I’ve spent quite a bit of time with new business owners in and out of the NFT industry, and the same question tends to pop up… “Should I pay for advertising?” The fact of the matter is that’s a difficult question to answer, especially in the NFT industry, one that’s like no other. The key is to consider your options, weigh the pros and cons, and make an educated decision. Here’s some information that should help:
What Is Paid Advertising for an NFT Project?
Paid advertising for an NFT project is like paid advertising for any other product. You pay and in exchange, you put your project in front of your target audience. There are a few common venues for NFT project advertising:
- Social Media. You can pay on a per 1,000-view basis to show your ad to Facebook, Twitter, and other social media members.
- YouTube. You can also create a short video and pay on a per 1,000-view basis to show your ad to the YouTube audience.
- Search. Finally, you can pay to make sure your project appears on the first page of search results on engines like Google, Bing, and Yahoo!.
Keep in mind, there are tons of other advertising opportunities. However, in my experience, those mentioned above tend to be the most effective.
Pros of Paying for Advertising
There are multiple advantages to paying for advertising for your project – some more obvious than others. Here are the most important to consider:
- Capture Your Audience Quickly. If you have a large enough budget, you can flood the market with ads and quickly get your project in front of your target audience.
- Omni-Channel Control. Paid advertising gives you complete control over how others see your brand and the project it represents. Complete control over your message means there won’t be any misconceptions surrounding what your project has to offer.
- Target Specific Audience Segments. Some audiences are more likely to get involved with your project than others. Paid advertising gives you the ability to target the segments of your audience that are most likely to take action.
Cons of Paying for Advertising
As with pros, there are a few cons you should consider before you start paying for advertising as well. Some of the most important include:
- Cost. Although you can get an ad place for $10 or $20, you’re probably not going to see much of a reaction unless you have a significantly higher budget. Moreover, the lower your budget, the more you pay per view or per click. So, it’s best to start with a budget of $5,000 or more – which may be difficult if you’re just starting out.
- Learning Curve. As with anything else, there’s a learning curve involved in online advertising. Unfortunately, if it takes too long to climb that curve, you’ll have difficulty producing a meaningful ROI.
- Creatives. Finally, advertisements are most effective when they’re matched with creatives. You can use your NFTs themselves, but to be most effective, you may have to pay a pro to spruce up your ads, which can get quite expensive.
Should You Pay for Advertising?
Whether or not you should pay for advertising really depends on you. With that said, you should consider paid advertising if you:
- Have a Meaningful Budget. If you’re going to take the paid advertising approach, it’s important that you have a budget of at least $5,000. This gives you the ability to pay less per view or per click and enough runway to A/B test ads to see what works and what doesn’t.
- Have a Willingness to Learn. Paid advertising may seem simplistic in nature, but as you dive in, you’ll find it’s not as easy as most think. You’ll need to be willing to research and develop knowledge of the algorithms that choose ads and what makes them choose yours. You’ll also need to learn how to analyze data and adjust on the fly.
- Have a Difficult Time Growing Organically. If you can’t seem to get thought leaders on board and your project is growing incredibly slowly, paid advertising may be your best bet. On the other hand, if you’re already growing at a compelling rate, don’t try to fix what’s not broken.
That’s All for Today
That’s all for today my friends, come back next week to learn why the hashtag is your best friend.