Crypto gaming and gambling ads have emerged as the most expensive user acquisition channels in the crypto world, according to a new report from Web3 marketing firm Addressable. The study, based on 200 programmatic campaigns across 70 advertisers, found that crypto gaming and gambling had a median cost per wallet (CPW) of $8.74—far higher than other sectors like DeFi or CeFi.

CPW measures the cost of acquiring users who already have crypto wallets, making it a valuable metric for targeting high-intent users. While DeFi and CeFi campaigns reported a median CPW of just $2.79, gaming and gambling campaigns suffered from high churn, speculative user behavior, and intense competition.

Asaf Nadler, co-founder of Addressable, suggested that despite Web3 gaming being seen as the future, current acquisition strategies are unsustainable. “We need a better user acquisition engine to reach Web2 levels of sustainability,” he said.

Still, industry voices like Axie Infinity co-founder Jeff “JiHo” Zirlin see high CPW periods as a time for innovation and market consolidation. He urged developers to use this time to prepare for future growth.

The report also revealed geographic trends. In premium markets like the US and Western Europe, CPW surged dramatically in 2024—rising 4x and 27x respectively between Q1 and Q3—making user acquisition there much more expensive during bear markets. In contrast, emerging markets such as Latin America and Eastern Europe showed low CPWs during favorable conditions but were highly volatile.

These findings highlight the rising cost of crypto marketing and the urgent need for more efficient strategies, especially in gaming, to avoid being outspent in a hyper-competitive space.