that acquiring users through crypto gaming and gambling campaigns is the costliest endeavor within the crypto industry. As highlighted by Asaf Nadler, co-founder of the Web3 marketing firm Addressable, these campaigns exhibit a median cost per wallet (CPW) of $8.74, with a lower quartile at $3.40. The CPW is considered a high-quality metric, as it reflects the acquisition costs for website visitors who already have a crypto wallet installed in their browsers.
Challenges and Insights into User Behavior
In discussions surrounding these findings, Nadler noted that users who already possess a crypto wallet are more likely to convert into crypto product users. Yet, the high costs associated with gaming and gambling campaigns may stem from factors such as higher churn rates, speculative behavior, and intense competition among advertisers. He remarked, “If Web3 gaming is truly ‘inevitable,’ we need to find a more powerful user acquisition engine to enhance sustainability compared to Web2 settings.”
Echoing this sentiment, Axie Infinity co-founder Jeff “JiHo” Zirlin suggested that periods marked by high CPW present valuable opportunities for experimentation. He emphasized the importance of utilizing these times to develop new games or product lines and to consolidate market share in preparation for future expansions.
In contrast, campaigns within decentralized finance (DeFi) and centralized finance (CeFi) sectors are witnessing advantageous conditions for attracting new crypto users. According to the report, the median CPW for DeFi/CeFi campaigns is approximately $2.79, with a lower quartile dipping as low as $0.10.
Market Dynamics and Conversion Costs
This analysis is based on 200 programmatic campaigns executed by more than 70 advertisers aiming to reach an estimated 9.5 million users worldwide. The intricate interplay of CPW across various market cycles, regions, campaign strategies, and audience segments has been carefully tracked.
Nadler further illuminated the dynamics at play in premium markets, noting that while attracting existing crypto wallet holders tends to be more economical during bullish market conditions, costs can skyrocket in bearish phases. He pointed out that in 2024, the U.S. and Western Europe experienced CPW surges—by four times and 27 times, respectively—between the first and third quarters, amidst a consolidation of markets and waning interest from crypto wallet holders.
“While these markets offer scale and quality during bull runs, they become significantly more expensive when market sentiment shifts negatively, raising concerns over sustainability during downturns,” Nadler explained. On the flip side, emerging markets, including Latin America and Eastern Europe, present opportunities for low CPW under favorable conditions, though they may witness considerable cost volatility.
