Measuring the Success of Your Tokenization Marketing Campaign: Key Metrics and KPIs

Karolina

13 Jul 2023
Measuring the Success of Your Tokenization Marketing Campaign: Key Metrics and KPIs

As the world continues to swiftly adapt to blockchain technology, artificial intelligence, and cryptocurrency, the innovative idea of tokenization has come forward with the potential to profoundly transform various sectors. Tokenization involves representing tangible assets or rights within the digital realm via tokens on a blockchain. In order to effectively capitalize on tokenization's advantages, businesses must implement strong marketing campaigns that generate awareness, entice investors, and encourage widespread adoption.

Nonetheless, initiating a successful tokenization marketing campaign is merely the beginning. Companies need to assess their campaigns' success to gauge the efficacy of their tactics, refine future endeavors, and substantiate their worth to stakeholders. In this article, we aim to offer an exhaustive evaluation of critical metrics and key performance indicators (KPIs) that can be employed to determine a tokenization marketing campaign's success.

Throughout this article, various essential metrics and KPIs will be discussed in detail so as to assess the effectiveness of tokenization marketing campaigns. We will cover a range of indicators, from reach and engagement metrics to conversion rates and social media analytics. 

Essential Metrics for Evaluating the Effectiveness of a Tokenization Marketing Campaign

It is crucial to thoroughly examine essential metrics to determine the success of a tokenization marketing campaign. By monitoring and evaluating these metrics, businesses can determine their campaign's reach, engagement, conversion, influence on social media, and content performance. The following are the critical metrics to be considered when evaluating a tokenization marketing campaign's success:

Metrics Related to Reach

Metrics Related to Reach

1. Aggregate impressions. The cumulative count of times the campaign content is viewed by the target audience through numerous channels like social media, websites, and advertising platforms.

2. Scope on social media. The unique users' count who have come across the campaign content on various social media platforms provides insights into visibility and possible audience size.

3. Traffic to the website. The overall visitor count to dedicated landing pages or websites for the campaign helps assess how effective it is in driving traffic and capturing interest.

Metrics Associated with Engagement

Metrics Associated with Engagement

1. CTR (Click-through rate). The fraction of individuals who click a specific call-to-action or link within the campaign content gauges how effective it is in generating interest and encouraging engagement.

2. Average session length. The mean duration users spend on landing pages or the campaign's website indicates their engagement level and interest in the campaign.

3. Bounce rate. The fraction of visitors departing from landing pages or the campaign's website without performing any action implies issues with relevance or compelling content when higher.

Metrics Pertaining to Conversions

Metrics Pertaining to Conversions

1. Total conversions. Actions completed by users like subscribing to newsletters, downloading whitepapers, or making purchases indicate a campaign's capability in driving desired results.

2. Rate of conversions. A higher rate showing what percentage of visitors complete desired actions or conversions reflects a more effective campaign in persuading users.

3. Expense per conversion. Tracking average cost per acquired conversion assists in measuring campaign efficiency and cost-effectiveness for generating desired outcomes.

Metrics on Social Media

Metrics on Social Media

1. Growth in followers. The rise in followers on social media platforms during a campaign serves as a testament to its ability to appeal and engage audiences.

2. Engagement rate. Measuring user interactions with campaign content on social media platforms, such as likes, shares, comments, and mentions, demonstrates the campaign's success in resonating with audiences.

3. Mentions on social media. The number of times the brand or campaign is cited on social media platforms indicates its visibility, reach, and impact on respective channels.

Read our article about Leveraging Social Media

Content Metrics

Content Metrics

1. Views for blog posts. The count of views or visits to a campaign's blog posts helps evaluate engagement and interest among potential investors or stakeholders.

2. Downloads of whitepapers. Quantifying downloads or access requests for detailed project documentation offers insights into a campaign's potential for generating interest from investors or stakeholders.

3. Video view count. Summing views of videos pertinent to the campaign reflects success in capturing audience curiosity and engagement.

By closely examining these crucial metrics, businesses can extract valuable information regarding their tokenization marketing campaigns' performance and effectiveness. Utilizing quantifiable data benefits decision-making, tactical optimization, and achieving objectives for the campaign.

Essential Key Performance Indicators (KPIs) for Evaluating the Effectiveness of a Tokenization Marketing Campaign

Key metrics offer specific data points to gauge the performance of a tokenization marketing campaign, whereas key performance indicators (KPIs) deliver a more comprehensive understanding of the campaign's overall effectiveness. KPIs enable the assessment of the campaign's influence on key business goals and supply valuable insights for informed strategic decisions. The following KPIs should be considered when evaluating the success of a tokenization marketing campaign:

Expansion in Token Holders

1. Quantity of new token holders. The aggregate number of new individuals or organizations that obtain and possess the token throughout the campaign. This demonstrates the campaign's capacity to attract new investors and broaden the token holder foundation.

2. Growth percentage of token holders. The percentage at which the number of token holders rises within a particular time frame. This demonstrates the campaign's competency in promoting adoption and enlarging the token's user base.

Market Capitalization

1. Overall market capitalization. The combined value of all tokens circulating during the campaign, arrived at by multiplying token price with total supply. It represents market value and general perception of the token.

2. Market capitalization growth rate. The percent increase in market capitalization for tokens over a specific period. This highlights the campaign's abilities to stimulate demand, elevate token value, and captivate investors.

Brand Awareness

1. Brand references in media. The frequency with which news articles, blogs, interviews, or other media platforms allude to the campaign or brand. This symbolizes the campaign's contributions toward elevating brand visibility and awareness.

2. Favorable sentiment in media coverage. The portion of media citations that express a positive perspective regarding the campaign or brand. It signifies the campaign’s efficacy in creating an agreeable public opinion.

Investor Confidence

1. Number of alliances or collaborations. The count of strategic alliances or collaborations formed during the campaign. This proves the campaign's capability to foster trust, draw respected partners, and boost investor confidence.

2. Increase in investment inquiries. The percentage growth in potential investors' inquiries or expressions of interest from institutions. This highlights the campaign's proficiency in seizing investor attention and producing investment prospects.

By scrutinizing these key performance indicators, companies can evaluate the overall success and impact of their tokenization marketing campaigns. These KPIs offer a comprehensive perspective on the campaign's performance, aligning with business targets such as investor growth, trading activity, market perception, brand visibility, and investor confidence. Utilizing these insights, businesses can fine-tune their strategies, pinpoint areas requiring enhancement, and achieve sustained success within the tokenization ecosystem.

Conclusion

It is essential for businesses aspiring to excel in the blockchain, AI, and cryptocurrency sectors to measure the success of their tokenization marketing campaigns. Assessing the reach, engagement, conversion, social media influence, and overall performance of campaigns can be achieved by employing key metrics and key performance indicators (KPIs). 

Valuable insights into campaign effectiveness can be obtained by examining metrics such as impressions, conversion rates, mentions on social media, and website traffic. Furthermore, KPIs like token holder growth, trading volume, market capitalization, brand awareness, and investor confidence offer a comprehensive understanding of the campaign's influence on vital business objectives.

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Aethir Tokenomics – Case Study

Kajetan Olas

22 Nov 2024
Aethir Tokenomics – Case Study

Authors of the contents are not affiliated to the reviewed project in any way and none of the information presented should be taken as financial advice.

In this article we analyze tokenomics of Aethir - a project providing on-demand cloud compute resources for the AI, Gaming, and virtualized compute sectors.
Aethir aims to aggregate enterprise-grade GPUs from multiple providers into a DePIN (Decentralized Physical Infrastructure Network). Its competitive edge comes from utlizing the GPUs for very specific use-cases, such as low-latency rendering for online games.
Due to decentralized nature of its infrastructure Aethir can meet the demands of online-gaming in any region. This is especially important for some gamer-abundant regions in Asia with underdeveloped cloud infrastructure that causes high latency ("lags").
We will analyze Aethir's tokenomics, give our opinion on what was done well, and provide specific recommendations on how to improve it.

Evaluation Summary

Aethir Tokenomics Structure

The total supply of ATH tokens is capped at 42 billion ATH. This fixed cap provides a predictable supply environment, and the complete emissions schedule is listed here. As of November 2024 there are approximately 5.2 Billion ATH in circulation. In a year from now (November 2025), the circulating supply will almost triple, and will amount to approximately 15 Billion ATH. By November 2028, today's circulating supply will be diluted by around 86%.

From an investor standpoint the rational decision would be to stake their tokens and hope for rewards that will balance the inflation. Currently the estimated APR for 3-year staking is 195% and for 4-year staking APR is 261%. The rewards are paid out weekly. Furthermore, stakers can expect to get additional rewards from partnered AI projects.

Staking Incentives

Rewards are calculated based on the staking duration and staked amount. These factors are equally important and they linearly influence weekly rewards. This means that someone who stakes 100 ATH for 2 weeks will have the same weekly rewards as someone who stakes 200 ATH for 1 week. This mechanism greatly emphasizes long-term holding. That's because holding a token makes sense only if you go for long-term staking. E.g. a whale staking $200k with 1 week lockup. will have the same weekly rewards as person staking $1k with 4 year lockup. Furthermore the ATH staking rewards are fixed and divided among stakers. Therefore Increase of user base is likely to come with decrease in rewards.
We believe the main weak-point of Aethirs staking is the lack of equivalency between rewards paid out to the users and value generated for the protocol as a result of staking.

Token Distribution

The token distribution of $ATH is well designed and comes with long vesting time-frames. 18-month cliff and 36-moths subsequent linear vesting is applied to team's allocation. This is higher than industry standard and is a sign of long-term commitment.

  • Checkers and Compute Providers: 50%
  • Ecosystem: 15%
  • Team: 12.5%
  • Investors: 11.5%
  • Airdrop: 6%
  • Advisors: 5%

Aethir's airdrop is divided into 3 phases to ensure that only loyal users get rewarded. This mechanism is very-well thought and we rate it highly. It fosters high community engagement within the first months of the project and sets the ground for potentially giving more-control to the DAO.

Governance and Community-Led Development

Aethir’s governance model promotes community-led decision-making in a very practical way. Instead of rushing with creation of a DAO for PR and marketing purposes Aethir is trying to make it the right way. They support projects building on their infrastructure and regularly share updates with their community in the most professional manner.

We believe Aethir would benefit from implementing reputation boosted voting. An example of such system is described here. The core assumption is to abandon the simplistic: 1 token = 1 vote and go towards: Votes = tokens * reputation_based_multiplication_factor.

In the attached example, reputation_based_multiplication_factor rises exponentially with the number of standard deviations above norm, with regard to user's rating. For compute compute providers at Aethir, user's rating could be replaced by provider's uptime.

Perspectives for the future

While it's important to analyze aspects such as supply-side tokenomics, or governance, we must keep in mind that 95% of project's success depends on demand-side. In this regard the outlook for Aethir may be very bright. The project declares $36M annual reccuring revenue. Revenue like this is very rare in the web3 space. Many projects are not able to generate any revenue after succesfull ICO event, due to lack fo product-market-fit.

If you're looking to create a robust tokenomics model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.

Nextrope Partners with Hacken to Enhance Blockchain Security

Miłosz

21 Nov 2024
Nextrope Partners with Hacken to Enhance Blockchain Security

Nextrope announces a strategic partnership with Hacken, a renowned blockchain security auditor. It marks a significant step in delivering reliable decentralized solutions. After several successful collaborations resulting in flawless smart contract audits, the alliance solidifies the synergy between Nextrope's innovative blockchain development and Hacken's top-tier security auditing services. Together, we aim to set new benchmarks, ensuring that security is an integral part of blockchain technology.

Strengthening Blockchain Security

The partnership aims to fortify the security protocols within blockchain ecosystems. By integrating Hacken's comprehensive security audits with Nextrope's cutting-edge blockchain solutions, we are poised to offer unparalleled security features in our projects.

"Blockchain security should never be an afterthought"

"Our partnership with Hacken underscores our dedication to embedding security at the core of our blockchain solutions. Together, we're building a safer future for the industry."

said Mateusz Mach, CEO of Nextrope

About Nextrope

Nextrope is a forward-thinking blockchain development house specializing in creating innovative solutions for businesses worldwide. With a team of experienced developers and blockchain experts, Nextrope delivers high-quality, scalable, and secure blockchain applications tailored to meet the unique needs of each client.

About Hacken

Hacken is a leading blockchain security auditor known for its rigorous smart contract audits and security assessments. With a mission to make the industry safer, Hacken provides complex security services that help companies identify and mitigate vulnerabilities in their applications.

Looking Ahead

As a joint mission, both Nextrope and Hacken are committed to continuous innovation. We look forward to the exciting opportunities this partnership will bring and are eager to implement a more secure blockchain environment for all.

For more information, please contact:

Nextrope

Hacken

Join us on our journey to deliver top-notch blockchain tech and a safer future for the industry!