Why are there so many crypto ads on sports broadcasts?

Why are there so many crypto ads on sports broadcasts?

If you’re a sports enthusiast, you’ve probably noticed a new type of advertising popping up on court screens and athletes’ social media accounts in recent months. A recent Bloomberg analysis shows that cryptocurrency companies are flooding the sports world with sponsorship funds.

“Cryptocurrency companies have committed over $2.4 billion to sports marketing in the past 18 months,” Bloomberg reported.

The article noted that a wide variety of leagues, teams and individual players have benefited from the sponsorship bonanza. The Dallas Cowboys, Golden State Warriors, and New York Yankees all have cryptocurrency deals, as do Kevin Durant and Cristiano Ronaldo. Crypto.com was a major sponsor of this year’s Formula 1 Grand Prix in Miami.

“Even the Drone Racing League is getting crypto money,” Bloomberg reported.

These sponsorships and advertisements are intended to engage more people in the cryptocurrency markets, which as it stands attracts a small share of American adults. One September 2021 Pew Research Center survey showed that while nearly 9 in 10 Americans had heard of cryptocurrencies, only 16% had “invested, traded, or used” them themselves.

“Men between the ages of 18 and 29 are particularly likely to say they have used cryptocurrencies,” Pew found.

The recent downturn in the crypto market is unlikely to help alter these numbers. In the spring and early summer, cryptocurrency companies lost an estimated $2 trillion in value amid market shifts, Bloomberg reported.

Absent a major rebound, it’s unclear what the future of crypto advertising will look like, the article notes.

“This year severe crypto market crisis will test the will and ability of these companies to keep pumping money into leagues, teams and athletes. But for now, the deals keep coming in, leading franchise owners and executives to see crypto as the next big benefactor in sports,” Bloomberg said.

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