The indulgence to crypto advertising written by Mark Zuckerberg will inevitably affect the alignment of forces on the field of the largest players in digital marketing. DeCenter asked the market players how they reacted to the news.
Without waiting for Independence Day, Facebook presented the crypto community with a gift. The news that the social network is returning the possibility of advertising cryptocurrencies did not affect the rate of Bitcoin, of course, but the news reached every media outlet and shook anyone who was not expecting any positive news for the market.
ICObench.com expert David Drake sees in this incident Facebook's attempt to keep the audience of millennials. "The fact that David Marcus from Coinbase has headed the Facebook development team speaks of Zuckerberg's intention to purchase this resource, which is rapidly gaining popularity. This would be a smart move, and I readily believe in this scenario, as in the possibility of Facebook creating its own cryptocurrency," Drake commented.
The editor in chief of Tech News and Cryptocoin News Simon Cocking also adheres to the same position. "It was foolish to abandon the money that advertising cryptos can bring," Cocking says. And I do not doubt that Facebook will soon release its own currency. When planning marketing, however, I would not rely solely on what is happening at Facebook," he stressed.
"It cannot be said that the existing ban has blocked oxygen inflows for crypto projects," says Olesya Kalinichenko, head of marketing of the ICBF investment fund. It may be unpleasant, of course, but Google’s ban is a much more detrimental event. And, of course, if you close an advertising platform that covers a large portion of the digital advertising market, the rise in prices for placements on the remaining resources is only a matter of time. Immediately after the limitations were imposed by Facebook, Google, and Twitter, the cost of advertising in crypto media and placement on listings has grown significantly, and is unlikely to decrease despite Facebook's return to the battle for budgets."
Marketing expert Svetlana Shabalina (former CMO of Yandex.Money and Rambler) also sees no reason for dumping. "It is rather likely that the sites will introduce new ways of targeting the audience and invent new advertising formats, or connect to existing advertising networks. Demand, as you know, generates supply, and the demand from blockchain projects for advertising in digital is growing at super fast rates. Facebook today is one of the largest digital platforms for communication between the user and the advertiser, and at the same time reflects the changing attitude to cryptocurrencies, if not all over the world, then at least in progressive countries. And the fact that it has started to change its attitude to the advertising of cryptocurrencies, on the one hand, just shows how fast blockchain and cryptocurrencies are conquering the world. On the other hand, this step has a simpler explanation: Facebook no longer wants to deprive itself of a share of the profit from a niche operating with huge budgets."
"I have not heard about any plans to revise the cost of advertising downwards," says Adriana Hamacher, the managing editor of Blockchain News. "And do not forget that the ban has not been lifted from ICO advertising, and the campaigns themselves will have to receive approval from Facebook moderators before publication."
We also asked the opinion of a leading expert, the deputy editor in chief of the RBC channel Daniil Babich, who considers the existing measures to be logical and justified. "The risks of the ICO and its prospects can be assessed only by a very narrow circle of specialists in this field, as well as by professional investors. In the U.S. and E.U. countries, a lot of IPOs are held every week. IPOs, in contrast to ICOs, are still less risky, as the process is more streamlined, the control of the regulators is stricter, and the organizers are more experienced and have a reputation. Yet, there is no advertising for some reason. Apparently, IPO organizers are more competent in promotion issues and focus on specialized media and work with exchanges, where placements are held within the laws of those jurisdictions where these IPOs are held. There is also a valid practice of the Road Show to attract large investors. Advertising in social networks is not evil in itself, but Facebook can face problems with the laws of those countries where ICOs are prohibited or restricted in a regulatory way, especially if so-called scam projects are advertised, the share of which in the total mass of ICOs is very high. The targets of scammers are not professional investors, but naïve people, who are easier to deceive. I want to note that despite the “ban on advertising” on Facebook, I did not encounter any restrictions in terms of discussing this topic or even downright advertising. It is possible that the social network filters are not yet able to identify such cases and distinguish information and discussions in the threads from advertising, which is easily veiled. Apparently, this could also affect the decision of Facebook to soften the policy with respect to cryptocurrencies. Here it is necessary to clarify that advertising will not be resolved unconditionally, but at the discretion of Facebook. It is really silly to forbid, for example, the publication of materials on Bitcoin or Ether. Everyone knows about Bitcoin already, and every second user of Facebook knows about Ether. Information on existing cryptocurrencies can be more easily formalized than information about planned tokens in the future," says Babich.
The entrepreneur and ICO expert Nikolay Shkilev believes that Facebook realized too late that it would not be easy to restore the trust of the crypto community. "At one time, Facebook made a big mistake, and the community strongly resented it by diverting to other media. The market quickly adapted. Everyone will continue finding alternative resources just as they have before. If we evaluate Facebook's losses from the crypto advertising ban, it is unlikely that they will be able to return even 10 to 20 percent of the lost revenues, as the trust has been undermined, and the main engine in the form of thousands of ICOs cannot be placed, and that is where the main advertising budgets lie."
Be that as it may, the news is positive, and the managing director of Blockchain Advisory Jonathan Galea sees in it an excuse for the recovery of the market. "The remaining ban on ICO advertising is justified by the fact that a lot of unfair projects exist in this area. I hope that the current changes will reduce the amount of negative information about crypto projects in general," he said.
British marketer and founder of PSM Consulting Paul Sullivan is satisfied with the policy changes that Facebook has introduced. "Against the backdrop of Google Adwords and Twitter bans, Facebook has, of course, made a competent competitive decision, even despite the harsh conditions for moderating crypto advertising. Fiat fundraising in its time also passed through complex stages, now the ICO is an unregulated sphere, this must be recognized and we must act within the framework of existing conditions. Industry growth will be ensured by issues of its regulation, not prohibitions or restrictions."