Cost Per Wallet – The Essential Metric That Crypto Marketing Requires

Historically, a significant metric for tracking user growth and acquisition has been missing in the cryptocurrency world. Crypto marketers face unique challenges when measuring their performance, unlike traditional sectors that have established benchmarks for consumer acquisition. Factors such as pseudonymous users, fragmented ecosystems, and ambiguous conversion paths make it challenging to justify budgets, optimize spending, and compare strategies.

Cost Per Wallet (CPW), a new metric Recently rolled out by Addressable and designed to pinpoint the costs associated with attracting users who are ready to use wallets, this metric fills a vital gap. It provides an intuitive and actionable framework for evaluating marketing success and encouraging genuine adoption within Web3.

The Problem with Current Metrics

Even though the figures can often be elusive, crypto marketing requires a synergy of creativity and analytical thinking. Traditional Web2 metrics such as Cost Per Click (CPC) and Customer Acquisition Cost (CAC) fall short in capturing the Web3 reality adequately. The CAC metric is contingent on identifiable conversion events. Yet in the realm of cryptocurrency, such events often occur externally, whether on-chain, on an exchange, or on a decentralized platform.

The complexity of direct attribution increases as individual users often possess multiple wallets. Similar to CPC, which equates clicks with attention, engagement in Web3 often arises from more passive interactions, such as viewing banner ads or the influence of prominent personalities. Additionally, since metrics can be skewed by bots, airdrop seekers, and casual browsers, merely counting clicks does not guarantee user adoption.

Metrics specific to Web3, such as Mindshare and Cost Per Value (CPV), have emerged to address these challenges. For projects that generate income on-chain, Spindl’s CPV adopts a multi-touch attribution approach. However, many cryptocurrency ventures are still exploring or generating off-chain profits, complicating the widespread application of CPV.

Despite lacking clear attribution and cost-monitoring capabilities, Mindshare from Kaito.ai tracks engagement on Crypto Twitter and its correlation with token value. By measuring the transition from mere attention to active engagement and adoption, CPW enhances existing frameworks rather than displacing them, offering a valuable perspective for assessing performance within the growth funnel.

The CPW Approach: Establishing a Valuable Metric for Web3

Due to the regulatory challenges surrounding mobile apps and the complexities of gauging interactions with mini-apps on Telegram, many cryptocurrency projects direct traffic to their landing pages. The presence of a crypto wallet in a browser is the most reliable indicator of a legitimate crypto user. To ensure that marketing efforts are directed at authentic users instead of bots or uninterested parties, CPW calculates the expenses related to acquiring visitors with functioning cryptocurrency wallets.

A recent analysis of 245 campaigns on the Addressable platform, which featured programmatic and X Ads campaigns across 195 countries, yielded valuable insights from 439,000 visits to crypto-focused sites. The results indicated that users identified through CPW demonstrated significantly higher engagement levels.

Wallet holders are 18 times more inclined to log in using Wallet Connect or through a centralized exchange, 7 times more likely to complete an initial transaction, and 7.4 times more apt to remain on-site for over 30 seconds instead of bouncing immediately.

Owning a wallet correlates with a 2x increase in login frequencies and a 16% rise in conversion rates, even among users already engaging with the website. Our findings, based on real user behavior, affirm that CPW is a powerful tool for assessing acquisition performance and driving growth.

Findings from the Initial CPW Data

Monitoring CPW has yielded outstanding outcomes for various campaign types over the last two months. Programmatic campaigns for meme tokens have seen lowered acquisition costs, with some achieving CPW as low as $1.48. Developer-targeting capture-the-flag (CTF) campaigns fueled by Reddit Ads have also displayed impressive cost-efficiency, boasting CPW figures as low as $0.36.

The power of sustained engagement has been demonstrated through marketing campaigns for decentralized exchanges on Twitter Ads, where CPW rates average $3.07, with wallet owners continuing to engage long after the advertisements have ended. Many factors, including audience targeting, geographic location, tailored messaging, and overall market timing, influence the CPW.

While acquiring meme token enthusiasts in certain areas can be more affordable, securing traders in North America tends to be pricier, with CPW ranging from $3 to $5. Teams can leverage this information to adjust their budget allocation in alignment with their specific acquisition goals.

Rather than supplanting existing models, CPW addresses a critical gap in understanding the transition from interest to actual adoption. Ongoing community feedback will be instrumental in refining CPW, and open dialogue will assist in identifying optimal growth strategies for Web3.