What is NFT Marketing? (highlights)

You probably already know about NFT. Or at least you've heard that "some monkey pictures" sell like hot bread for thousands of dollars.

NFT technology has given a new perspective to digital art.

But can it also be used for marketing?

In this article, you'll find out what NFT is and why the world is talking about it, how businesses are taking advantage of NFT in their campaigns, and how you as a marketer can adapt to the environment.

What is NFT?

NFT (from "Non-fungible Tokens") stands for non- fungible tokens. These are digital assets that can be bought and sold, just like any other property. Each NFT is "tokenized", meaning it has a digital certificate of ownership that makes it unique. This ownership token is stored in a digital ledger called a blockchain.

To make it clearer, imagine you have a card personally signed by your favorite athlete.

Yes, many people will probably have the same card but signed by that athlete and in that exact way only one original copy exists and that is yours.

So it is with NFT. These are digital assets for which you have proof of ownership and originality.

How promising is NFT?

While there has been a decline in demand, mostly because the market is shifting towards more meaningful uses of the technology (besides selling digital art), NFT has definitely caused a media buzz over the past few years.

Various events, however, created the headlines, one such being Twitter founder Jack Dorsey's decision to "forge" NFT related to the first tweet ever posted on the web and sell it for as much as $2.9 million to Iranian entrepreneur Sina Estafi.

Paradoxically, just a year later, Mr. Estafi's plans to auction off the NFT in question for $48 million, 16 times his original investment, despite promising 50% of it to charity, went down with a bang.

Only 7 bids were received, with the highest being $280 worth of cryptocurrency.

This has definitely called into question the stability of the NFT and reminded us that we need to be aware of the risks of acquiring such a virtual asset.

But the NFT has also proven to have its strong points in its history so far, so it's worth paying closer attention, mostly for the examples we'll look at below.

What are the applications of NFT in marketing?

In my view, from a purely marketing perspective, there are some very basic principles of human psychology behind NFT that have helped it become popular quickly.

Firstly, it provokes a "collector" type of consumer behaviour, whereby buyers want to be the first and the only. And even more - to be unique in the internet world.

Many aspects of the "STEPPS" model of content virality described by Jonah Berger in his book "Contagious" are also covered. For example, NFT is a "social currency" because people like to look good in the eyes of others, and this technology makes them possess something unique. Not to mention the potential emotion such a purchase could create.

And last but not least, trading NFTs can get us into the "league of cool". Yes, this is an often sought-after effect by brands - to look trendy, current and... well, cool!

All of this together comes to tell us why NFT has become a sales machine.

Naturally, we are not commenting here on the technological potential of NFTs in performing far more complex operations, for example, the purchase of real estate through so-called "smart contracts", but that is the subject of another article.

To be in the "league of the cool", Budweiser created their own collection with as many as 1,936 NFTs, each one unique, with historic photos and representing the year the company made its first keg. In late 2021, Budweiser also boasted the realization of a debut sale in the world of NFTs. Is it cool? I think so!

Companies like Taco Bell, Burger King, Clinique, Louis Vuitton and Marriott Bonvoy have started giving away NFTs to their most loyal consumers through their loyalty programs. Their technology ensures that these digital assets will never be lost and will be used as intended. Burger King even added QR codes on 6 million packages that lead to NFTs, and collecting them brings additional benefits to consumers.

One of the first variations of NFT marketing emerged with the collection of virtual collections of stickers with images of athletes. Something like the Panini football player albums that gained popularity a decade ago. On the NBA platform, fans can buy, sell and trade numbered versions of video highlights from NBA games, and one with LeBron James sold for as much as $200,000.

So far, the examples may seem to be of the "being on trend" type, but the applications of NFT marketing wouldn't stop there. Such digital assets can also be given for other consumer activities such as attending events, purchasing certain products, social media engagement, etc.

How important is digital marketing for NFT sales?

Having looked at NFTs as a means of engagement, it's our turn to ask how exactly such a digital asset is sold. The most important condition to follow here is to create interest (we can also say it as "hype"), and a lot of it, to make an NFT attractive enough for potential buyers. The interest reflects in direct proportion to the sales.

Several techniques would be effective in marketing NFT, here are what they are:

1️⃣ Online marketplaces for NFTs - this is the OpenSea platform where we can create a profile of our NFT. In this endeavor, excellent copywriting is required to prepare such a compelling presentation that turns into an irresistible offer for fans.

2️⃣ Communities - NFT fans share their knowledge and observations mostly in closed groups on platforms like Discord and Telegram. The main reason is that they provide convenient access to other people around the world who are interested in the same, without the redundant information.

3️⃣ Working with influencers - they can certainly increase interest in your NFT, especially if you choose to work with a more junior professional whose opinion weighs in and is followed with interest.

In summary, I would say that marketing NFT requires a consistent strategy as for any other product or service. The difference lies mainly in the approaches (community building, hype, PR) and the choice of appropriate engagement channels.

What is the future of NFT marketing?

While the prospects for NFT are not yet fully crystallized, there is no denying the appeal of this technology and especially its potential applications outside of digital art.

Let's not forget that NFT is considered part of Marketing 3.0 (along with blockchain and metaverse), which experts define as the future of digital communications.

Adding to this the increased demand for NFT marketers in the market, we can conclude that more and more companies will be looking into it and seeking benefits.

Have I managed to spark your interest in this new topic?

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