What are the key insights from the MBA case study on Polygon’s user acquisition?
The recent MBA case study from IVEY Publishing offers a comprehensive analysis of Polygon's effective strategies for user acquisition in the Web3 space. By utilizing Cost Per Wallet (CPW) metrics, the study reveals that Polygon successfully maintained an average user acquisition cost below one dollar. This significant achievement is attributed to collaborations with Addressable, a platform that has changed the approach to marketing in the blockchain sector.
The study, titled "Polygon Scaling Web3 Growth with Cost Per Wallet Efficiency," meticulously examines vast amounts of on-chain data. It highlights how targeting at the wallet level and attribution modeling provide a clearer picture of user engagement than traditional marketing metrics, such as impressions and social media interactions.
How did Polygon achieve user acquisition efficiency?
Polygon effectively utilized Addressable’s innovative technology to identify and engage "wallet-ready" users in sectors such as NFTs, decentralized finance (DeFi), gaming, and enterprise collaborations. Each segment showed distinct acquisition costs. NFT campaigns were remarkably efficient, bringing on more than 14 million wallets at costs ranging between approximately $0.20 and $0.50 per wallet. Conversely, the gaming sector acquired around 500,000 wallets at a cost of $12 per wallet, while enterprise partnerships yielded costs between $5 and $10 per wallet. Notably, DeFi presented the highest user acquisition costs, fluctuating between $50 and $100 per wallet. These elevated costs were largely driven by liquidity incentives with retention rates that declined significantly after the incentives ceased.
Why is this study significant for blockchain marketing?
The insights from this case study are crucial at a time when blockchain entities are increasingly under the microscope from both investors and regulatory authorities. The study aims to provide transparency and credibility to the elusive concept of true blockchain adoption. It reinforces the argument that Web3 marketing necessitates fresh models that prioritize understanding user behavior rather than defaulting to established Web2 strategies. The findings offer a robust framework that MBA students and future executives can rely upon as they navigate the evolving landscape of blockchain growth.
By showcasing rigorous financial metrics, this study establishes CPW as a new power metric for evaluating user acquisition in the blockchain domain. The expectation is that business schools around the world will incorporate this insightful research into their curricula, helping shape a new generation of leaders equipped to tackle the complexities of digital economies.