Airdrop Marketing Campaign and Promotion

Airdrops are a popular way for companies to fund their cryptocurrency ventures. These companies use a crypto airdrop marketing strategy that involves the free distribution of new cryptocurrency tokens in order to raise awareness and build communities quickly. By allowing users to trade their tokens, airdrops can also aid in the establishment of a token’s initial value.

This airdrop promotion is comparable to receiving a free drink from a new restaurant or a coupon from a new retailer. New projects may airdrop cryptocurrency into your wallet as part of an initial sale or as an incentive for promoting the brand.

What is an airdrop marketing campaign?

An airdrop marketing campaign is the distribution of a small number of tokens to users in exchange for completing a project-required action.

Businesses use airdrops to generate a lot of buzz about their projects. This is usually accomplished by creating a large number of wallet addresses from which people can claim and earn tokens.

Airdrop marketing is an excellent marketing strategy for cryptocurrency projects, allowing them to reach new customers in an organic and cost-effective manner. It enables you to reach 10,000+ members in all social media communities in a matter of days.

Airdrops typically require users to keep a certain number of tokens in a publicly discoverable wallet at a predetermined time (snapshot time). The snapshot would then be used by the token project conducting the airdrop to distribute the airdrop tokens accordingly.

Airdrops have the effect of allowing users to diversify their cryptocurrency holdings, raise awareness of the airdropped token, and earn an effective dividend (of their previous holdings). Most airdrop campaigns involve receiving coins or tokens in exchange for performing simple tasks such as sharing news, referring friends, or downloading an app.

Airdrop marketing campaign
An airdrop marketing campaign

Understanding cryptocurrency airdrops

The airdrop is a promotional activity typically carried out by blockchain-based startups to aid in the development of a virtual currency project. Its goal is to raise awareness about the cryptocurrency project and get more people trading in it when it launches as an initial coin offering on an exchange (ICO).

Airdrops are typically promoted on the company’s website as well as cryptocurrency forums, and the coins or tokens are sent only to current holders of crypto wallets, most commonly bitcoin or Ethereum.

To be eligible for the free gift, a recipient may need to have a certain number of crypto coins in their wallet. Alternatively, they may be required to complete a specific task, such as discussing the currency on a social media forum, connecting with a specific member of the blockchain project, or writing a blog post.

Steps for launching an airdrop marketing campaign

  1. Make your goals clear
  2. Decide how many tokens to distribute
  3. Recognize crypto airdrops users
  4. Create a presence in the community
  5. Make the process simple and verifiable
  6. Focus on quality over quantity
  7. Look for potential partners
  8. Hire a seasoned crypto airdrops marketing firm

Make your goals clear

Before you launch your crypto airdrops campaign, you must first define your goals and the activities you intend to reward to achieve them. Blockchain professionals advise project owners to avoid using a mass airdrop strategy in favor of a smart airdrop tactic. A clever airdrop strategy can assist in the formation of a small but powerful community.

Your business objectives can assist you in determining the best distribution model to use. When you want to offer your tokens to holders of specific tokens, such as Bitcoin, a business-oriented model is useful. A framework like this also allows you to distribute tokens when participants reach certain milestones.

Decide how many tokens to distribute

This step may appear simple, but it is yet another major decision that will shape your token economy for years to come. Small distributions will have little marketing and community-building impact, whereas large numbers will dilute the market value of your token, which is especially dangerous if it alienates actual token sale customers.

U Network, a blockchain publishing platform, recently ran out of tokens, forcing the platform to buy back tokens distributed via an earlier airdrop. According to MIT professor Catherine Tucker, U Network’s quandary demonstrated the difficulty of airdropping when the value of your token has not yet been determined by the free market.

Tucker recommended conservatively capping airdrop distributions until a startup’s business plan has been tested and founders can accurately predict the relationship between token supply and market value.

Recognize crypto airdrops users

It is critical to understand your target audience before distributing crypto airdrops. You’ll find a variety of resources to assist you in better understanding your users. Preparing a Google document questionnaire, for example, can help you learn a lot about your target users. This allows you to tailor your marketing solutions to the needs of your target audience.

Create a presence in the community

Campaigns utilizing the crypto airdrops strategy should concentrate on other promotion strategies that can aid in the development of an engaged community. As a result, an experienced marketing agency combines other strategies to maximize the benefits of airdrop service. Once you’ve established a community, educate it about your offering and encourage it to provide feedback on your project.

Airdrops should be part of a larger marketing and community-building campaign. There’s a reason why many bootstrapped blockchain startups continue to invest in the community and social media staff: these new companies need to educate their potential user base about the market value they have to offer, demonstrate their competency as a community-oriented company and receive feedback from the community.

It is critical to have active, well-maintained accounts on Telegram, BitcoinTalk, Twitter, Reddit, and other platforms. Your blockchain network will only thrive if there is a community of people using it, so these accounts aren’t just a marketing gimmick, but a critical component of your business model. Social gatherings are ideal places to announce and promote airdrops, identify promising community groups to target for airdrops, and prevent airdrop fraud by sharing reliable information.

Make the process simple and verifiable

Create a simple onboarding process for anyone who wishes to join your community but must first verify their identity. Make participation processes as simple as possible (for example, a Google Form) and select questions that generate relevant, reliable data such as email addresses, Telegram usernames, and so on.

Focus on quality over quantity

Traditional digital advertising can teach blockchain projects to be more selective in who they target. We should always prioritize quality over quantity when it comes to community members who drive long-term value.

Look for potential partners

An airdrop doesn’t require much in terms of equipment. Nonetheless, many startups collaborate with complementary companies and blockchain service providers because, while bare-bones airdrops are simple, executing one that adds long-term value to your token platform is difficult.

The collaboration of NEO and ONT, two prominent China-based blockchain projects, includes an airdrop component; in fact, in July, all NEO token holders received ONT airdrops. While regulators’ relationship with airdrops, like their relationship with cryptocurrency in general, is largely untested and complicated, most legal experts agree that the SEC could potentially crack down on crypto “securities” distributed for free via airdrop in the same way it cracks down on securities sold through ICOs.

Services like CoinList, which advertises compliance-oriented airdrop services, could help companies perform KYC and AML checks on airdrop clients.

Hire a seasoned crypto airdrops marketing firm

If you are unsure about airdrop crypto marketing strategy, it is best to hire an experienced marketing agency to assist you. Such a company has the professionals and tools necessary to provide the best airdrop service. They also understand how to use an airdrop strategy as a marketing tool to get the most out of it.

That’s the only thing there is to it. Once you’ve decided on these, you’re ready to launch an airdrop campaign and reap the most benefits, ensuring the success of your token launch.

Is it profitable to take advantage of an airdrop?

While an airdrop is primarily beneficial to the company that implements it, it can also be beneficial to the people who participate in such a campaign. Profits can range from a few dollars to several hundred dollars depending on the airdrop.

Of course, the total amount earned via an airdrop is determined by both the asset and your decision to book profits. In any case, it is essentially free money that can be obtained in exchange for various tasks completed.

Some people participate in multiple airdrops at the same time, allowing them to accumulate many different tokens and thus amass a sizable jackpot. However, it usually takes a long time and cannot be considered a full-time job because the amount of money obtained is never guaranteed.

What are the disadvantages of airdrops for users?

If airdrops allow you to collect money for free in the form of project tokens, there are obviously some drawbacks. Here are some of the drawbacks:

  • Certain projects may use your personal information to sell you additional products.
  • The time spent attempting to profit from an airdrop is sometimes excessive, and the rewards obtained are insufficient.
  • You may find yourself following a variety of projects on social media, causing your news feed to become unnecessarily cluttered.
  • Some airdrops are scams that seek your personal information without providing anything in return, so you must exercise extreme caution.
  • It is critical to be organized because some projects require different actions to be performed on specific dates in order to profit from the token offer, which can be difficult to manage when participating in too many airdrops at the same time.
  • It is sometimes necessary to share specific posts of a crypto company on social media, which informs your contacts that you are involved in the crypto world, which is not ideal if you want to remain discreet or avoid attracting ill-intentioned individuals.

Reasons for an airdrop marketing campaign

  1. Reaching a larger audience
  2. Marketing at a low cost
  3. Generating leads

Reaching a larger audience

An airdrop is a powerful tool for seeding a strong user community. With the shift of ICOs from public sales to private fundraising in 2018, business owners are unable to capitalize or reap the network benefits that Blockchain promises. In such cases, conducting an airdrop is beneficial because token circulation grows, and the number of users who visit the tokens’ platform grows, resulting in increased outreach.

Cryptocurrency enthusiasts tell the world that the technology is disruptive and has the potential to empower many people. However, the rate of adoption is low. As a result, crypto airdrops attempt to close the adoption gap.

Airdrop services are available on many platforms, including Reddit, Twitter, and Telegram. However, you will only be able to benefit from the service if you hire the right crypto marketing agency. And such a company knows how to run airdrop crypto campaigns on these platforms. They understand the best strategy to employ when launching the campaign.

Crypto-based services may wish to reward their customers and subscribers at times. One can reward their loyal customers by using the crypto airdrops Reddit program. These incentives can encourage your customers to spread the word about your project.

Marketing at a low cost

You can market your ICO by giving away free tokens to users through an airdrop campaign. When people discover something for free, their first instinct is to learn more about it and its utility. As a result, they will begin to learn more about your project. They will invite and encourage their friends to participate and purchase tokens. There are entire websites dedicated to allowing people to register for airdrops as soon as they are announced. Before making a contribution, potential investors consider the health of your community. Thus, airdrops benefit the community (more investment equals greater chances of success), investors (groundswell-based investment planning), and your project.

Generating leads

Lead generation is one of the most important aspects of any company’s growth and success. Organizations frequently spend large sums of money on purchasing and generating leads that do not guarantee conversions. In such cases, an airdrop is a low-cost method of lead generation in which you offer people free tokens in exchange for filling out online forms on which you can later run targeted marketing campaigns based on the user-personas of your community members to increase contribution.

Airdrop promotion service for crypto projects

Before an airdrop is launched, several factors must be considered. To begin, receiving tokens is not free; the goal is to attract and retain users.

Any project that simply distributes tokens for the purpose of promoting and increasing the usability of its products or services will quickly discover that its tokens are quickly sold off on exchanges.

Airdrops must not be performed by projects after they have been listed on exchanges. This will cause the airdropped tokens to be instantly sold, deflating the demand for them.

Projects must provide detailed instructions on how users can obtain airdropped tokens. This ensures that users follow the instructions and generates organic traffic that converts into paying customers.

Branded chats and forums should be set up for the airdrop to ensure that users know where to find the necessary information. As an alternative, the project’s website should be linked to the branded resource to generate organic traffic and generate interest in the project.

How to run an airdrop promotion program

  1. Develop a strategy for your airdrop program.
  2. Present the program to clients and obtain their approval.
  3. Ask our clients the following question (How many tokens do they intend to give away during the airdrop program? How many tokens will each participant receive if he or she is eligible for the program? Where the rewarded token will be transferred?)
  4. The duration of the airdrop program.
  5. Online program creation
  6. Collects participant information and determines eligibility.

Why do crypto projects offer airdrops?

As you might expect, a cryptocurrency project does not airdrop just to be generous. The goal of a company that conducts an airdrop is to increase its user base by making itself known to the general public.

The more people who are aware of the project, the more interest there is in its cryptocurrency.

Furthermore, in order to obtain airdrop tokens, some actions must be taken, the most common of which is to join multiple social media pages. It is intended to help the project gain credibility by attracting a larger number of followers, which is thought to be important for reassuring people on the sidelines.

Airdrops can also take place within an existing user base in some cases to reward holder loyalty or to promote a partner project.

Types of airdrops marketing campaign

  1. Standard airdrop
  2. Bounty airdrop
  3. Exclusive airdrop
  4. Holder airdrop

You can give away free tokens under a variety of conditions. The primary motivation for airdrops, however, is to motivate users. The above-listed are the most popular types of airdrop campaigns.

Standard airdrop

It is the most basic type of airdrop, in which the coin or token is delivered to the user’s wallet. Everyone is welcome to take part in standard airdrops. They are typically held to raise awareness and promote your DApp or NFT.

Bounty airdrop

Bounty airdrops, like regular airdrops, are available to anyone. To receive the token in a bounty airdrop, recipients must participate in some form of promotional activity. These tasks could include signing up for a newsletter, following you on social media, or joining your Discord or Telegram community.

Exclusive airdrop

This type of airdrop is only for your project’s most ardent supporters, who are also members of your community and have a vested interest in it. You can also collaborate with influencers or groups to create one-of-a-kind airdrops for their followers and community members.

Holder airdrop

These types of airdrops, as the name implies, are typically distributed to individuals who already own specific tokens or coins of another cryptocurrency.

See also: Nike’s Supply Chain Issues and Management

Conclusion on an airdrop marketing campaign

We hope you enjoyed this in-depth explanation of how an airdrop works and that you now have a better understanding of the logic behind such a crypto company’s marketing campaign.

Even though airdrops can be beneficial, we must remember that the people who benefit the most from them are the crypto projects themselves. However, in some cases, the money that can be obtained through an airdrop is nice and can help you top up your income with minimal effort.

FAQ on airdrop marketing campaign and promotion

What is an airdrop campaign?

The airdrop is a promotional activity typically carried out by blockchain-based startups to aid in the development of a virtual currency project. Its goal is to raise awareness about the cryptocurrency project and get more people trading in it when it launches as an initial coin offering on an exchange (ICO).

How do I promote NFT airdrop?

You publicize your ICO or NFT launch by distributing free tokens to users via an airdrop campaign. When people come across something for free, their first thought is to learn more about it. As a result, people will learn more about your project.

Can you get scammed through airdrop?

Yes, because when we look at the most common Airdrop phishing tactics used to gain access to cryptocurrency users’ digital finances. Airdrop phishing is a very popular tactic right now. It arose alongside the meteoric rise of Web3/NFT/cryptocurrency popularity, ensuring that scammers get a piece of the money pie.

What was the first crypto airdrop?

AuroraCoin (AUR) received the first cryptocurrency airdrop on March 25, 2014. Every citizen or permanent resident who submitted their national ID received 31.8 AUR, the cryptocurrency intended for the nation of Iceland.

What is an NFT airdrop?

An NFT airdrop, like other types of crypto airdrops, rewards NFT holders with additional tokens. This is done to strengthen the community surrounding specific NFTs, generate buzz, and reward NFT holders.

How are airdrops taxed?

Airdrop rewards are taxed as ordinary income at their fair market value at the time of receipt. If you dispose of your tokens, you will only be required to incur capital gains or losses based on how the price of your tokens has changed since you received them.

Last Updated on November 2, 2023 by Nansel Nanzip Bongdap
Entrepreneur at Financial Falconet | Author's Bio Page

Nansel is a serial entrepreneur and financial expert with 7+ years as a business analyst. He has a liking for marketing which he regards as an important part of business success.
He lives in Plateau State, Nigeria with his wife, Joyce, and daughter, Anael.