Addressable, a Web3 marketing firm, has introduced a new metric called cost per wallet (CPW) aimed at enhancing user acquisition tracking for decentralized applications (DApps) and blockchain businesses.
CPW, announced on March 13, is tailored to offer more precise insights for Web3 marketers by monitoring onchain wallet activity rather than traditional Web2 advertising metrics like cost per acquisition (CPA) and cost per click (CPC).
A lower CPA signifies more efficient customer acquisition, while a lower CPC indicates that businesses are executing more cost-effective ad campaigns.
Addressable asserts that CPW will enable businesses to identify “high-value” users who are more likely to be converted into their marketing funnels, aiding in optimizing marketing efforts and avoiding “bots.”
Users with wallets more likely to convert to crypto products
Asaf Nadler, the COO and co-founder of Addressable, told Cointelegraph that their analysis data indicates users with a wallet are more inclined to convert to crypto products:
“Our analysis reveals a striking insight: users with a crypto wallet installed are 18 times more likely to sign up and seven times more likely to convert to crypto products.”
Nadler argues that this makes CPW a “more effective” metric compared to traditional metrics. He explains that metrics like CPC or cost per impression (CPM) often struggle to distinguish high-intent users from “low-quality traffic” who may not have an interest in their products.
“For the first time, crypto companies can accurately measure which campaigns drive engaged, high-value users, rather than wasting resources on bots or ‘normies’ who are unlikely to convert,” Nadler told Cointelegraph.
In a press release, Addressable mentioned that the new Web3-native acquisition metric could assist crypto projects in monitoring the number of users who become active participants in decentralized finance (DeFi) protocols, wallets, or exchanges.
Effect of wallet ownership on engagement, logins, and conversions Source: Addressable
Marketing for institutional adoption
While CPW primarily focuses on retail user acquisition, the broader crypto industry is also shifting its attention towards institutional adoption.
On January 22, Etherealize, a marketing firm supported by the Ethereum Foundation, was launched to educate institutions about blockchain and Ether (ETH).
Grant Hummer, co-founder of Etherealize, expressed the company’s goal to bring “all of Wall Street onto Ethereum rails.”
Additional reporting by Ezra Reguerra.
