Cryptocurrency in Advertising

Cryptocurrency in Advertising

Digital currencies such as Bitcoin have been making headlines recently as the price soared over thirteen fold last year. However, sites such as Facebook and Google have decided to ban advertising for cryptocurrency amid scrutiny of the financial products that have become a rapidly growing market. Concerns about cryptocurrency have motivated these sites to protect their users from ads persuading them to purchase products like Bitcoin.

Google employees responsible for the decision have stated that cryptocurrencies are “unregulated” and speculative in nature which could prove to be a threat to the user experience. Facebook made a similar decision as part of an effort to rebuild trust with its users on the platform. Google chose to ban all ads about cryptocurrency-related content including initial coin offerings, wallets and trading advice on the ad platforms.

As a result of these bans, even companies with legitimate cryptocurrency offerings won’t be allowed to run ads using any of Google or Facebook’s ad products. The websites believe that there has been enough consumer harm or potential for consumer harm as a result of cryptocurrencies to warrant the ban on advertising. Cryptocurrency scams are the main concern that could negatively affect users and put them in financial danger.

Understanding Cryptocurrency

Cryptocurrency products like Bitcoin are essentially used as an electronic cash system that doesn’t rely on banks or third parties to verify transactions and create new units. Transactions are instead confirmed using cryptography on a publicly distributed ledger called the blockchain which enables peer to peer payments. Cryptocurrency transfers can happen more quickly than with traditional banking systems which may take days to transfer money while crypto transfers happen in minutes.

In the same way that credit cards require a signatures, cryptocurrencies also require a digital signature. The transactions are secured through a system called public key encryption which allows each user to have a private key and a public key on their account. The private key is used as a digital signature for the user to prove who they are and authorize a transaction.

Bitcoin users were able to profit significantly from using the cryptocurrency which is making these financial products highly sought after. Unfortunately, scammers have become an issue with cryptocurrency and many are losing money as a result of investing in fake currencies. Scammers are making millions off of unsuspecting investors who believe they are paying for a currency similar to Bitcoin.

Countless high profile scams are what led Facebook and Google to ban advertising for all cryptocurrencies to prevent users from investing their money in a fake financial product. Google has been known to crack down on advertising that doesn’t follow its rules and the company said that it took down more than 3.2 billion ads in 2017 that violated its policies. Since cryptocurrency has become less trustworthy, banning all ads was their solution to protect users as much as possible. Legitimate and Scam Cryptocurrencies

Legitimate and Scam Cryptocurrencies

The reason Google chose to ban all of these types of ads from their site is because they find it nearly impossible to identify legitimate projects versus scam artists. People have been inundated with fraudulent advertisements claiming that users can make money by investing in new forms of cryptocurrency. There has been a major backlash against cryptocurrency products and especially ICOs or Initial Coin Offerings.

An ICO is a way for start-ups to crowd fund investment and ask people to invest in a cryptocurrency in exchange for a token that’s issued by the start up. The digital coin can then be used in exchange for future services offered by the company. There is also the possibility of the value of the coin climbing much higher than the initial investment as was the case with Bitcoin.

Although there are legitimate possibilities for people to make money and benefit from investing in an ICO, there are plenty of scammers online because ICOs are unregulated and investors don’t have the same protections as with other assets like stocks. People can invest in something that seems legitimate until they begin to see warning signs such as a lack of correspondence from its founders and failed attempts to recoup lost funds. These scams take people’s investments, don’t develop anything and eventually cut ties with investors.

Because there is no way for Google or Facebook to tell which cryptocurrency ICOs are real and which ones are going to steal from users, they have banned all ads across the board. This may protect people from being swayed by an ad asking for their investment in a false cryptocurrency. Some believe that Google may eventually modify their ban to include legitimate crypto ads once ICOs become more regulated.

For the time being however, users will not see any further advertisements on Facebook or Google for cryptocurrency starting in June of this year.

Matt Ramage is founder of Emarketed a web marketing agency located in Los Angeles. He loves coffee, good design, and helping businesses improve their look and getting found on the Internet.

Who Clicks on Internet Ads?

too many ads Ads over here and there… but who really clicks? As a business owner, your worst nightmare just really might come true if customers aren’t clicking on your ads. This infographic takes a look at banner ads and here are some interesting findings:

– Users ages 55 and older are most likely to click
39% of people clicked an ad because it showed a product that they were interested in or it made them interested in a product that they hadn’t previously considered
54% of people don’t trust most online banner ads they see
61% of people don’t click because they don’t want to be distracted
31% of people are worried that their internet behavior will be tracked

With all this uncertainty it’s understandable why companies might choose NOT to participate in using paid ads. Last week, GM made a huge announcement that they would no longer be participating in Facebook advertising. This was a big decision and must have been based on the fact that they weren’t getting a reasonable return in their whopping $10 million budget in Facebook ads. Some marketers criticize GM for completely abandoning ads on Facebook and let’s face it, competitors like Ford must be really enjoying it.

An argument can be made that all businesses must utilize Facebook ads but that’s simply not the case. This argument can also be made for Google paid search ads, text ads, display ads, geo-targeted ads and more. When it comes to a small business, it’s even more important to do the research, as most don’t have an extra 10 million to spare.

If you need help before planning an extensive search ad campaign, we can help evaluate all your options so that you can get the best return on your investment. Make sure to contact us with any questions.

Matt Ramage is founder of Emarketed a web marketing agency located in Los Angeles. He loves coffee, good design, and helping businesses improve their look and getting found on the Internet.