NFT marketing is a relatively new concept that companies are increasingly adopting to compete in a digital world. Though there are few concrete examples of how NFT marketing can help companies, this term refers to using blockchain technology and cryptocurrency as advertising mediums.
By using NFTs, brands can produce more engaging ads while also being able to capture valuable information about people’s experiences. With this newfound data, brands can make better strategic decisions regarding their campaigns and products.
NFT stands for Non-Fungible Token. This is a type of digital token that is unique, meaning it cannot be exchanged for another digital token.
Currently, the most popular NFTs are CryptoKitties and CryptoPunks, but there are various NFTs based on real and fictional objects. In the future, people expect to see an increase in NFTs because brands can collect valuable information from consumers from blockchain tracking.
Blockchain technology enables the creation of an immutable and transparent ledger of transactions that is shared among all nodes within the network.
Therefore, a brand can use blockchain to ensure that all user information is securely stored and cannot be altered. This transparency also helps brands that want to communicate with customers in more authentic ways.
As more NFTs are added to blockchain networks, brands can track relationships between objects. For instance, imagine a person buying a CryptoPunk, and then, a year later, that person buys another CryptoPunk.
From an advertising standpoint, this is valuable information because it allows brands to know their existing customer base better and see if they have any product suggestions or complaints. Because customers will have invested in these CryptoPunks with money and time, they are more likely to speak up if they are unhappy with the product.
Reward brand loyalty:
Brands will be able to reward customers for their loyalty more by handing out CryptoPunks worth more when the customer spends more money.
For instance, if someone buys two CryptoKitties, they would get two of that specific breed — not the same type of cat — and the second kitten would be worth more than its original price. On the practical side, if a brand stores information about these CryptoKitties on a blockchain network, they can collect valuable data on their loyal customers.
Brands are generally very involved in their community by keeping tabs on their customers’ likes and dislikes. However, because the information is decentralized, it is usually scattered among different departments.
By using blockchain to collect data from loyal customers, brands can aggregate this information on a centralized network that is shared among all teams within the company.
For example, if a customer likes chicken wings, a brand can provide more variety with different chicken wings and happy hour discounts for everyone who gives them feedback about the food.
NFTs can be used for giveaways:
Brands are known for giving away free products to customers and visitors. By using NFTs as giveaways, brands can now give away items that have value to their customers.
For instance, many companies offer a free product once every month to their loyal customers. Instead of giving out a specific product each time, they use an NFT associated with the item they want to give away so that it has value no matter who receives it.
NFTs for launch promos:
Some brands are using NFTs to launch new products. One example is the War Riders game, where users can purchase an entire car or parts for their car. The first person to finish their car with the best specs wins a prize.
NFTs for organic growth:
Brands can use NFTs as referral links where people get rewarded for sharing their CryptoKitty with others in their network. For instance, if someone gives a CryptoPunk to their friend for the first time, they will get points for doing so. With this information, brands can create special offers to groups of people with related interests.
NFTs for loyalty programs:
Some brands are putting their loyalty programs onto NFTs by allowing their customers to trade NFTs from one platform to another. For example, when someone shops at a brand’s online store, they can trade their loyalty points in another platform for points on the same store.
Some gaming companies are using NFTs in their games. For instance, CryptoKitties developers created a platform where users can trade these digital cats and get rewards for doing so.
The future of NFT marketing is filled with potential and possibilities, but it is important to realize that there are many challenges. By implementing blockchain technology, brands are faced with either using it or fighting against it to maintain control over their data.
For example, some brands may use blockchain technology to collect more information on their customers than they were previously allowed. This could result in increased privacy concerns and the loss of control over their data.
Furthermore, blockchain technology makes it easier for users to track other users’ behavior because each purchase is traced back to them. While this could result in a more transparent ad experience, it also creates privacy concerns as people worry that they may be profiled based on their purchases.
Some people in the entertainment industry, such as content creators and publishers, are using blockchain technology to increase their profits. For instance, PlayBuddy allows people to create game-based Wishlist items and NFTs that can be used to get rewards.
Is NFTs Worth Your Marketing Investment?
NFTs are still in their infancy, and the advertising industry has only recently started to realize the potential opportunities NFTs can offer. However, they might be worth your marketing investment as they continue to grow and develop.
The use of blockchain technology can be useful for several reasons: It is a practical way to track users’ behaviors to understand customer needs and preferences better. This allows brands to optimize their products and rebrand them more quickly.
At the same time, blockchain technology is designed to be decentralizing, so it can disrupt brands that try to control the market. For example, if a brand decides to create its crypto token with a customizable wallet and storage options, they jeopardize the security of shared data on its network. This means their users will have less control over their data and might need clarification about its use.
Most brands need to become more familiar with blockchain technology to capitalize on its potential fully. However, as the technology continues to improve, it might be worth your marketing investment to start looking into NFTs.
Blockchain technology is an innovative tool that can be used for multiple purposes. One of these purposes is to bring value to brands by allowing them to create new digital assets or NFTs. With this change, brands can build community and reward loyal customers by giving away CryptoKitties. Blockchain technology can also be used in marketing by giving away NFTs that have value to people.