How to boost brand awareness with NFTs
NFTs, or non-fungible tokens, offer a fresh approach to enhancing digital marketing. With their uniqueness, digital value, authenticity, and community aspect, NFTs have become a must-try for brands that don’t want to fall behind. However, it is crucial to approach NFTs correctly to make the most of their potential.
The remarkable growth of NFTs over the past couple of years has been extraordinary, with a projected market value of $80 billion by 2025. However, it is critical to develop a strategy defining the brand’s objectives, target audience, and expected outcomes before entering the NFT market. This guarantees that NFTs integrate easily into the company’s existing marketing efforts, building a strong relationship with customers and increasing brand awareness.
So, let’s explore how to make the most of NFTs for building brand awareness.
Improve your brand awareness with NFTs
Tokenizing your assets
Owning physical products is beneficial, but having them available in digital form is even more advantageous. By creating tokenized versions of its products, a brand can authenticate the quality of its offerings and provide users with a digital experience of those products. The concept of a digital twin is relevant in this context, and an authentic and certified product undoubtedly enhances the brand’s image. This approach allows the brand to enhance its tangible assets by converting them into digital form.
For instance, Pizza Hut has gained recognition by introducing NFTs in the form of digital pizza slices. Each slice represents one of their existing recipes. These highly limited-edition digital pizza slices were quickly embraced by consumers. At its auction, the most expensive slice is estimated to be valued at $8,824.
Ensuring the products’ authenticity
As previously stated, getting a digital version of a product via NFTs provides several benefits. The use of blockchain technology enables the collection of vast product-related information. This technique fosters consumer trust in a brand that gives proof of the authenticity of its products. This is especially important in the luxury market, which is susceptible to counterfeiting. Counterfeits not only ruin the brand’s reputation but also cost customers money by purchasing fake items.
A notable example of certification is the AURA platform launched by the LVMH group, which has played a crucial role in combatting counterfeiting. This blockchain-based platform issues a traceability certificate in the form of an NFT for each purchased product. This certificate provides buyers with comprehensive information about the product, ranging from its origin and raw material extraction to manufacturing, transportation, and logistics details.
Incorporating NFTs as rewards in referral programs
Many businesses employ referral programs to boost brand recognition and acquire new customers. Referral programs incentivize existing customers to recommend the brand to their connections in exchange for rewards. By using NFTs as rewards, the impact of the referral program can be significantly enhanced. Tokens, instead of traditional monetary rewards, can provide access to exclusive privileges, special offers, participation in raffles or contests, and more. Employing tokens as rewards also fosters a sense of community among customers, further strengthening brand awareness.
Harnessing the power of NFTs for storytelling
Take, for example, the case of Jack Dorsey, the co-founder and former CEO of Twitter, who sold his very first tweet for nearly $3 million. This transaction became an important news story in the NFT space in 2021, igniting the market’s growth, which surpassed $25 billion in sales. The tweet, being the inaugural message ever posted on the widely recognized social media platform, holds historical significance. Owning a piece of Twitter’s past, equivalent to possessing Mozart’s early composition or the original schematics of the Titanic, becomes a source of pride for someone. Utilizing NFTs in this manner can effectively enhance brand storytelling.
Promote NFTs in virtual environments
One way to build brand awareness using NFTs is by promoting them in virtual environments. These NFTs can be sold on various platforms, allowing users to purchase them with cryptocurrency and gain ownership of digital assets. By linking these digital product copies with the metaverse, users can display them on their avatars, increasing brand awareness among other metaverse users.
Collaborating with other brands
By partnering with brands that complement each other and leveraging their combined reach, businesses can expand their audience and enter new markets. This can involve joint marketing efforts or the creation of co-branded NFTs, providing mutual benefits and reaching new consumers who may not have been accessible otherwise.
Or, another effective strategy is collaborating with NFT artists to create customized digital collections. Similar to traditional influencer marketing, partnering with renowned NFT creators to produce limited-edition branded NFTs can generate significant brand exposure. Some NFT artists have gained such widespread recognition that anything they create becomes widely sought after.
In conclusion, NFTs provide brands with a unique opportunity to enhance their digital marketing efforts. From tokenizing assets, ensuring the authenticity of products through blockchain-based certifications, incorporating NFTs into referral programs as rewards, promoting NFTs in virtual environments, to collaborating with other brands or NFT artists. All these strategies help businesses leverage their distinctiveness, digital value, authenticity, and community aspect to enhance their brand image.
Disclaimer: The information herein is for reference purposes only and should not be considered financial, investment, or trading advice. Please conduct your own research and due diligence before making investment decisions. You understand that you are using the Information provided at your own risk.
