NFTs: An Unbelievably Powerful Media and Marketing Asset
In the past year or so, NFTs went from being regarded as a passing novelty to a powerful media and marketing asset. The turning point? Digital artist Mike Winkelmann (Beeple) smashed through all expectations, selling his "Everydays: The First 5000 Days" collage for an incredible $69 million in 2020. Marketing gurus instantly took notice and realized the potential for NFTs to build brand awareness and loyalty while bringing in revenues. In response, adjustments to advertising strategies started in earnest to help brands leverage NFTs as a true asset in promoting their business success.
If you'd like to harness the power of NFTs as a media and marketing asset, it's not too late. In fact, this journey is just beginning as these fun digital collectibles increase in popularity.
What Exactly are NFTs Anyway?
When they first appeared, NFTs confounded the world. Their official name -- non-fungible token -- doesn't help clear up matters, either. So, to start, it's important that you know that NFTs are 100% unique cryptographic assets with their very own identification codes.
Like cryptocurrency, they are created using blockchain technology, but their unique nature makes it impossible to trade NFTs on a one-to-one basis. Instead, they each hold their own value, which can go up and down over time.
NFTs are very similar to other collectibles in that right. Pokémon cards, for example, each have their own value based on rarity, popularity and other factors, eliminating the chance of trading your basic Jigglypuff straight across for a first-edition holographic Charizard.
In fact, some brands have turned their NFT journey into a trading-card game-esque adventure complete with basic to rare collectibles. Dapper Labs did just that in the creation of CryptoKitties, an imaginative blockchain game centered around buying, breeding, selling and collecting digital felines.
Operated on the Ethereum network, this game has amassed a huge following. But it's not the only way for brands to leverage NFTs.
How Brands Effectively Leverage NFTs
Brands don't have to create a whole game world to effectively use NFTs to build customer loyalty. Most brands keep it simple by dreaming up digital assets that speak to their customers' interests, needs and wants.
Sneakerheads love the ultra-rare, new sneaker releases, for example, often standing in line overnight or longer for a chance to buy a pair. Knowing this, digital sneaker creator RTFKT dreams up stunning designs and releases each one as a unique NFT.
It really doesn't get any rarer than that, boosting customer engagement to great heights. As a result, their gorgeous gold and red Chinese New Year sneaker design sold for $28,000. Better yet, their sneaker collab project with FEWOCiOUS went for a mind-blowing $3 million.
They're not the only ones using their understanding of customer wants to create lucrative NFTs and drive interest in their brand. Popular musician Grimes released 10 NFTs designed with her ethereal aesthetic in mind, earning a stunning $6 million in about 20 minutes.
Disney has even jumped on the bandwagon and created limited edition artwork to sell as NFTs on Disney Plus Day. Their art centers around popular franchises like The Simpsons, Marvel and their princesses, of course, getting customers hyped for the chance to own digital depictions of their favorite characters. Better yet, they released every NFT blind-box style to tap into their customers' love for fun surprises.
Even Taco Bell has recently gotten in on the action, creating taco-centric GIFs that they lovingly dubbed NFTacoBells. These 25 NFTs went up for auction with the promise that the proceeds would support the Live Mas Scholarship. Within 30 minutes, the $1 starting price of each NFT landed in the thousands, with the highest-priced asset going for $3,646.
Are NFTs Worth Investing in for the Long Term?
Although it might seem like brands are riding the hype wave to greatness, NFTs are so much more than a passing fad. As unique, branded media and marketing assets, they have the potential to keep people talking about your company for the long term.
Many people see investing in NFTs as the long game, after all, intending to maintain their portfolio of digital assets for years to come. Each time the asset holders elect to sell your NFTs, your brand will land in the spotlight yet again.
The brand loyalty achieved with each NFT will last even longer, too, especially if you truly hit the mark with your releases. People love to support brands with a good understanding of their interests and the drive to add value to their customer experience. They are even more driven to remain lifelong customers when companies engage in charitable pursuits, like running a helpful scholarship program.
How to Start Using NFTs to Support Your Brand Success
If you want to use NFTs as a media and marketing asset, you have to start with a clear understanding of what your customers want from your brand. Think about the types of digital assets that best align with your brand's purpose, mission and values. Then, get to work creating assets people will want to buy, collect and sell.
Once you have at least a dozen NFTs in hand, you can drum up interest by:
- Linking NFTs with much-anticipated releases
- Collaborating with popular artists or influencers
- Giving away imaginative NFTs through a contest
- Pairing your NFT sales with charitable acts
- Hyping up your NFTs on your social media channels
If your efforts hit the spot, then your future NFT releases may very well stand on their own. If not, keep employing the practices above to use NFTs as an asset in building your brand success.
Sources:
https://www.linkedin.com/pulse/why-nfts-asset-your-marketing-strategy-donald-williams
https://neilpatel.com/blog/non-fungible-tokens/
https://www.theverge.com/22310188/nft-explainer-what-is-blockchain-crypto-art-faq
https://www.theverge.com/2021/3/11/22325054/beeple-christies-nft-sale-cost-everydays-69-million
https://wegotthiscovered.com/news/how-to-buy-disney-nfts/
https://www.theverge.com/2021/3/1/22308075/grimes-nft-6-million-sales-nifty-gateway-warnymph
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