Facebook Cryptocurrency Advertising Ban
Back in January 2018, Facebook announced a new policy that banned ads that promote financial services, cryptocurrency. That included Facebook prohibiting initial coin offerings and cryptocurrency. They’ve claimed that it is misleading or deceptive. Six months later and Facebook is now revising its ads policy for cryptocurrency “Ads may not promote cryptocurrency and related products and services without our prior written permission.”
Facebook Cryptocurrency Advertising Policy Update
Why is this a big deal? For one Facebook is one of the largest marketing platforms in the world. According to Statista, as of the first quarter of 2018, Facebook had 2.19 billion monthly active users. Facebook also owns Instagram which keeps growing in user acquisition. Facebook also owns Facebook Messenger and Whatsup. Two of the most popular instant messengers in the world.
We’ve recently posted an article about the state of ICO marketing. An attempt was made to provide a summary of the dilemmas the ban placed by Facebook and Google are creating for the cryptocurrency industry. It demonstrated how niche sites are taking advantage of the lack of exposure ICOs marketing teams are facing. Furthermore, it illustrated the concept of bounty programs and the micro influencers posting across the web without checks and balances. We’ve attempted to show how these practices are misleading.
Big Crypto Money for Big Marketing Platforms
The return of big marketing platforms as means to promote projects is a big deal. Notebtlbly, there’s a substantial profit in it for marketing platforms. No doubt they fancy a piece of the pie. In fact, a significant amount of an ICO business plan is designated towards marketing. For instance, according to coindesk ICOs raised $6.3 billion in the first quarter of 2018. Obviously, Facebook will want a piece of the pie. After all, a substantial amount of the funds collected to run the ICO is diverted towards marketing efforts. Taking that into consideration, it is obvious there’s big money for Facebook in this verticle. Its only natural it would try to find the comfort zone that will protect their users while enjoying the income that can pore in by allowing blockchain initiative access to their ads network.
Big News for The Crypto Community
However, this will also mean that projects will now have an outlet to promote it pre or post-ICO. This practice will have a considerable impact on the onboarding of new users. It will help with the adaptation of the technology. The Facebook cryptocurrency policy update states that “Advertisers wanting to run ads for cryptocurrency products and services must submit an application to help us assess their eligibility.” Of course, we all still need to wait and see how the Facebook new policy will unfold. Which projects will it deem valid to promote on its ads network and which are rejected is yet to be clarified. Regardless, this is pretty big news for the crypto community and the efforts to legitimize those valid projects that are looking to disrupt industries. Facebook’s cryptocurrency policy update will pave the way for straight advertisement by the project.
The Ban and The Logic
The ban by notable marketing platform giants had plenty of logic in it. The ban helps to protect their users. With the abundant amount of scam projects and misleading advertisement, it was only natural that these marketing platforms will take a step back and evaluate the situation. Furthermore, it was natural they ban such projects from taking advantage of users with false advertisement. However, not all projects are a scam. It is irrational to deem an entire industry and all of its projects as a scam. Its only natural, just like regulation, that slowly a median is found. Hopefully, there won’t be bias in the process of allowing projects access to the ads network. Also, it can be incredible if the new update will pave the way for valid projects to get access to expose their concept and ideas to the public.
Facebook Fair Play
Hopefully, we will see a fair play by Facebook with their evaluation of projects. Finally, positive interaction between the crypto community and Facebook is essential. It will feasibly signal to other networks that have banned the cryptocurrency industry that it is ok to allow marketing on their platform as well. We will closely monitor the progress of the new Facebook cryptocurrency advertisement policy update. Look out for updates as information comes in. We promote our community to share and report as well.
Let us know what do you think about the new FB cryptocurrency advertisement policy update. Particularly, do you think other advertising platforms that have banned crypto will align with this policy update?
Read the following posts to get your head around ICOs