NFTs or non-fungible tokens have been around for years. But you probably didn't start hearing about them until last year. You had no idea they existed and then they were everywhere all at once. Advances in blockchain technology and a boom in digital art are only two factors of many that have led to the explosion in popularity of NFTs.
NFTs are now regularly making the headlines and JPEG images are selling for millions of pounds.
You have probably been asking yourself if this trend has any possible applications in marketing?
The short answer is yes. In this post, we’re talking about why NFTs should be of interest to brands, and how brands can use them to generate revenue and build communities
If you are wondering what the potential benefits are for your brand to move into the NFT space are, there are many. But here are a few of the big ones:
The major reason for brands to integrate NFTs in their marketing is the potential for community engagement.
NFTs give your customers the ability to directly engage with your brand. The verifiable ownership on the blockchain allows your brand to get closer to your customers. You can offer a new level of perks and benefits and connect with your audiences without any middleman.
Revenue generated from the sale of an NFT can be lucrative.
Additional revenue is always a plus for any brand. You can use the revenue to further enhance the initial concept by reinvesting in your NFT project or simply an additional revenue to take as profits from your business.
Having an engaged community of brand advocates is the holy grail of marketing. Every brand wants a community because those people recommend and advocate for your brand. This is the kind of publicity that you can't put a price on as it is often much more effective than advertising at generating brand awareness and attracting new customers.
NFTs unlike other forms of marketing, such as paid ads, have the potential to fuel community growth for brands.
There are several interesting applications for NFTs within community building.
Through building with an NFT collection you can reward your loyal customers for their loyalty. You can say thank you for their commitment to your brand by giving them access to some additional benefits through NFT sales.
Campaigns can be simple to start with. For example, if a customer buys a product, you can enter them into a competition with the chance to receive an NFT.
Or you can get more complex. For example, you can have an NFT for a subscription product in which your audience can find all the information about their history with your brand, publicly demonstrating their loyalty. You can then use these NFTs as a form of status within the community with the more loyal customers receiving greater privileges.
A musician can give concertgoers an NFT that can later be used to provide access to exclusive content or merchandise.
Wondering whether NFTs will appeal to your brand's unique audience? Well, let's take a look at the demographic engaging with NFTs at the moment.
An Adweek and Harris Poll survey in the US showed that 40% of the population were familiar with NFTs, and 81% said they were aware they existed.
However, only 12% of respondents said that they’ve invested in NFTs, but that number was much higher among Millennials at 27%.
Currently, NFT buyers can be broken down into general categories: investors, collectors and marketers.. The former is sees the opportunity to sell and generate money from NFTs in the short term. The second category in contrast, sees inherent value in their purchase. The third, the marketers see great audience engagement, increased loyalty and great ROI when using NFT’s in their campaigns.
NFTs are not some silly trend that is going to pass. Blockchains advancements mean that NFTs are here to stay. So brands need to look at how they can take advantage of this popular trend to benefit their band. Creating NFTs requires little investment but can bring a lot of value to your brand through community building. If you're not already selling or distributing NFTs for your brand, this is the sign to start.
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