Crypto User Acquisition Costs: Gaming & Gambling Lead
Recent data reveals that acquiring users with existing crypto wallets is most expensive in the crypto gaming and gambling sectors. This surpasses all other areas of the cryptocurrency industry.
High User Acquisition Costs in Crypto Gaming and Gambling
According to Asaf Nadler, co-founder of Web3 marketing firm Addressable, gaming and gambling campaigns boast a median cost-per-wallet (CPW) of $8.74, with a lower quartile of $3.40. CPW is considered a superior metric as it tracks the cost of acquiring users who already possess crypto wallets, indicating higher conversion potential.
Why the High Cost?
Nadler attributes the high cost-to-return ratio to several factors: higher churn rates, speculative user behavior, and fierce competition. He suggests that to ensure the sustainability of Web3 gaming, more efficient user acquisition strategies are crucial, mirroring successful Web2 approaches.
Conversely, DeFi and CeFi campaigns show significantly lower costs. Addressable's data indicates a median CPW of $2.79 for DeFi/CeFi, with a lower quartile of just $0.10.
Market Trends and Regional Differences
The report analyzes CPW across various market cycles, regions, and campaign strategies. It highlights that premium markets, while cost-effective during bull markets, experience a dramatic surge in acquisition costs during downturns.
In 2024, the US and Western Europe witnessed a fourfold and 27-fold increase in CPW, respectively, between Q1 and Q3, reflecting reduced user engagement during market consolidation.
Emerging markets, such as Latin America and Eastern Europe, present lower CPW during favorable conditions but also show significant cost volatility.
Note: This analysis is based on 200 programmatic campaigns run by Addressable, reaching an estimated 9.5 million users globally.
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