Over the past few years, non-fungible tokens (NFTs) have generated a lot of buzz among cryptocurrency enthusiasts. Before 2017, many of us had never heard of an NFT. Fast forward to 2022, and you’ve likely seen headlines about NFT artwork selling for millions of dollars. Although that information is captivating, you may still find yourself confused about how an NFT works – and how it can be deployed as part of an omnichannel marketing strategy.
The ways in which NFTs promise to enrich the digital marketing landscape go far beyond digital art. Marketers are using them to create counterfeit-proof coupons and event tickets, unique cards for customer loyalty programs, and as tools for sweepstakes and gamified promotions (to name a few). Keep reading to learn more about NFTs and how to incorporate them into your marketing campaign.
What is an NFT exactly?
NFT stands for non-fungible token. The term “fungible” means that something can be exchanged without impacting its value. Physical money and cryptocurrency are considered fungible and equal in value. NFTs are different in that they contain a digital signature which makes it impossible to exchange for one another, hence the term non-fungible. The term “token” refers to a unit of cryptocurrency, as well as the owner of that particular item.
NFTs exist on a blockchain, which is a system for recording information in such a way that makes it difficult to change, hack, or cheat the system. An NFT is created from digital objects that represent both tangible and intangible items, such as graphic arts, GIFs, collectibles, music, and even videos and highlights in sports. NFTS also confer exclusive ownership rights, as they can only have one owner at a time. Blockchain technology makes it easy to verify ownership and the transfer of tokens.
How Can I Leverage NFTs in Marketing?
Now that we’ve covered the basics of NFTs, you may be wondering if you – as a savvy, up-to-the-minute digital marketer – can or should capitalize on this fresh concept. The potential of NFTs has already attracted a number of big brands – Coca-Cola, Adidas, Samsung, and Nike have all capitalized on the ability of NFTs to encourage engagement and brand loyalty.
One of the simplest ways to get involved in NFTs is to create your own. These should be captivating, tiny works of art – but don’t worry if you aren’t artistically inclined. There are many websites that exist solely to help you find incredible digital illustrators who can bring your vision to life. Think outside the box, too. NFTs can be incorporated into virtual real estate, digital artwork, fashion, video game, and even philanthropic marketing campaigns. One of the best parts of minting NFTs is that production costs are minimal, and since they’re distributed digitally, your logistical concerns will be limited to effective distribution and client usability.
Let’s look at a few specific ways in which NFTs are currently being used to enhance digital marketing strategies.
Digital collectibles have become a popular form of NFTs among marketers. By creating NFTs that have keepsake value – similar to a tangible collectible item – you can effectively drive brand awareness and potentially reach new audiences. Additionally, if you enter the game with an innovative marketing campaign at the height of NFTs’ popularity, you’ll increase the likelihood of getting serious traction on social media or even some killer PR placements. The hype surrounding NFTs is catching on with consumers at a rapid pace. If they’re willing to invest in assets they deem valuable, like your NFT, it can only increase visibility and benefit your brand.
Tickets and Subscriptions
Marketers can even take the NFT phenomenon to another level by creating a private community for those who purchase NFTs. Some brands are using NFTs as digital tickets for event access or keys for unlocking exclusive content to which the general public isn’t privy.
NFTs can also be used to great effect in digital promotions. One major benefit of using an NFT as a coupon or promo code confirmation is that blockchain codes can’t be duplicated, which provides built-in fraud prevention.
Customer Loyalty Programs
Perhaps you’re looking for a way to encourage repeat business – enter the digital customer loyalty program. Using NFTs as loyalty cards allows you to attract and convert customers digitally while giving users the convenience of a card that’s accessible on their mobile devices. So whether they’re in-store or on your site, they can easily acquire and spend rewards.
The Sky’s the Limit
Perhaps the most exciting aspect of NFT marketing is the sheer range of untapped potential. While trailblazers in the space have already mapped out some solid strategies, NFTs are still in their infancy. The opportunities for plucky digital marketers are limitless, as long as you’re willing to try a new tactic. Plus, if you do something really innovative with your NFT campaign, you’ll create even more awareness due to the pioneering nature of your approach.
NFTs are capable of generating a lot of buzz and creating a memorable experience for your audience. Ready to take the plunge into NFTs, but unsure where to begin? Contact Integrate today for a complimentary consultation on your potential NFT strategy.