NFTs: What are they and how can they be utilised for digital marketing?
Anyone who spends even a small amount of time online will have come across the term “NFT” by now. Short for Non-Fungible Token, an NFT is a unique digital token that exists on a blockchain like Ethereum, coming in various formats including photos, collectibles, games, video, and audio files.
Every single NFT out there contains unique data which means they aren’t interchangeable with one another.
For example in the real world, two people are able to swap $20 with each other with neither one losing out – they’re both worth exactly the same and are in the same dollar format. But when it comes to NFTs, as each of them is totally unique, none are created equal. Swapping with someone would be like swapping a comic book for a basketball card. Hence the ‘non-fungible’ in the name, which translates to it not being interchangeable.
What Gives An NFT Value?
There are quite a few factors that make NFTs valuable, including:
Each NFT is unique and one-of-a-kind. You cannot make another NFT with the same token number on the same smart contract. This means there will only ever be one of that token. This is verified by the blockchain and can be seen by anyone.
Since they are unique and cannot be copied, NFTs are rare. Most of the time, there are very few NFTs from an artist or seller— very rarely do they have thousands of NFTs. Therefore, you can safely assume you would be one of the few people in the world that owns a collectible item that can be resold.
You can hold onto them and their value may go up in price since there are little ways to saturate the collection/market. Buying them with the intention to resell later can earn you quite a lot of money if done correctly. In fact, there are plenty of people who do it every day and earn a living from it.
No one can edit the metadata on the token, remove your image, or revise the name of the token. This means it will never change or be removed and cannot be taken off the blockchain.
NFTs are forever. Because the data doesn’t change and the blockchain is eternal, you will always have that token if you buy it. Think of it like buying a gold bar; you own it and can do whatever you wish with it.
You can always resell your NFT. As they are highly speculative in nature, you may make some serious cash trading NFTs. Some have gone for USD$20,000USD+ when the original buyer only bought it for a few thousand dollars, delivering them over USD$15,000 in a short time and one single trade.
So How Can NFTs Be Used For Digital Marketing Purposes?
As we know all too well, two of the major focuses when it comes to a solid marketing strategy are brand storytelling and consumer interaction. Prior to NFTs hitting the market, there were indeed many highly effective ways to do this. Now that NFTs are becoming more prevalent, they can act as an incredible leg-up for brands to provide customers with truly unique brand experiences.
However, this is not to say every other area of your digital marketing campaign should be scrapped and to solely rely on NFTs to carry your brand to the next level.
Instead, NFTs can be incorporated into your overarching strategy to deliver better customer experiences, boost your brand awareness, and promote buzz around specific products and services.
One example of a brand engaging with NFTs effectively is Taco Bell. They ran a campaign with 25 NFTs up for grabs, with all profits going towards their charity which supports youth through career and education pathways. The promotion on their social channels created a huge buzz across social media. All 25 NFTs were quickly snapped up within just 30 minutes of becoming available.
There are so many other different ways that NFTs can be brought into the marketing mix by brands:
- Popular ads can be converted into NFTs and sold to customers
- Upcoming new launches can be supported by NFTs prior to the official launch, available to the first few pre-orders
- As social media is a powerful tool to reach out to your audience, businesses can run competitions on social platforms which include engagement requirements where prizes are NFTs
The Potential Of NFTs
With NFTs increasing in popularity every single day, how your brand uses them is as limited as your imagination. Have brainstorming sessions with your colleagues to come up with innovative ways to bring them into your campaigns and test what works with your audience(s).
The sky really is the limit when it comes to NFTs!
Elevate Your Brand Presence With Innovative Digital Marketing Solutions
As Singapore’s leading digital agency, First Page Digital is always dedicated to innovation and constantly pushing the boundaries.
First Page Digital is now under the global superbrand known as Superist, which is offering its own NFTs and accepting cryptocurrency for client payments.
Contact us today to see how First Page Digital can help your business grow by leveraging innovative digital marketing solutions!