NFTs: Just A Product of Meme Culture or a Powerful Marketing Tool?
From tweets worth $2.9 million to popular memes being sold for a fortune, NFTs have taken the world by storm over the last year and a half. While they’ve actually been around since 2017, these non-fungible assets seem to have taken the spotlight in the recent unprecedented era of digital acceleration. While we can’t say for sure if they’re here to stay or just another short-lived tech fad, it’s important that we explore their full potential as we ride the wave.
If you’re confused about what exactly an NFT is (like most of us are), I highly recommend checking out this article. Simply put, they are tokens that can be bought and sold on a blockchain such as Ethereum, that represent ownership of any type of digital asset (art, music, videos, gifs etc..) Proof of ownership exists as an immutable transaction record on the blockchain, meaning that even if the content is copied in some way, only the owner will have claim to the original. The “non-fungible” part just means that they are unique in value and cannot be traded for another asset.
While NFTs have mainly found their rise to popularity in art and music, they also have immense potential as a marketing tool for businesses looking to reach new audiences, nurture customer relationships and strengthen their overall branding. So here are 5 ways that NFTs can be incorporated into your marketing strategy (with examples).
- Experiential marketing
Automaker Acura recently announced that it would be offering limited edition NFTs to the first 500 customers who pre order their new Integra model that is to be launched in 2023. This comes with access to a virtual showroom in the Metaverse where customers can test drive the new vehicle and participate in an exclusive gaming experience. Acura is leveraging NFTs here to provide customers with an innovative way to interact with their brand, while also creating hype around their new product. Brand experiences such as this one are becoming more appealing to consumers, especially among the millennial cohort who are 75% more likely to pay for experiences over physical products.
2. Building Brand Communities
The concept of offering exclusive products and other perks to loyal customers has been a tried and true marketing strategy for decades. NFTs are simply replicating this concept in the virtual world, through the exclusive ownership of digital assets. The idea of being a part of a collective that is defined by certain characteristics or access to something in scarce supply is powerful, and can be vital for customer loyalty and retention for brands. We can see this in action with Adidas’ latest NFT initiative, where owners gain access to experiences in the Metaverse and virtual wearables, along with exclusive merchandise in the real world.
3. Reaching New Audiences
NFTs are not just a technological development, but a social trend that is strongly aligned with modern art and pop culture. Their appeal is not just limited to Millennials and Gen-Zs, but a very specific psychographic of tech-forward consumers who see the value to be gained from digital assets. NFTs are a new way for more traditional brands to pivot towards these audiences. An example of this is Bicycle, one of the world’s oldest card printing companies that recently launched its first collection of NFTs with the intention of reaching younger consumers.
4. A New Platform for Collaboration
NFTs could potentially give new meaning to the concept of influencer marketing, through collaboration with artists, content creators and even other brands from completely different industries. With the right strategy, brands can expose themselves to new audiences and create new consumer perceptions. Luxury brands have started to jump on this opportunity, with Louis Vuitton launching an NFT game in collaboration with artist Beeple, and even a virtual clothing campaign with popular video game franchise League of Legends.
5. Real World Utility
NFT marketing initiatives need not be confined solely to the virtual realm, but can also be linked to value creation in the real world. One of the household names of NFTs, the Bored Ape Yacht Club, is a good example of this. Ownership of a Bored Ape NFT comes with a variety of perks such as exclusive club and event access, merchandise and more.
Interest and intrigue around digital assets is a sign of the times. NFTs, like any other new technology, are far from being fool-proof and have their fair share of flaws (mainly in terms of their environmental impact and risk of scams). However, there is a strong case for their ability to create value, as more people start to understand the utility of blockchain and the metaverse as a whole. Marketers who stay ahead of the curve in regards to culture and tech always win, and NFTs are no exception.
