Turning a brand into a household name | Steven Kalifowitz (Crypto.com)
Nov 19, 2024
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Steven Kalifowitz, CMO of Crypto.com, shares his journey from HBO to one of crypto's leading brands. He dives into the art of transforming a brand amid regulatory hurdles and discusses managing million-dollar marketing budgets. There's insight on differentiating casual from heavy users and leveraging live sports for visibility. Kalifowitz also debunks myths around NFTs and explores the importance of authenticity in branding. His expertise in managing brand narratives shines as he emphasizes the need for constant engagement and strategic partnerships to foster trust.
Steven Kalifowitz emphasizes the need for a billion-dollar marketing budget to elevate brand presence in the competitive crypto market.
Partnerships with major sports leagues effectively align cryptocurrency brands with prevalent consumer interests, enhancing engagement and investment likelihood.
Understanding customer behavior through data analytics allows targeted marketing strategies for casual and heavy users, optimizing overall customer experience.
A comprehensive brand strategy blueprint is essential for maintaining a cohesive identity and aligning internal culture with external messaging in evolving industries.
Deep dives
Growth in Brand Awareness
Brand awareness among the general population has significantly increased, rising from below 50% among crypto users to over 80% overall. This growth indicates a shift in public perception regarding cryptocurrencies, transitioning from a wild west image to recognition as legitimate businesses. Marketers have effectively highlighted their focus on developing sustainable, credible brands rather than merely trading in volatile markets. Notably, efforts to capture the attention of sports fans have shown that these individuals are more likely to invest in cryptocurrencies, demonstrating the successful alignment of interests.
The Power of Sports Sponsorships
Live sports are the primary form of entertainment that people engage with together, making this an effective channel for brand growth. Partnerships with major leagues such as the NBA have proven beneficial, as fans show a higher likelihood of considering cryptocurrency investments when there's alignment with their favorite sports. By strategically sponsoring events and teams, brands have positioned themselves as integral parts of the culture surrounding these sports. This not only helps in awareness generation but also fosters deeper connections with potential customers.
Investment in Marketing
One of the notable shifts has been the massive marketing budget allocated to elevate brand presence, reportedly around a billion dollars, with significant sums directed towards high-visibility events and sponsorships. For instance, the rebranding of the Staples Center to Crypto.com Arena was part of a broader strategy to enhance market visibility and instill trust in the brand. Marketing strategies have included engaging major celebrities and influencers, as evidenced by high-profile collaborations with athletes and artists like Eminem. This approach has resulted in substantial brand reach and resonance within the target market.
Importance of Brand Strategy
A comprehensive brand strategy blueprint is vital for companies to articulate their mission, vision, and values clearly, ensuring brand consistency. Successful leaders recognize the importance of crafting a strong brand narrative that aligns internal culture with external messaging. Establishing a cohesive identity helps companies gain competitive advantages, particularly in evolving industries like crypto. Through regular exercises in brand strategy development, companies ensure they remain aligned with customer expectations and market demands.
Segmentation of Customer Data
Understanding customer behavior through data analytics is crucial for tailoring marketing strategies effectively. Companies benefit from segmenting their user base to target casual users differently than heavy users, allowing for more personalized marketing efforts. Continuous testing and learning are essential to optimizing outreach and ensuring marketing messages resonate with different customer segments. This segmentation allows organizations to refine their engagement strategies and improve overall customer experience.
Navigating Brand Reputation
Managing the brand's narrative is essential, especially in markets as dynamic and scrutinized as cryptocurrency. Proactive brand management tells a compelling story that counters negative perceptions while building trust and credibility. A consistent, genuine approach to branding reassures both current and potential customers that the business aligns with their values and needs. The approach emphasizes the brand's stability and longevity amidst market turbulence.
Measuring Impact and Success
Evaluating the effectiveness of marketing investments involves comprehensive tracking of brand awareness and customer acquisition metrics. By utilizing third-party firms to conduct periodic brand awareness research, companies can gauge the impact of their marketing initiatives on public perception. Analyzing how sponsorships affect brand preference among various demographics allows for data-driven decision-making. Ultimately, the ability to link marketing efforts to tangible results validates the efficacy of brand strategies.
Future Perspectives on NFTs
Despite fluctuating interest levels in the NFT market, there remains a belief that NFTs will evolve to solve real-world problems around ownership and authenticity. The concept of integrating NFTs into existing platforms or creating new use cases continues to gain traction, with potential applications in ticketing and digital assets. As technology matures, it is expected that NFTs will find ways to integrate seamlessly into industries such as entertainment and finance. The ongoing exploration of how to leverage blockchain technology suggests that NFTs are far from being dead but are instead in a phase of transformation.
How do you transform a brand into a household name, especially when that brand has a lot of regulatory restrictions?
Steven Kalifowitz is doing just that right now with @CryptoComOfficial . When he came on board as the Crypto.com CMO in 2020, he brought years of experience as an Emmy-winning production manager for HBO and lessons from being a Director of Brand Strategy for Twitter.
Along with discussing his strategy for transforming Crypto.com into a household name, Steven and Tim also discussed:
00:00 Intro
01:29 Managing million-dollar marketing budgets
05:58 The importance of continued awareness for established brands
13:05 Understanding and nurturing casual vs heavy customers
19:02 Buying the Crypto.com name
21:24 Becoming CMO of Crypto.com
24:58 Are brand strategy blueprints necessary?
34:44 Marketing a brand vs a commodity
53:57 Using live sports as a marketing tool
56:29 Are competitor pages useful?
58:56 How the Crypto.com marketing team is structured
1:05:42 What does Steven do as CMO of Crypto.com?
1:10:43 Leadership and management skills
1:18:48 Advertising at the Sphere and getting around advertising restrictions
1:26:35 Sports partnerships
1:33:45 Celebrity brand films
1:41:54 Are NFTs dead?
1:45:53 Outro
We hope you enjoyed this episode of Ahrefs Podcast! As always, be sure to like and subscribe (and tell a friend).
Where to find Steven:
LinkedIn: https://www.linkedin.com/in/skalifowitz/
X: @skalifowitz
Where to find Tim:
LinkedIn: https://www.linkedin.com/in/timsoulo/
X: @timsoulo
Website: https://www.timsoulo.com/
_________________________________________________
Referenced in this episode:
Byron Sharp - How Brands Grow: https://brandgenetics.com/human-thinking/how-brands-grow-speed-summary/
CPG/FMCG: https://cdp.com/glossary/cpg-marketing/
https://www.investopedia.com/terms/f/fastmoving-consumer-goods-fmcg.asp
Fortune Favors the Brave ft. Matt Damon: https://youtu.be/9hBC5TVdYT8?si=qrj6nOB-VDY1yY5W
David Oglivy: https://en.wikipedia.org/wiki/David_Ogilvy_(businessman)
Andy Gove - High Output Management: https://en.wikipedia.org/wiki/High_Output_Management
Patrick Lencioni - Five Dysfunctions of a Team: https://www.tablegroup.com/topics-and-resources/teamwork-5-dysfunctions/
Dale Carnegie - How to Win Friends and Influence People: https://en.wikipedia.org/wiki/How_to_Win_Friends_and_Influence_People
Andy Gove - Only the Paranoid Survive: https://www.goodreads.com/book/show/66863.Only_the_Paranoid_Survive
Inevitable ft. Eminem: https://x.com/Eminem/status/1783859123614052845
The Moment of Truth ft. Lebron James: https://youtu.be/xynQFsPBE3w?si=5Xxr_Q3qacsR6BpV
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