Coinbase’s QR-code Super Bowl Crashes App & Cashes In Coinbase’s ad in the Super Bowl last night. But as a revenue leader, I was curious about the ROI. Check out these numbers:
• Firstly, 117M people watched.
• Secondly, 20% scan the QR code (the chief product officer said the page got 20M visits in 1 minute).
• Thirdly, a 10% signup.
• 20% of them link their bank account
• Lastly, = ~500k new customers.
What’s 500k customers worth to Coinbase? Does that cover the $14M spent on the ad?
According to their last quarterly report, the average customer generates $90 in revenue per year for them. Furthermore, let’s say these Super Bowl customers are half as valuable (lower intent).
$45 revenue per user x 500,000 new users = $22.5M
In conclusion that would make the ad Return on Equity positive! This advertisement will go down as one of the most successful ever to air. Moreover, the question arises. Is this a new model for advertising? Lastly, focusing on directly signing up the customer, no more subtle hinting at a product. However, another question arises. Over time will this highly aggressive and direct approach turn off customers?