Nonfungible tokens, or NFTs, are one of the latest developments in cryptocurrency and blockchain technology. Like all tech, marketers are looking for ways to help channel NFTs into their strategies and make them work for brands.
The news on NFTs is good - the NFT market was valued at 50 billion in 2021 and promises to keep growing. This means plenty of opportunities for business owners, brands, and marketers.
These ideas can help you jump into the NFT world.
What Are NFTs?
Nonfungible tokens (NFTs) are a digital form of cryptocurrency that exist on a blockchain. NFTs are tied to unique identification codes and metadata and can’t be replicated. Unlike crypto (like bitcoin) they don’t have a regular currency equivalent. Think of it more like a barter system rather than money.
NFTs can represent real-world items. They can be traded for real-world items or for other NFTs. A high-value NFT can trade for other high-value items, real-world or digital.
Since all NFTs are completely unique, their value in the marketplace was originally high, because there were so few of them. Since they were first introduced, the demand has cooled a little and businesses are finding ways to incorporate NFTs into their business and marketing plans.
Can Businesses Be NFT-Only?
Absolutely. NFTs are by definition a form of currency. Artists specifically can benefit from running NFT-only businesses, and brands that value exclusivity will likely find NFTs useful. The value of an NFT is built on that exclusivity - the rarer an NFT, the more value it holds.
In particular, NFT-only businesses work well in digital marketplaces like gaming and social media. Artists, musicians, and other creatives are using NFTs as well.
Using NFTs For Marketing
NFTs are a powerful marketing tool for brands, especially those whose businesses are primarily digital.
But for businesses that offer more traditional products, NFTs can still be a useful (and profitable) way to market their goods.
An NFT can be literally anything. A meme, piece of music, collectible, coupon. So in a way, it’s not too different from traditional marketing – the same tools and tactics still apply, and you can utilize NFTs, and their blockchain technology, to make your digital efforts more unique and more secure.
So let’s take an NFT coupon for example. You can create your coupon as an NFT, and promote it the same way you would any other coupon, utilizing social media, ads, or other mediums. You have the added benefit of it being an NFT and being able to market it on the fact that it’s an NFT. When your customers acquire the coupon, you’ve essentially created a counterfeit-proof and high-value way to utilize a classic marketing tool.
In addition to the practical ways of marketing NFTs, marketers need to stay on top of this tech the same way they need to stay informed about all new technologies. This is just the beginning of how marketers can utilize NFTs.
What About Small Businesses?
Because NFTs are so flexible, they’re actually a great way for small businesses to manage promotions. You can sell NFTs as tickets, offer them as VIP memberships, and use them to offer sales and discounts. The benefit of using NFT over another digital asset is that NFTs are all unique. It belongs solely to the owner and can’t be replicated.
This ownership also means the owner could potentially sell or trade the NFT, making for additional marketplace possibilities.
Takeaways
So are NFTs right for your brand? NFTs offer plenty of opportunities for brands of all sizes, and will bring even more possibilities as the marketplace continues to grow. Contact us to find out how we can help your brand dive into new technologies like NFTs, the metaverse, and more.
