Breaking news! ‘Beeple’, the most expensive NFT sold at $69 million.
The news created tremors in the marketing world. As a digital marketing company in Ahmedabad with eyes glued on the trends, we couldn’t have missed it.
Brands are fast leveraging this new trend for various reasons. But before we go into all of that, let us quickly leaf through the basics of NFTs.
NFT – What does it mean?
NFT stands for Non-fungible tokens. The term refers to the fact that each NFT is distinct. Search another similar blog and you’ll read this explanation: a $1 note may be exchanged for another dollar bill, which means it is a fungible token that can be swapped for the same commodity.
However, let us make it easier for everyone to comprehend.
Assume a scenario, where you buy a book from a book store. Now, you go to another store where you can buy the same book at the same price because it is a fungible commodity, in other words, it is replaceable.
Now, consider a book you have that has your marking and post stickers. This particular book is not fungible. Why? Because it has your unique markings and notes meaning it is non-fungible. However, you as the owner of the book are free to sell it at your desired price, unlike fungible books that have the same price for any copy.
To simply put, NFTs are any digital commodity that is unique!
NFT and Blockchain
What makes NFTs such a catch is the technology it is built on i.e., Blockchain. Every transaction gets recorded in Blockchain as we know. Hence, NFTs owners have proof of ownership that cannot be edited, deleted, or manipulated in any manner; kudos to the blockchain.
It also implies that to buy or sell NFTs you need to use digital currency often coined as NFT currencies. Bitcoin is a fungible currency, which means it may be exchanged for other currencies; juxtapose to NFT. Although some of the first NFTs were built on the Bitcoin network, the bulk of NFTs currently rely on Ethereum’s smart contract features. The best cryptos for NFTs are Etherium, Tezos, Solana, Palm, Polygon, Artbitrum, Flow, and Wax.
Brands leveraging NFT
Other businesses have begun to dabble in digital collectibles as a side benefit of NFT technology. McDonald’s and Taco Bell, for example, were among the first to start NFT-related marketing, offering digital Big Mac and Taco Art to its consumers.
RTFKT, the first luxury NFT brand, has been a huge hit, with virtual shoes selling for the same prices as haute couture. Gucci, a Kering heavyweight, is also expected to release its own NFTs shortly.
So, why are they leveraging NFTs? Well, let’s understand some marketing opportunities they see here:
The first obvious benefit of NFTs is branding. It is a great innovative way to connect to your consumers and build a relationship by passing on ownership on something exclusive. As the digital assets of brands continue trading, the brand value keeps multiplying. Also, as early movers, they tend to earn more audience attention by dipping their toes in the latest innovations.
Sell virtual products
Considering the example of RTFKT, brands have the liberty to sell virtual products or digital visuals of original products opening a whole new vertical for sales opportunities. Rather than selling products, it is a way of selling value.
Brands can also use NFTs to sell other utilities. For instance, take GaryVee as a reference. He sells his drawings as NFTs with perks like access to a podcast interview with him, virtual hang out with him, public keynote appearances with him, and so on. He realized that people are interested in engaging with him in a unique way and so he leveraged NFTs. That’s a key takeaway for marketers and brands interested in digital marketing trends for 2022.
Shipping expenses, product fault rates, and storage costs are all eliminated using NFTs. As a result, depending on your objectives, they may be a better option. In the end, selling actual things isn’t as important to luxurious brands as selling the brands themselves, so selling virtually? Why not!
In the end, whether NFTs are just a fad or a whole new world of trade, only time will reveal. but for an organic reach of your brand, you have the best SEO company in India in front of you right now. So, why wait?