I’m sure at some point in 2021 you heard about NFT. The three letters that moved the market and caught the attention of investors, collectors, artists, gamers and celebrities continue to be talked about this year.
First, many people didn’t understand why a work of digital art was being sold in prestigious auction houses at millionaire prices, then they were amazed that a simple message, image or gif was also moving stratospheric values.
One of the most notable cases, a tweet posted in 2006 by the founder of a social network and sold in March last year for 2.9 million dollars, opened the door to a new market, which in recent months has aroused the interest of consumers. and major global brands.
But, before dealing with the main topic of this article – how NFT can be thought of in your marketing strategies – it is nice to explain what all this means. I like to use a definition from Cuy Sheffield, subject matter expert and head of crypto at Visa, to clarify what such non-fungible tokens are. Sheffield speaks of them as “a way of representing ownership of a digital good, such as an image, video, or piece of text.”
Think that in the history of the internet, files have been endlessly copied, posted and shared. Encryption can now certify the provenance and authenticity of digital media. Like cryptocurrencies, they are tracked and traded on a public blockchain network.
The content that circulates on the internet as NFT has gained the relevance of a collectible item, which generates a series of opportunities for digital commerce and the engagement of brands with their consumers, eliminating barriers between the creator of a piece and its buyer. Not to mention the reduction of costs related to the production and delivery logistics of a physical good.
In my last article here, I commented on the metaverse. And this has everything to do with NFT. Just to give you an example, brands are creating unique digital items, like numbered sneakers, to be used in digital gaming environments. That’s right! Consumers do not receive their merchandise at home, but purchase an accessory for their avatar to be more stylish on the computer screen, on the smartphone.
I see at least four major advantages of including NFT in your marketing strategies:
- Increase the reach of your audiencestarting to invest in digital goods that are not restricted to the limitations of traditional deliveries.
- Enhance brand fan engagement. By creating “collectible pieces”, you get closer to your customers and offer them a unique experience.
- Reinforce the spirit of community. Some brands are using NFT as a means of certified access for consumers to join as a member of a community where they can enjoy exclusive benefits and perks.
- Support good causes. The money collected from the sale of NFTs can be donated to social causes, with the aim of supporting local communities or reinvesting in the work of independent artists.
I think that the very concept of marketing is closely related to NFT, as we are experts in giving value to something intangible, like building a brand. In addition to the advantages I listed above, there is a world of opportunities to be worked on.
In 2021, the young NFT market moved over 40 billion dollars worldwide, in a clear demonstration of its strength. Of course, there is an investor hysteria that drives this movement to values that are often unrealistic, like a bubble that has filled too fast and could burst at any moment. But there is no way to ignore people’s interest in the subject.
On here and Visa we see NFT as the next stage of e-commerce. We are keeping an eye on the growing interest from markets, brands and platforms. That’s why Visa purchased an item from one of the most iconic pixel art series in this new ecosystem, the CryptoPunk 7610. A way to recognize the importance of this culture and support artists, communities and partners.
It is still too early to project the future of non-fungible tokens, but we have a clear notion that they have gained more and more relevance in a changing world, with new entrants in the digital environment.
The post It’s time to think about NFTs in your marketing strategy appeared first on DNEWS.
