## Outside the App Store: How Exchanges Break Through in the Web3 Advertising War

When it comes to crypto exchange advertising, you might be quite familiar with it—15-second ads suddenly popping up on TikTok, recommended spots on app store homepages, sponsored content on social media platforms. Behind these ads is a new wave of efforts by exchanges to break the user growth bottleneck.

### From the Edge Departments to Core Business

For a long time, user growth at exchanges has been led by the BD department, responsible for connecting with project teams, maintaining communities, and collaborating with KOLs, achieving viral growth through channels like referral leaders. However, as the industry matures, these tactics are gradually losing effectiveness—public data shows that a leading exchange had 250 million registered users by the end of 2024, a 47% increase over 2023, but the growth rate has clearly slowed.

As traditional channels become saturated, exchanges are turning to a less-known department: **Paid ads**. This team operates parallel to BD but with a completely different function—they are tasked with acquiring new users through paid advertising on app stores, Google, TikTok, Facebook, and other media platforms at the most optimal cost.

Mid-sized exchanges typically allocate around $2 million annually to Paid ads, while top-tier exchanges invest several times more. In comparison, Google’s 2025 advertising budget is $8.7 billion, and Amazon’s is $31 billion. Web3 exchanges are still in the early stages. But the key point is, for mature platforms, this money has shifted from an “option” to a “necessity.”

### App Store Effectiveness: $50 Cost Is Industry Standard

The effectiveness of advertising varies significantly across media platforms. Industry insiders reveal that **app stores are currently the most effective channel, much more efficient than direct placements by phone manufacturers**. For large media platforms, the cost to convert an ad into a new user has dropped to around $50, thanks to optimization on quality channels like app stores.

This cost may seem high, but from an ROI perspective, a $1 million investment can typically break even within six months. The ad teams adjust in real-time based on platform algorithms and audience targeting, deploying incentivized content like first-trade rewards for young users or emphasizing Bitcoin’s historical returns and the advantages of crypto assets, effectively attracting outside-the-circle users.

Meanwhile, the Paid ads team is small but highly specialized. Most exchanges have teams of no more than 20 people, relying on a combination of self-investment and agency outsourcing, responsible for content creation, performance tracking, and multi-platform ad placement. This lightweight structure controls costs while covering multiple markets globally.

### Regulatory Red Lines Limit Growth Ceiling

The real obstacle to Paid ads development remains regulatory policies. The US, Hong Kong, the UK, Canada, and other regions explicitly ban non-compliant exchanges from advertising, with even content restrictions varying—some areas allow spot trading ads but prohibit futures or stablecoin-related financial products. Some exchanges attempt to disguise content to evade review, but the risks are high.

Conversely, countries like South Korea, Vietnam, and Turkey have relatively relaxed regulations, leading to higher ad spend. However, on a global scale, most mainstream media platforms remain cautious about Web3 advertising, preventing exchanges from reaching the scale seen in Web2 companies.

### The Next Battle: Budget, User Understanding, and Growth Wisdom in a Triangular Game

Industry consensus is clear: **The core challenge for Web3 remains user growth**. Amid regulatory costs and uncertain conversion rates, the Paid ads model is still in exploration, but for leading platforms, it’s no longer optional—it’s a necessary path.

As traditional BD methods fade, quality channels like app stores become new battlegrounds. The next round of competition will not only test who has deeper budgets but also who understands user needs better and who masters growth strategies. The real contest has just begun.