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The outsourcing of advertising is becoming a promising opportunity for many marketing firms in India. Restrictions on crypto ads, imposed by giants like Facebook and Google, are forcing crypto businesses to seek alternative ways to reach customers and investors. The high cost of these services globally is pushing more companies towards the Indian market.
Also read: Russian, Chinese, Korean Associations to Sue Internet Giants Over Banned Crypto Ads
Agencies in India Ask for Less and Take Crypto
Companies trying to establish themselves in the crypto sector and raise funds through cryptocurrencies are increasingly turning to India, local media reports. Outsourcing advertising and marketing operations to Indian agencies offers startups a cheaper alternative now, when getting the message across to a large audience is both expensive and difficult.
Several internet giants have recently banned crypto-related ads on their platforms. The social network Facebook imposed restrictions in January. Google, the largest search engine, introduced similar measures in March. Last week the microblogging site Twitter confirmed earlier reports of changing policies in the same direction.
Crypto businesses from around the world are actively seeking ways to bypass the ban and minimize their expenses. Marketing agencies in India offer solutions to both these challenges. They use platforms like Telegram to spread commercial information on behalf of their customers. “Airdropping” proves to be a successful marketing technique and these groups often get paid with tokens from the company they are advertising.
“Two or three months ago, there were only a few platforms that helped in advertising. Now, a company going for an ICO will have hundreds of proposals from new marketing agencies that are sprouting in India,” Karnika Yashwant, CEO of Key Difference Media, told the Times of India. His Chennai-based advertising agency works with 14 foreign clients, mostly from Europe.
A similar trend has been registered in China, where authorities imposed an outright ban on initial coin offerings. The harsh restrictions have actually catalyzed the development of a whole new industry of brokerage services. As news.Bitcoin.com reported, many of these intermediaries are using the messaging app Wechat to promote opportunities to investors seeking to get involved in ICOs.
Action, Reaction, Effect
The ban on online crypto ads has already provoked reactions around the world. Last week crypto associations from Russia, China and South Korea agreed to set up the Eurasian Blockchain Association. It will unite efforts to defend the interests of the crypto community on a global scale. Its first task is to challenge restrictions on crypto-related ads imposed by social networks and search engines. EBA members have accused them of cartel collusion and abuse of monopoly power. They plan to take the matter to court in the US next month. Their intentions may lead to a series of class actions in multiple jurisdictions.
The restrictions introduced by internet giants, however, may have little net effect on crypto businesses and their marketing strategies. Companies in the sector often prefer to advertise on platforms that are unique to the ecosphere, including specialized news outlets and popular messaging services. “Facebook and Google Adwords hardly generate demand [for ICOs]. Only a person new to the space would be googling about it,” says Salim Ali, CEO of an Indian company which is planning an initial coin offering.
Businesses like his also like to have the option to cover costs with cryptocurrency. In general, crypto payments are more popular with counterparts from the sector. Marketing services in India are enjoying growing popularity thanks to their affordable rates and also the willingness of local agencies to accept cryptos and tokens.
Do think the ban on crypto ads may also have a positive effect if it leads to the development of new crypto businesses? Share your thoughts in the comments section below.
Images courtesy of Shutterstock.
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