Last year, actor Ranveer Singh channeled his inner “Gully Boy” through one of CoinSwitch Kuber’s #KuchTohBadlega commercials. Through his desi rap “Mar mar ke jeena ka nahi toh dar dar ke jeena ka nahi” he convinced his gang playing Carrom to invest in cryptocurrency. And the boys joined in singing “Apna time aa gaya bhai” to Singh’s “Ab kya bol reli public?” This promotional film sort of sums up the cryptocurrency category in India.
To capture the pulse of youth and dig deeper into the land, crypto brands have used the power of celebrities to make noise. From Ranveer Singh, Ayushmann Khurrana, Keerthy Suresh, Dinesh Karthik to an army of major and micro influencers have been pushing crypto brands since last year. While this trend was just taking off, these brands’ marketing strategies were collapsing somewhat.
Last month, the Securities Exchange Board of India (SEBI) wrote a letter to the parliamentary Standing Committee on Finance to block celebrities from supporting a sector that is inherently fickle. The Advertising Standards Council of India (ASCI) stepped in to claim that celebrities would be held accountable if the ads were found to be misleading. It said: “Actors must fulfill their duty of care”. But do they?
The rules of crypto advertising
According to Manisha Kapoor, ASCI’s general secretary and chief executive officer, until now there has been no law prohibiting them from making endorsements on issues “of a volatile nature”. “Because celebrities enjoy large followings and their words have the potential to influence people, they must use diligence to understand a subject they have no expertise in. By law, all endorsers are responsible for the brands and services they promote,” Kapoor informs. Of course, ASCI has no legal powers to remedy complaints or remove advertisements from the digital platform.
As of April 1st this year, ASCI required all virtual digital assets (VDAs), commonly referred to as crypto or non-fungible tokens (NFTs), to add the disclaimer: “Crypto products and NFTs are unregulated and can be very risky . There may be no regulatory recourse for losses from such transactions.” This needs to be conveyed “prominently and conspicuously” in campaigns for products and services.
According to Kapoor, disclaimers must be designed in such a way that they are not overlooked by consumers. No small writing and writing, practically illegible writing. The guidelines mention how the disclaimer must appear in online, print, television, audio, or social media advertisements.
She explains: “The disclaimer must also be in the predominant language of the ad. Failure to follow these will leave the celebrity unaware of the guidelines and if the advert is found to be misleading, they may be prosecuted under the Consumer Protection Act 2019. This includes fines and suspension of product endorsements.”
Addressing the big P of marketing – product
Harish Bijoor, brand guru and founder of Harish Bijoor Consults Inc. believes that crypto products, not their “advertising,” are needed to make their voices heard. “New brands need to rely on direct contact programs, either through WhatsApp advertising or through various other digital means,” he says.
Crypto brands are already changing their marketing. For example, CoinSwitchKuber has collaborated with financial influencers like Rachana Ranade, Pranjal Kamra, and Sharan Hegde for educational content only. According to Sharan Nair, the brand’s Chief Business Officer, this is critical to helping consumers make informed investment decisions. In the case of influencers, ASCI has asked to add the “Paid Partnership” tag when creating branded content so there are no ambiguities.
Brands like CoinDCX, WazirX, and ZebPay are also currently focusing on content marketing.
Bijoor states that some categories would gradually become no-touch categories for brand supporters due to regulatory intervention. “And the cryptocurrency category is one of them,” he notes. With cryptocurrency policies and their respective endorsements, it is time to see how the sector would fare when celebrity endorsements were no longer in existence.”
Codes about strategies
Kapoor emphasized that marketers should be familiar with the ASCI code. In order for them to have more confidence in their ads, they need to consult on the ad script before rolling it out for production. She explained that following ASCI guidelines would provide consumers with some level of protection as they clearly state certain do’s and don’ts. Kapoor says: “No advertising should show that understanding VDA products is so easy that consumers don’t have to think twice about investing in them. Nothing in the ad should downplay the risks associated with the category.”
Information contained in advertisements must not contradict the information or warnings that the regulated companies make available to customers. Advertisements that inform about the cost or profitability of VDA products must contain clear, accurate, sufficient and up-to-date information, she explains.
“For example, ‘free’ must include any cost that the consumer could reasonably associate with the offering or transaction. Past performance information must not be provided in a partial or biased manner. Returns for periods less than 12 months are not included,” ASCI’s CEO tells Storyboard18.
There is still plenty of room for crypto brands to market themselves. Responsible marketing versus mass marketing should be at the heart of strategies. As the category evolves, innovation in advertising will be key. Right now, smart marketing is on the charts for crypto brands to explore and grow.