Last year, Meta announced they were working on an – for many – extremely abstract environment, the Metaverse. You also hear more and more about artificial intelligence, digital art and NFTs. Online blogs, opinion pieces, and trend updates all contain an abundance of it. Does it still sound like gibberish? Then it is interesting to dive into it. These developments provide a bunch of new marketing opportunities. NFTs; what are they, what can you do with them, and how do you incorporate them into a marketing strategy?
What are NFTs
NFT stand for Non-Fungible Tokens, which is an irreplaceable, not convertible, digital file with ownership rights Those that are familiar with this term, know it is a unique digital file that is stored in the blockchain, a digital cash book. So, an NFT is a digital item that is not exchangeable, whereas fiat money or crypto coins like Bitcoin are. NFTs do can be bought and sold. However, it is impossible to trade one piece of digital art for another. Often, NFTs are digital files like photos, videos, images, audio files, or collector items. A famous example of an NFT is the Bored Ape Yacht Club collection. It is a series of 107 digital pieces of art depicting cartoon apes. These were sold in 2021 for no less than 24.4 million dollars. But NFTs go beyond that. For example, there are also NFTs for source codes of popular applications or websites.
What characterises an NFT
The uniqueness of an NFT makes it so valuable. It is its most important aspect. When someone buys an NFT, they receive a smart contract that includes a bunch of information about the NFT. It means i.a that the buyer is the only one with ownership rights. Others can view the registration but not alter it. It does not concern the MP3 file or an online video. Instead, the digital ‘key’ ensures you have the sole ownership rights of the NFT. Nobody else. The digital record publicly shows who created the file, offered it as NFT, and bought it.
Another unique characteristic of an NFT is that the sale is decentralised. So, there is not a singular party that regulates everything and has the power. As a matter of fact, there are numerous marketplaces and blockchains. The NFTs can only be bought via special marketplaces. Since so many computers and servers are involved in processing the NFTs, the system is difficult to hack or manipulate.
Why are NFTs worth so much?
24.4 million dollars, 82 million dollars, and 69.3 million dollars. We are not kidding. These are examples of figures that people pay for these digital ownership rights. The NFT marketplaces are even branded as a multi-billion dollar industry. Thousands of NFTs are sold daily. But why? Because the internet is full of cutting, pasting, reusing, and copying. Why is someone paying millions for a JPEG file, a video edit, or a digital trading card of their favourite YouTuber?
To try to understand the hype behind NFTs, we need to know why their value goes up so much. In economics, scarcity has determined the value of a product for centuries. Is a product hard to obtain? Is it not produced enough? Or is there little of it to be found in nature? Then demand exceeds supply. Resulting in a price increase. The same applies to NFTs, as there is only one file, which is the source file. When an NFT is in high demand, its value increases significantly. Due to the appreciation in value and rising demand, investing in popular NFTs is a clever move.
NFT in the future – how does it influence marketing?
We have established that NFTs are a disruptive change, and it encourages you to move even more parts of your everyday business to the online web. But how does this influence the communication and marketing field? Are there opportunities up for grabs? The answer is a loud and clear yes. NFTs offer opportunities to shed light on marketing from a different point of view. Creating NFTs can, for example, contribute to a better brand experience. You could consider a one-off, exclusive collaboration with a (digital) creator. Besides that, the NFT audience is very diverse. It ranges from artists and creators to businessmen. NFT marketing can increase the visibility of a brand. It also contributes to the brand interest and creates an innovative position. As a lot of other brands will, for the time being, be left behind. Respond now with NFTs of your own – it is an interesting, strategic marketing move.
NFT marketing pioneers: high-profile examples
It takes guts for a brand to be the first to explore the unbeaten paths. However, some large brands are already implementing NFT marketing. Taco Bell and McDonald’s, for example, use NFT marketing to promote their products. McDonald’s did so by raffling the McDoNFT. These were five exclusive frames, which were part of a raffle on social media between people who shared their tweets and followed the fast food chain.
An NFT strategy can also be a good fit for a product launch. For example, during the pre-sale of his latest book, writer Gary Vee gave away an exclusive, coveted NFT per 12 sales. The result? He sold a million books within 24 hours. One of the most successful pre-sales ever!
Shaping the future of NFT marketing together
To stay relevant as a brand, you always need to discover the latest opportunities in the digital playing field. By starting with NFT marketing now, your brand will be a pioneer within the marketing field. It is an extremely interesting addition to a marketing campaign if well integrated into the concept and strategy phase.
How can your brand get started with this now? Think of offering your self-made NFTs. A unique product launch or pre-sale. Digital, exclusive memberships. Offering and selling unique source files of designs. Or turn your advertisements into NFTs. Collaborate with influencers to create and distribute NFTs. In short, there are all kinds of opportunities in the field of NFT marketing.
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