Acquire’s NFT Guide for Brands
Source: EnvatoElements
NFTs are new, futuristic, trendy and attracting a lot of smart investments. For brands they create the ultimate playfield where they can be youthful and develop a new identity to engage with the next generation of tech-savvy consumers .
Pizza Hut Canada, DKNY, Taco Bell, Asics, Coca-Cola, Campbell's and Nike are already making headlines with their NFTs, while other brands are leaning towards expanding their digital assets with this new technology, and marketing agencies are working on new growth strategies to conquer the crypto art marketplace.
What are NFTs?
An NFT, or Non-Fungible Token, is a blockchain-based digital file for artwork, photography, video, music, fashion, virtual reality or even video games which allows consumers to own unique artifacts that grow in value through a bidding process. What makes them desirable and extremely valuable is that each item can only have one official owner at a time. With unique identification codes and metadata, NFTs are truly one-of-a-kind.
The NFT attraction for brands
Coca-Cola NFT auction fetched more than $575,000
Source: The Drum
The world saw its first NFT auctioned off in March this year which was a collage of 5,000 images by the artist Mike Winkelmann. It sold for a whooping $69 million and immediately attracted the attention of investors, art lovers, gamers and big brands.
A tested and proven multi-million dollar revenue stream can turn quite a few heads. What is particularly interesting about NFTs though, which has captivated brands, is the opportunity to create accelerated consumer experiences, increase brand loyalty and spark more interest in their product which ultimately leads to more conversions.
NFTs are here to stay and the sooner digital marketing agencies understand and pay attention to this new vertical the more prepared they’ll be for current and future clients.
Key to a successful NFT campaign
Source: KRWG
Navigating new waters can be treacherous and we want to help. So if you’re exploring possibilities with NFTs it is crucial that you understand and implement these three key points:
Create a unique brand experience
NFTs are not one-size-fits-all. Their primary purpose is to create bespoke value for the purchaser, whether that’s an art enthusiast or a fashion aficionado. They need to feel like a valued member of your brand’s ecosystem.
The highest value proposition
The property of something fungible, is that it can be exchanged for something of equal or similar value. Hence, the beauty of NFTs is that they are re-sellable in the future. If the brand equity for Coca Cola increases in value, the value of their futuristic Bubble Jacket NFT also increases. This is an incredible opportunity for Coke collectors to invest in their favourite brand and at the same time also expand their investment portfolio in the company.
Offer meaningful experiences
Most marketers will tell you that meaningful, intimate NFTs perform better and that is true, especially when it comes to smaller businesses or emerging solo performers. When creating NFTs for rising stars, for example, fans are much more incentivized to purchase NFTs that offer meaningful experiences such as backstage access at a concert.
Novel ideas will grab attention but they will soar only if companies learn to give back to good causes. The value a specific NFT provides must trump revenue goals for a brand. You need to establish yourself as a valuable asset to the community to attract today’s consumer.
Understanding NFTs isn’t just important for growing business; it’s important for keeping business. It gives brands a competitive edge and by the looks of it, it’s very much here to stay.
