Technology has been advancing rapidly over the past decade, and there are no signs that it will slow down. One area that has grown and entered the mainstream is blockchain technology. Most people have heard about cryptocurrencies such as Bitcoin, and many of them understand fairly well how they are used. The number of people who have heard about NFTs is growing, but many people do not know what they are. This article will explore NFTs and how marketers can leverage them as part of their marketing campaigns.
NFTs (Non-fungible Tokens) have existed for a few years now but have exploded in popularity over the last three years or so. To understand NFTs, we must first understand what the term “fungible” means in this context. Something fungible can be exchanged for something with an equal or higher value. The fiat currency we use every day is a form of a fungible commodity.
Non-fungible things are totally unique, and this cannot be exchanged as an equivalence for something else. Non-fungible items will often attract a higher price and are viewed as having a higher value because they are unique. A good example here is diamonds. No two diamonds are alike, and each piece of diamond in the world has a unique value.
A non-fungible token is an asset created and authenticated using blockchain technology. Non-fungible tokens come with unique metadata and identification codes which make each token unique from the next. Because each NFT is unique, it is a one-of-a-kind asset that cannot be replicated or exchanged for another NFT.
NFTs garner a lot of attention whenever they are announced. This level of attention is why NFTs sell out within a few minutes of being announced. Businesses can leverage this buzz to bring more attention to their business and product launches.
The NFTs can be crafted around the new product and service. This way, information about the latest product can circulate while the buzz about the new NFT is at its peak. This way, the business can use the power of public reach, interest, and attention to market the new product.
In their 2021 Consumer Culture Report, 5W Public Relations states that over 80% of Millennials would rather do business with businesses and brands they deem to hold the same values as them. Because of this, many modern businesses are sporting causes they know align with the values of their millennial customers.
Businesses can donate proceeds from their NFT sales to deserving charities to attract millennial customers. Doing so is an excellent way of garnering well-deserved attention as the community will deem them valuable assets to the community and a business that does the right thing. This kind of goodwill is difficult to come by these days. Businesses that do this are 4-6 times more likely to attract millennials and Gen-Z customers who love businesses driven by such purpose and care about the community.
NFTs have proven to be a new way to disrupt the market and announce your entrance into it. Various companies have already done this as they have developed luxury product designs and sold them as NFTs. Creating limited memorabilia that celebrates milestones, holidays, and achievements, and announcing the NFTs at the right time, can do wonders for a business. It can bring attention to the product and the business attached to it. Businesses doing this release a limited number of NFTs to give away to the first few customers or auction them to bring even more attention to their products.
If you already have an ad that has gone viral, selling it off as an NFT is a great way to give it new life while marketing the business at the same time. Some of the best ads sold as NFTs show that people are willing to pay for great experiences and nostalgia. To do this, you need to sign up on an NFT platform and ask them to turn your digital assets (ads) into an NFT. You can then create an event where you auction the NFTs. Make sure that you only put up the best ads and publicize the event well to reach as many people as possible.
Influencer marketing is still going strong and is a marketing strategy that businesses should always take advantage of. Instead of collaborating with traditional influencers, businesses can collaborate with NFT creators to help create NFTs for the business. In addition, the creators can post or talk about their creations on their platforms which is a massive advantage because many of them already have a considerable following.
There are very few businesses doing this, so this is an unexplored area with a lot of potential. To further help your products market the business for you, consider complementing certain physical purchases with NFTs. These NFTs will bring attention to the business, improve customer satisfaction, and, most of all, help market your business. Doing something different means that people are much more likely to talk about the NFTs they received on social media, essentially marketing your business for you. This is especially true for millennials and Gen-Z, who are more technologically savvy and understand the value of an NFT.
Gamification campaigns are often seen as something only big companies and businesses do. However, NFTs can change this by bringing gamification marketing to small and medium businesses. Like with Pokémon, businesses can run promotions where people hunt for NFTs inside their locations. These scavenger hunts will bring a lot of traffic to businesses and lead to a lot of attention, especially if the NFTs are rare and valuable enough.
We are just beginning to understand how NFTs can be used in various circumstances. Businesses are starting to look at leveraging NFTs in their marketing efforts to increase customer numbers or revenues. What businesses can do with NFTs and their overall potential is limited by their imaginations.