If you have spent even a few hours online these past few months, you have likely come across the term ‘non-fungible tokens’ or ‘NFT’s. What many once thought was a silly fad has quickly exploded into a movement, with celebrities and influential figures across the world not only throwing their endorsements behind the practice, but investing millions of dollars to simply get their (digital) hands on them.
But is it really all about a series of artworks with secret benefits attached to them? Proponents don’t think so. In fact, many believe NFTs are the way of the future, replacing so many of the traditional practices we operate on and plan to disrupt virtually every industry on the planet.
With this in mind, our team at Clearwater have thought to get ahead of the curve and ask, ‘how are NFTs set to revolutionise marketing?’
What Exactly is NFT?
Before we get too stuck into any particular theories, we should first address what many are still asking – what really is an NFT?
Chances are you have also heard of blockchains. If not, these are digital systems of recording information on a series of actions and transactions, existing in an open ledger making it incredibly difficult to alter or hack. This provides greater protection for both purchasers and sellers, as well as removes the need for third-party organisations to facilitate these interactions.
NFTs exist on various blockchains available and are cryptographic tokens that act as authentication of an asset (typically a digital asset, such as artwork). Think of copyright contracts, proving both ownership of the asset by the purchaser, whom they bought it from, and how they paid for it.
How are NFTs Being Used in Business?
The focus right now is around speculative investors purchasing digital artwork projects in NFT form in hopes of their rapid appreciation, leading many to see it as a temporary, volatile, get-rich-quick scam.
What doesn’t receive as much attention, however, is the various applications now being adopted in the realms of real estate, brand licensing, event ticketing, and even the sales of high-value, tangible assets, to remove any potential issues for contentious ownership or copyright claims.
This technology is simply doing what the internet or social media did before it – affording brands a new channel to build a better user experience, promote brand awareness, and generate additional income streams.
How Can NFTs Be Used in Marketing Campaigns?
NFTs are still a new terrain, so the limits are currently unknown. For now, centre your thinking on how NFTs can be integrated into either existing campaigns, or inspire new ones, to boost your top of funnel activities, rather than just trying to make some quick revenue selling speculation. On their own, NFTs will not be your direct communication channel, but they can be at the heart of the new conversations surrounding your brand.
Brands can create experiences behind their tokens, with smart contracts attached that will allow a limited number of holders to gain access to private events, receive early access to product launches, or enjoy partnerships with other brands in lucrative partnerships. By creating a demand for NFTs, you are almost creating attention for a new product that is also balanced with a bit of status or exclusivity.
Limited numbers available and well-timed releases can generate a significant amount of buzz online and in the real world, working well beyond the marginal amounts of extra income you may receive. You may even want to give them away for free in a competition-style format, increasing the amount of interest in a wider audience pool.
If your brain is now starting to tick with all of the amazing possibilities that surround NFTs, you are joining a growing number in the industry. Time will tell how much of an impact NFTs will have in marketing, but fortune favours the bold, and early adopters are already enjoying significant returns on investment.
Receive Further Assistance with Your Digital Marketing
As you continue to research NFTs and their potential for your brand, why not explore other avenues to improve your digital marketing with a free discovery session from the experts at Clearwater? Contact us today to learn more.
