NFTs are quickly becoming the new norm when it comes to social signaling. Just spend a bit of time on Twitter, and you’ll soon realize that everyone’s profile image has been changed to an avatar of some sort.
While NFTs may seem like just another hyped-up gimmicky idea that will blow over, judging by various big brands’ uptake, this doesn’t seem like the case. Instead, NFTs represents a culture change and reformation of how humans engage and trade with one another.
Moreover, the NFT phenomenon also offers the opportunity to build something truly remarkable, which is why so many major companies and celebrities have jumped on the bandwagon and are investing in NFTs to leverage their brands.
Fortunately, NFTs aren’t reserved for the elite – we can all utilize them, and businesses can leverage them in various ways.
WHAT EXACTLY IS AN NFT?
There’re tons of information explaining the term, so if you’re well versed in all things NFT, you’re welcome to jump to the next section. However, for the NFT neophytes among us, the explanation is quite simple (and a thorough understanding of the concept is strongly recommended before delving into how your organization can leverage them!)
NFT is an abbreviation for non-fungible tokens. Since it is non-fungible, no other value can be equated to it. For example, if you tried to exchange the NFT, its value would not be equivalent to what it was being traded for, unlike Bitcoin or other cryptocurrencies. This ensures the NFT’s uniqueness because there’s no equivalent available. So basically, an NFT may be any digital asset that has been tokenized.
Blockchain technology underpins NFTs. Essentially, blockchains are decentralized ledgers that track the life of a digital asset. This indicates that a large amount of data is kept in a single location. Each NFT is a distinct token on the blockchain. Ethereum, a cryptocurrency blockchain, powers the bulk of NFT’s. This is the blockchain that is presently being utilized the most.
WHY ARE NFT’S VALUABLE TO BUSINESSES?
NFTs may represent digital items such as art, audio, and video, which is one of the primary reasons they are essential to brands. Since they are so adaptable, they may represent various types of creative work, including virtual real estate, fashion, and various other things.
So, what’s the relevance of this to your brand and marketing strategy? Due to the worldwide interest in NFT’s, new avenues for brand storytelling and consumer interaction have opened up, which are, as you know, the two primary pillars of an effective marketing strategy.
You can do the following with NFT’s:
• Develop distinctive brand experiences
• Boost brand awareness
• Promote interaction
• Generate excitement about your brand and products
Essentially, NFTs can assist you in increasing conversions and income.
HOW ARE MAJOR BRANDS UTILIZING NFTS?
Within 30 minutes of listing their “NFTacoBells” on Rarible, all GIFs were purchased. They all sold for thousands of dollars (one sold for $3,646!)
Taco Bell made the smart decision to get on the NFT train early and start creating plus marketing NFTs. The concept received a lot of attention in the mainstream media and on social media (which is always beneficial for business).
NFTs, like Taco Bell, may be used to accomplish two goals at the same time:
- Increase brand awareness
- Contribute to a worthy cause
These are both powerful elements that can help your business generate more revenue.
Are you looking for a means to disrupt your industry and establish yourself as an authority figure? NFTs can assist you to do this!
That is precisely what happened when a relatively obscure Chinese virtual shoe company called RTFKT produced and auctioned an NFT sneaker in honor of the Chinese New Year. The shoe fetched a staggering $28,000.
That’s quite an accomplishment for a business that’s been around for less than two years, especially given they sold a shoe that cannot be touched, let alone worn. The company went on to earn $3 million from another NFT shoe they made in cooperation with FEWOCiOUS, an 18-year-old artist.
With NFTs in their infancy, now is the moment for marketers to jump on board. It’s an excellent strategy for attracting attention and growing a community of followers.
As a marketer considering methods to harness NFT technologies, take some inspiration from RTFKT.
Create limited edition memorabilia to commemorate significant anniversaries and holidays and include them in your seasonal marketing initiatives. You can then either give them away or sell them individually to the first X number of clients.
Six million dollars in less than twenty minutes…
That is how much Grimes earned on the auction of a collection of ten NFTs on Nifty Gateway.
It’s apparent that consumers care about NFTs, and companies may capitalize on this interest to advertise their products. For instance, you can:
- Get your brand featured in an auction by collaborating with artists or auction houses
- Develop an NFT and auction it for charity.
- Hold a contest (to generate leads) with NFTs as the prize.
Marketing is all about capitalizing on current trends and utilizing ingenuity to leverage the hype around them to generate interest in a business.
KINGS OF LEON’S ‘WHEN YOU SEE YOURSELF’ ALBUM
The music business has grown highly competitive due to the proliferation of performers and bands. Creating and maintaining a loyal fandom isn’t as simple as it used to be.
The Kings of Leon got around this by releasing the album “When You See Yourself” as an NFT.
The Kings of Leon are releasing this album utilizing three distinct tokens. One option includes a limited-edition record, while the other includes exclusive access to live shows. The third form of token is an audiovisual work of art.
While the album is available on all major music platforms, the NFT edition was released only through YellowHeart for $50. The sale of the NFTs lasted barely two weeks, at which point no further album tokens were generated. This action elevated the tokens to the status of collectibles.
The Kings of Leon made history by being the first band to release an album in its entirety in NFT format.
Additionally, it cemented their place in their followers’ hearts by allowing them to possess digital items—a terrific method of cultivating brand loyalty.
Be nimble in your adoption of innovative technology and concepts. With competition increasing more intense by the day, you must be ready to take calculated chances and be disruptive to outperform.
The takeaway here is that clients will pay for exceptional experiences. Profit from this by converting some of your best adverts into NFTs. Organize an event where you auction them off and ensure that the event is extensively publicized. Not only will this boost brand awareness, but it will also enable you to connect with new audiences.
GET STARTED TODAY, BY…
- Conceptualizing what value, YOU as a brand can offer the world through an NFT project. This will take the shape of a design (perhaps even a collection of designs), normally ‘minted’ on a blockchain, which then unlocks a range of real-world value to the buyers.
- Generate confidence in your NFT project with a heavily built-out Discord server. Your internal (or have an agency run it) social managers will be nurturing the audience day & night.
- Start conversations with influencers and brand ambassadors to visually support your project on their networks.
- Run a contest on your Twitter profile (for lead generation) with NFTs being the prize.
- List your project on niche NFT sites. They also have newsletters sent to 1000’s of industry-related people across the globe.
WHAT THE FUTURE HOLDS
Admittedly, NFTs are still in their infancy, and their practical applications are limited. However, they are popular, and people are prepared to spend money on them. These are unmistakable signs that they are here to stay.
NFTs, like the blockchain technology that powers them, have the potential to play a critical role in the future digital world. This is especially true for marketers since NFTs have created new opportunities to engage with your audience and provide them with distinctive experiences. Remember that most of the technology we use now (such as social media) began as “fads”. Yet, we lean on them for so many things in life nowadays.
While NFTs may appear to be an overhyped fad at the moment, they deliver a slew of advantageous qualities (such as transparency combined with security) that overcome the constraints of the present technology.
NFTs are excellent at making lasting impressions with your customers. Furthermore, they provide an awesome way to connect with your target audience. While the NFTs are only just becoming commonplace, brands should be aware of the changing digital landscape. In other words, it would be pretty silly not to investigate how your business can leverage NFTs and make them work for you.
“We are just getting started”