Addressable launches cost per wallet (CPW), a new metric aimed at improving user acquisition tracking for DApps

The company claims CPW provides a more precise measure of user engagement compared to traditional Web2 marketing

Web3 marketing firm Addressable has launched cost per wallet (CPW), a new metric that aims to improve user acquisition tracking for decentralized applications (DApps) and blockchain businesses, the company announced on Jan. 21.

The company claims that the new metric provides a more precise measure of user engagement compared to traditional Web2 marketing, which uses metrics such as customer acquisition cost (CAC) and cost per click (CPC) to track user engagement.

A lower CPA means customer acquisition is more efficient, while a lower CPC indicates that businesses are implementing more cost-effective ad campaigns.

However, Addressable claims that CPW would allow businesses to determine which users are “high-value” and are more likely to get converted into their marketing funnels, ultimately helping them optimize their marketing efforts and avoid “bots.”

Users with wallets more likely to convert to crypto products

Addressable chief operating officer and co-founder Asaf Nadler told Cointelegraph that their analysis data showed that users who have a wallet are more likely to convert to crypto products:

"This makes CPW a more effective metric in the long run. Traditional metrics like CPC or CPM often fail to identify which users have high intent and which ones are simply low-quality traffic, like users who may not be interested in their products."

He added:

"For the first time, crypto companies can accurately measure which campaigns drive engaged, high-value users, rather than wasting resources on bots or 'normies' who are unlikely to convert."

In a press release, Addressable said the new Web3-native acquisition metric could help crypto projects to "easily track how many users become active participants in DeFi protocols, wallets or exchanges."

Effect of wallet ownership on engagement, logins and conversions. Source: Addressable

The company also noted that the new metric could be used to measure the effectiveness of influencer marketing campaigns, which are becoming increasingly popular in the crypto industry.

“We are excited to introduce CPW as the definitive metric for user acquisition in Web3. By shifting the focus from ad clicks to engaged wallet users, we can provide a true measure of campaign success and help brands maximize their ROI,” said Nadler.

While CPW primarily targets retail user acquisition, the broader crypto industry is also shifting focus toward institutional adoption.

Etherealize, a marketing firm backed by the Ethereum Foundation, launched to educate institutions on blockchain and Ether (ETH), as reported by Cointelegraph.

Etherealize co-founder Grant Hummer said the company wants to bring “all of Wall Street onto Ethereum rails.”