ICO (Initial Coin Offering) has proved to be a cost-effective method of raising funds for startups. While formulating the offering requires a lot of investment in time and money, marketing has become easier with the abundance of tools and channels.

Some of the Main Challenges for Ico Marketing Are

Lack of Adequate Coverage - Only a few firms with strong financial backing have managed to raise millions of dollars to get a strong standing in the market. Journalists who have good knowledge of blockchain technology and cryptocurrencies are not aware of the massive potential beneath ICO’s. The likes of top technology companies such as Facebook, Google, and Twitter have placed bans on ICO advertisements. This has led to a crisis as there has been a huge increase in the CTR (Click Through Rates) and CTA (Call to Action) of available ad units. Access to popular digital ad platforms at an affordable cost is essential to improve the popularity of ICO.

Absence of Effective Payment Solutions - More than meeting the different metrics of marketing, an average customer needs quick settlement of transactions for better business experience. Payment solutions must be customized based on the requirements of a customer.

Targeting the Right Audience - With more emphasis on delivering the promotional message seamlessly, there is an urgent need to customize the final solution by targeting different sections of the audience. Meaningless campaigns filled with jargon and quotes supported by experts become indecipherable to the common investor. Condensed messaging and efficient storytelling can lead to more clarity.

The Pressure of Competition - If one ICO project is launched, close competitors claim to offer the same features in their respective offerings. This can result in confusion among investors as they would struggle to choose the genuine offering. Agencies that do not fulfill their promises would lose their reputation and can face severe legal implications. Hene, every company must be transparent and disclose its offers in a way that is realistic as well as achievable.

Lack of Transparency - Though firms are clear in fulfilling their business objectives in a reasonable time, they do not clearly disclose their value proposition to the target audience. It is important to distinguish from the competition to stay unique. The encouraging spirit from entrepreneurs is driving the industry’s growth, but more emphasis is needed on problem-solving and the presence of mature leadership. Many firms claim to possess cutting-edge technology but come up short during pilot testing.

The Huge Expenditure on Advertising - Despite the presence of many viable channels for posting ads, the rates skyrocket with every passing day. Thus, it leads to intensive competition to grab the attention of investors. Different alternatives such as news sites, banner impressions are costing higher now. The higher importance of developing a quality product necessitates the need for a heavy expenditure on advertising. Hosting private events is a better way of getting maximum reach from advertising as there would be one-on-one interaction.

Lack of Solid Tokens - Companies want to create a positive buzz but do not concentrate on fundamental economics behind the creation of a token. This is one of the main reasons for an increase in the number of scams and failed products. Genuine ideas with valuable utility are not getting the needed publicity. Large-scale projects can be successfully completed only in the long-term. The token needs to be continuously modified in every stage of the project as per the fund-raising goals and operational complexities.

Not Focussing on Business Goals - Many firms are devoting more efforts for promoting the product and acquiring more users while forgetting the plan for executing the campaigns to fulfill business goals. Hence, ordinary firms without much financial backing and popular team members are not getting attraction from the audience. Clients prefer investing in those projects that are supported by reputed investors and venture capitalists.

Tightening of Regulations - Since ICO marketing is being increasingly scrutinized by regulatory authorities, it has limited the opportunities for firms to advertise. Hence, clarity is needed regarding the scope of marketing, location, and target audience. Different kinds of tokens, such as utility tokens and security tokens, are also being recognized differently.

Lack of Sufficient Manpower - Firms who do not foresee the potential that lies in ICO marketing do not have adequate team members to handle the huge capacity that arrives after the launch. Certain tasks such as content marketing, search engine optimization ,and social media marketing can be outsourced to experienced people. There is a need for more specialists who have a great understanding of the cryptocurrency market and ICO terminology.

Incomplete Whitepaper - If the technical document that discloses a firm’s project vision is filled with errors or copied from another source, the whole ICO marketing campaign will flop. It should be clear, transparent, and written by a well-versed professional.

All these challenges must be borne in mind by a firm before it indulges in full-fledged ICO marketing for completing projects successfully.