Скачать или смотреть NFT Marketing: How Brands Can Use NFTS To Engage Consumers and Generate Revenue

What are NFTs (Non-Fungible Tokens)?

According to Wikipedia, A non-fungible token (NFT) is a unit of data stored on a blockchain (a digital ledger) representing a unique digital item. An NFT is a cryptographic token, but unlike cryptocurrencies such as Bitcoin and many network or utility tokens, NFTs are not mutually interchangeable, i.e., not fungible.

NFTs are based on blockchain technology and work similarly to Bitcoin (and other cryptocurrencies). Instead of cash, they are assets like art or music. They can take many digital forms, including images, animated GIFs, music, videos, social posts, games, trading cards, events and even virtual worlds. A non-fungible asset is completely unique and is neither replaceable nor divisible.

Why do NFTs matter to marketers?

What makes NFTs valuable is that they are unique, trackable and can be easily bought and sold. For the first time in history, digital assets can be protected from fraud, forgeries and fakes. Assets “minted” on the blockchain have a clear and transparent provenance that cannot be duplicated or copied.

NFTs also create monetization opportunities, as each NFT token includes a history of ownership, which is easily accessible and verified via a distributed network. In essence, digital assets can now be uniquely created (minted), distributed, managed and measured via NFTs. That means marketers and brands can create, manage and monetize digital assets like never before.

What are the benefits NFTs provide brands?

Beyond the ability to create new digital products and brand extensions, NFTs provide brands a host of new possibilities when it comes to marketing.

For starters, NFTs allow for attribution and provenance not available today in digital marketing. For example, NFTs allow advertisers access to the source and "history" of every communication made, allowing for better attribution and fraud reduction. NFTs also provide copyright protection unavailable before blockchain.

Brands can create content that has viral protection without concern for theft or manipulation. The early-stage use of NFTs by brands provides exceptional PR buzz levels that boost awareness, although that will not last. Inherently, NFTs offer more opportunities for brand engagement and experiences. While non-NFT content is ubiquitous, NFTs are truly scarce (for now, at least).

What are the challenges brands face with NFTs?

While we are still in the gold rush phase with brand NFT efforts, early forays highlight challenges with campaigns. Most of the brand efforts in the NFT space are publicity stunts: selling digital art for insane figures like Beeple’s $69 million NFT masterpiece.

Most early adopter brands didn’t think through what the NFT asset represents and what it enables its owners to do; they were just testing the waters. More practical challenges for marketers include costs (minting NFTs can be expensive and greater than the value of the NFT itself). Additionally, creating NFTs requires energy, resulting in a large carbon footprint (which may rule out eco-friendly brands).

Most importantly, laws and regulations haven’t kept up with the technology, including IP, copyright, licensing and taxation liabilities. However, today's most significant challenge facing those entering the NFT markets is the likely crash that will ensue in the coming months, as the market corrects post-honeymoon.

What are some early examples of brands using NFTs?

Although NFTs have been around since 2017, they've only recently gained notoriety, particularly in the arts, entertainment, arts, gaming, sports and collectibles industries.

One of the first and most famous examples of commercial use of NFTs is CryptoKitties, a virtual cat trading game. The game inspired Nike’s CryptoKicks product in late 2019.

Trading cards have become big business in the NFT space since CryptoKitties were first minted. According to USA Today, NBA Top Shot has sold more than $200 million worth of NFT cards and related collectibles so far. An autographed Luka Doncic Dallas Mavericks NBA rookie trading card sold for $4.6 million in one of the more significant transactions.

What are the key applications for NFTs for brand marketing?

There are a host of NFT applications brand marketers can leverage to achieve greater awareness, engagement, customer retention and incremental revenue. I’ve outlined just a few of the most obvious opportunities NFTs provide brands below:

Brand Awareness: The most obvious benefit of creating NFTs is generating brand awareness. Brands have generated a ton of free press as early adopters: Pringles CryptoCrisp, Taco Bell taco gifs, Pizza Hut pixelated 1 Byte Favourites and Charmin NFT(P), among others.