Brand & NFT Matchmaking
TL;DR
Oil and vinegar, windows and bricks; Brands and NFTs just don’t mix.
NFTs offer a unique opportunity for brands to connect with their customers and create a more immersive and interactive experience. However, there are some risks to consider when using NFTs, and these risks have most brands still sitting on the sidelines.
A web3 creator sits down at the dinner table and asks the oldest person there……
“Have you ever heard of NFTs?”
“You mean like cryptocurrency?”
If this sounds familiar, then you know the face on the cat pictured above is accurate. Explaining NFTs to web2-friend can be frustrating to say the least.😩
It’s important to note — Non-Fungible Tokens are not crypto and blockchain is not all about currency. After a couple of years trying to explain countless use cases using web2 analogies for NFTs, I’ve decided the problem isn’t the technology — it’s the naming convention.
For web2, NFTs have become synonymous with Cryptocurrency and all the speculative nature that comes with it. For this reason I elected to fundamentally change how I speak about NFTs. Starting with dropping the acronym NFT all together. Instead, I now describe the value facilitated by the technology, and that value is digital ownership.
So, could it really be just the name?
No, it’s not all about the name and here’s why.
NFTs have been all the rage. With prices reaching astronomical heights, it’s no wonder that brands are clamoring to get in on the action. However, NFTs are notoriously difficult to explain, especially in marketing. This has led to a number of high-profile NFT launches being met with confusion, and even ridicule. For example, look no further than Logan Paul’s CryptoZoo or Jake Paul’ Stick Dix as evidence.
Fast forward to today, brands currently don’t want to be associated with something that the general public doesn’t understand. As a result, they’re staying away from using the term “NFT” altogether. This decision could lead to competitive advantage challenges for brands as NFTs could very well be the future of digital assets. But for now, brands are content to let others take the lead while they sit on the sidelines.
Here’s a list of 10 benefits for brands considering Digital Ownership Technology (NFTs) to help advance advocacy and grow community.
10 current benefits for Brands using NFTs
🔟Brands can use NFTs to create unique, one-of-a-kind experiences for their customers.
9️⃣Brands can use NFTs to reward their community for their loyalty and support.
8️⃣NFTs can give customers early access to new products and services.
7️⃣NFTs can offer exclusive discounts and deals to long-term supporters.
6️⃣Brands can use NFTs to create custom-made products and services accross different forms of customer statuses or tiers.
5️⃣NFTs could offer private, VIP experiences.
4️⃣ NFTs can give customers and fans the opportunity to be featured in marketing campaigns.
3️⃣Brands can use NFTs to allow members to vote on and influence company decisions or future roadmap.
2️⃣NFTs can give customers the opportunity to win prizes and giveaways.
1️⃣Brands can use NFTs to build a community of customers and fans who are passionate about their brand.
In contrast, here are the risks currently causing brands to shy away from actualizing the benefits.
10 current risks for Brands using NFTs
🔟Lack of understanding or interest from the target audience.
9️⃣Being early to market and not having a competitive advantage.
8️⃣Being late to market and losing potential customers.
7️⃣Not having the necessary infrastructure in place.
6️⃣Not having a clear strategy or value proposition.
5️⃣Not having the right team in place.
4️⃣Not having the right technology or partners.
3️⃣Not being able to scale due to high costs.
2️⃣ Losing control of the NFT.
1️⃣Fraud and scams (yes, these are still a very big problem).
In summary, there’s much to consider and the current landscape is best suited for those who enjoy high-risk / high-reward markets. Having had the opportunity to work on the frontlines of web3 the past few years, I personally am all in on NFTs and the future of web3.
So what does the rest of 2022 look like? I remain optimistic that digital ownership via NFTs will continue to grow despite the current bear market.
Several projects are underway that could bring major advancements to the space, supply chain, and creator economies, including the development of new standards, improved scalability solutions, and increased adoption by mainstream platforms and businesses.
Blockchain is the future operating system of the world and a digital public good.
As a digital public good, web3 builders, creators, entrepreneurs and innovators remain hard at work. Work that’s improving the standards of blockchain to help ensure contribution is sustainable so national and international development continues. I call it unification through decentralization.
Keep your head up web3 pioneers. The future is bright. ✨🌍🌎🌏✨
