A Web3 marketing firm has introduced a novel metric called cost per wallet (CPW), aimed at enhancing user acquisition tracking for decentralized applications (DApps) and blockchain enterprises.
Unveiled on March 13, CPW is crafted to furnish Web3 marketers with finer insights by monitoring on-chain wallet activity, as opposed to conventional Web2 advertising metrics like cost per acquisition (CPA) and cost per click (CPC).
A reduced CPA signifies greater efficiency in customer acquisition, whereas a lower CPC suggests that companies are executing more economical advertising campaigns.
The firm asserts that CPW will enable companies to identify “high-value” users who are more inclined to transition through their marketing funnels, thereby optimizing marketing strategies and steering clear of interactions with “bots.”
Wallet users show higher conversion rates to crypto products
The chief operating officer and co-founder highlighted that their analytical data indicates users possessing a wallet have a heightened likelihood of converting to crypto products:
“Our findings reveal a significant insight: users with a crypto wallet are 18 times more likely to register and seven times more likely to convert to crypto products.”
This perspective positions CPW as a “more effective” metric compared to traditional measures. The executive explained that metrics such as CPC or cost per impression (CPM) often fall short in distinguishing high-intent users from “low-quality traffic,” who may lack genuine interest in the products.
“For the first time, crypto businesses can precisely evaluate which campaigns yield engaged, high-value users, rather than squandering resources on bots or ‘normies’ who are unlikely to convert,” the executive remarked.
In a recent announcement, the firm stated that this new Web3-native acquisition metric could assist crypto projects in tracking how many users evolve into active participants in decentralized finance (DeFi) protocols, wallets, or exchanges.
The impact of wallet ownership on engagement, logins, and conversions
Marketing towards institutional adoption
While CPW is primarily aimed at retail user acquisition, the wider cryptocurrency sector is also pivoting towards institutional adoption.
A new marketing firm backed by the Ethereum Foundation was launched on January 22 to educate institutions about blockchain and Ether (ETH).
One of the co-founders expressed the intention of uniting “all of Wall Street with Ethereum technology.”
Extra reporting by Ezra Reguerra.
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