You’ve most likely read articles about NFTs and Web3 and overheard several discussions about them. However, if you’re like most marketers and business owners, you’re still unclear about NFTs and whether they apply to your startup or small business.
This article discusses what NFTs are, how they work, how brands use NFTs for marketing, and whether you should include NFTs in your marketing strategy.
Hiring a professional NFT Marketing Company is another option to explore.
What does the phrase “non-fungible” mean in the context of NFTs?
To illustrate, consider the following scenario. Money has many applications. A twenty-dollar bill is equivalent to two ten-dollar bills. As a result, they can be traded for one another.
NFTs are not fungible. The value of an NFT digital image, for example, may alter depending on the situation or market demand. There is no equal market worth for it because it is unique and only has one legal owner.
How do NFTs work?
NFTs can only be purchased and traded with cryptocurrencies. Cryptocurrency, or digital money, is encrypted, making it difficult to fake or double-spend. Ethereum and Bitcoin are two well-known examples.
The process of producing an NFT is referred to as “minting.” Following that, you mint an NFT and blockchain ledgers can be used to validate your original ownership as well as the distinct identities of your NFT.
A blockchain is a secure digital transaction system that holds data that is difficult to hack or manipulate (although this happens occasionally).
For example, you could have a unique duplicate of a photograph. There could be dozens of other photos that look exactly like yours, but yours is the only one. This is akin to the difference between original and replica artwork. There could be just one original painting and 100 replicas.
Where can you buy NFTs?
To buy NFTs, you’ll need a wallet with enough cryptocurrency to meet the minimum requirements for the site where you want to buy NFTs. To purchase NFTs, visit marketplaces such as OpenSea, Magic Eden, and Binance NFT.
Should you incorporate NFTs into your marketing strategy?
Over 40% of firms experimenting with NFTs claim the best ROI (return on investment) of any channel.
NFTs are not appropriate for all enterprises. However, brands are increasingly experimenting with NFTS-based techniques to increase brand recognition. As a result, you should, at the very least, keep an eye on this strategy.
How can you take advantage of NFTs?
Marketers of all sizes are experimenting with NFTs to increase brand awareness.
Norwegian Cruise Line, for example, collaborated with an artist to create six NFT artworks to help launch their newest series of ships. Teach for America received a portion of the proceeds from each sale.
Adam Bomb Squad is an NFT project by The Hundreds, a well-known streetwear brand. The collection comprises 25,000 unique bombs and backgrounds that celebrate the brand’s two-decade history. Owning an NFT in the project has distinct advantages.
Numerous other companies, both large and small, have launched NFT programs and promoted them through marketing efforts.
If you wish to employ NFTs for your small business or startup, here are eight NFT marketing best practices to follow:
Investigate the NFT environment.
Before plunging in and launching an NFT project for your firm, spend some time understanding the market and the industry. Inquire about critical issues such as:
What commercial goals are NFTs capable of achieving?
How do NFT markets work? Are there any noticeable patterns?
Which musicians should you collaborate with? Do they correspond to your market or company?
Only when you are ready can you confidently enter the NFT market. Keep in mind that most firms are venturing into new ground in this industry, and everyone is experimenting with different strategies.
Make something long-lasting.
The majority of NFT artwork is colorful and inspired by surrealist modernism. These works of digital art are intended to be stunning and valuable. Your organization should attempt to create an NFT that offers a unique and memorable experience. You don’t want to offer something that grows boring over time.
The majority of NFT initiatives, however, fail, particularly those launched only for financial benefit rather than as part of a bigger digital marketing plan.
Create an NFT centered on your brand.
If you intend to employ NFTs, be sure they are appropriate for your brand. Because raising brand awareness is your major goal, you want the NFTs to represent your company’s visual style appropriately.
You will not be able to achieve your goal if your NFT project is not linked to your brand.
Taco Bell’s NFTs project, for example, included 25 tokens with animated designs and a taco motif. The proceeds were donated to a charitable organization.
Coachella Music & Arts Festival created an NFT digital image of a flower in bloom on each of the festival’s two Fridays. The festival has a long tradition of mixing music, art, and fashion together. Thanks to its 2022 NFT flower, the company was able to profit from its fame while remaining true to itself.
Make an effort to form a community.
In its inviting climate, the NFT industry thrives. If you want to promote your company’s NFTs, try to get involved and make connections in the community.
NFT collectors frequently discuss their collections on Twitter. Your goal is to establish and strengthen relationships with your target audience. Participate in discussions and learn from your neighbors.
Consider your environment.
You may feel that because NFTs are produced in a digital environment, they are environmentally beneficial. However, some NFTs consume a significant amount of energy, with one Ethereum-based NFT consuming up to 100 kg of CO2 (equivalent to a one-hour flight).
However, energy consumption on blockchain platforms such as Solana and Algorand is decreasing. NFT experiments can thus be carried out with minimal energy use.
NFTs will not be beneficial for all brands to use in marketing activities. However, there is enough growing interest in NFTs that you should, at the very least, keep an eye on how other brands are adopting NFTs. With the right technique, this may be a powerful way to increase brand recognition.