Airdrops have been a popular strategy used by crypto projects to attract attention and build awareness. Receiving free tokens just for being part of a project's community is a straightforward incentive that can draw investors to engage.
What makes the airdrop marketing strategy so effective? Beyond the clear appeal of free tokens, crypto fund Node Capital warns that while effective for rapid wallet growth, airdrops can be expensive with limited long-term results if not executed properly.
According to Node Capital’s "Airdropping: Some Truths" report, clear goals, communication, and a commitment of at least 10% of the token supply are crucial for success. The publication follows a review of top airdrops and their outcomes, offering guidance to help teams reach audiences and maintain engagement.
These interactions may include activities such as joining a Telegram group, following the project's social media accounts, or making small transactions within the project's ecosystem.
“Using many different Web3 platforms as real examples, they share the best metrics to track the particular goals set up for the airdrop. Measuring wallet activity, collection timelines, how widespread the tokens are distributed, new token holders, and key metrics such as DAUs and MAUs are all important, but priority should be placed on the metrics that best reflect the airdrop goals,” the report reads.
Node Capital also highlights the importance of providing incentives for users to stay engaged beyond the initial attraction of free tokens. It advises measuring key metrics before, during, and after the airdrop to ensure the campaign meets its objectives.
Creating an airdrop requires more than distributing tokens via social media, according to Node Capital. Platforms must clearly understand their goals, whether expanding the user base, encouraging user testing, converting token holders into active participants, or decentralizing the token-holding population.
The guide also outlines best practices for measuring airdrop success, using various Web3 platforms as examples. Important metrics include wallet activity, collection timelines, token distribution, new token holders, daily active users (DAUs), and monthly active users (MAUs). Priority should be given to metrics that best reflect the airdrop goals.
Additionally, Node Capital addresses the need for airdrops to fit within the platform’s tokenomics and the importance of a communication strategy to reach target audiences. It recommends handling complex aspects of airdrops, such as filtering out bad actors, preventing Sybil attacks, and ensuring the campaign reaches the ideal audience.