Comic books, sports cards, coins, and stamps – all these common collectible items are outshined by the new fad, non-fungible tokens (NFTs). These non-fungible tokens have the ability to change the way marketers engage with their audiences, and alter marketing tactics for good. NFTs impact on marketing should not be overlooked.
What Are Non-Fungible Tokens (NFTs)?
NFTs are unique digital items created by blockchain technology to ensure validity. They are impossible to fake. Similar to artwork, countless people can look at a painting or take photos of it, but only one person can own the original.
Often bought using cryptocurrency like Ethereum Blockchain, NFTs have become Wall Street’s biggest fans as profitable ways to invest in entertainment. Although NFT sales are solely online, owning a digital NFT of the Mona Lisa is now considered one of the most valuable assets in modern art. Digital art, produced by these digital artists, now hold more power. Digital images of any sort such as graphics or photographs can also be considered NFTS, giving them value they didn’t have before.
As such a new industry, the NFT industry has not become oversaturated just yet, leaving the door open for marketers eager to get involved. But, how can marketers take advantage of this emerging resource?
NBA Shoots and Scores with NFTs
The National Basketball Association was one of the first businesses to immerse itself in NFT creation with NBA Top Shot. On the website, users can buy and sell player cards, moments capturing their favorite plays, and unknown packs. The site is run by NFT company Dapper Labs which has licensed all recorded NBA moments and attached a serial number to each.
The software launched in 2020, but skyrocketed in February of 2021 with over 800,000 users interacting on the site. Sports fans across the world are offering hundreds of thousands of dollars for the most popular plays. For example, a Los Angeles Lakers Lebron James dunk sold for $280,000.
Similar to sports cards, a player’s value directly corresponds to their performance in recent seasons. This is evidenced by recent champion James, who stars in the top three most expensive Top Shot moments. Not only are users buying their favorite moments to support beloved teams, but they are also investing in a player’s future prominence to increase their investment.
Positive press is a marketer’s best friend. But in such an oversaturated digital world, it’s hard to stand out from the crowd.
However, NFTs can impact marketing. They can create the opportunity for unique campaigns while also increasing the investment value of your business.
Exclusivity is often synonymous with popularity as we have seen time and time again with the fad of limited clothing drops.
With so many businesses out there, it can be a struggle to develop a winning digital marketing strategy. You may feel like you’re constantly doing marketing research.
Why should a customer choose your product or service? What sets your online marketing apart from the crowd? Having a unique offer is key for success in a crowded market, which is possible through NFT access.
Microsoft recently launched a virtual game in celebration of the International Day of Women and Girls in Science with NFT rewards for completing tasks. The tokens are also compatible with Minecraft and can help users unlock special game experiences. This promotion doesn’t only create buzz around Microsoft’s game, Minecraft play, and female empowerment. It also shows potential customers that these brands prioritize innovation and the user experience.
Similarly, rapper Post Malone created an NFT titled “Celebrity World Pong League” to honor his favorite party activity — beer pong. By collaborating with NFT creators at Fyooz, Malone created the token to facilitate competition among fans. The users who collect the most of their NFTs will get the chance to play beer pong with Malone himself.
Both Microsoft and Post Malone are successful in their respective fields. However, they are also continuing their time at the top by making themselves unique and irreplaceable.
How NFT’s Will Impact Marketing
In a culture of endless content, originality is few and far between. The non-fungible aspect of NFTs has become the most valuable aspect of the industry. But the profit does not stop there.
NFT marketplace Rarible is one of the many online platforms that allow NFT creators a certain percentage of profit on every resale. For example, actress Lindsay Lohan recently released her first collectible titled “Lightning” which rose from $1,000 to $63,000 in just one hour.
Lohan will receive 17% of each sale. She plans to “donate to charities that accept Bitcoin to empower younger generations in order for them to adapt and learn about this revolution that humanity is witnessing.”
However, most businesses would not be donating to charity. Instead, they will use profits to grow their team and improve internal affairs.
Don’t think your company’s NFT would be popular? You never know. Examine your target audience. Find the common interests among your customers and find ways to create an NFT they would want.
You may need to reconsider your digital media, email marketing and social media marketing strategies for this rapidly changing media landscape.
Incorporating NFTs could impact your marketing goals. By collaborating with other businesses or influencers, you can unite resources. Promoting an NFT could attract potential customers and add value to your brand.
It may be something to consider.