NFTs are making waves in the modern digital world and for good reason.
They cross boundaries between art and surrealism, digital marketing and cryptocurrency, ideas and tangible fantasy.
NFTs are something of a mystery, but one thing is for certain — their market value is booming. In fact, as of February 2022, NFTs have amassed $4 billion in total sales, showing just how much people are willing to spend on these slices of historic real estate.
Their value is good news for business owners who want to find a new way to market their company, gain new clientele, and make their footprint on the internet.
But before you create an NFT marketing campaign, it’s important to understand how they work and the excitement, or hype, around them.
Keep reading to learn more.
What are NFTs?
NFTs stand for non-fungible tokens. This means that they are completely unique, there’s only one of them in the world, and there’s only one of them that will exist forever.
For instance, think of a mass-produced Starbucks cup. They are a dime a dozen, and the more that are produced, the more they lose their value. You can buy the same plastic Starbucks cup anywhere in any store.
However, think of a painting by Van Gough, or even a limited edition Starbucks cup that is hand-painted by an artist, or was held in Elvis Presley’s hands before he died.
By very definition, there is only one of these in the world, meaning they are not replaceable and non-fungible.
The same goes for NFTs, which can be moments in time, moments of a live experience, singular art pieces, or any type of artwork that is unique and irreplaceable but can be bought and sold through the blockchain.
The Difference Between NFTs and Art
Unlike art, NFTs can take on virtually any medium, whether that’s tangible or intangible, through a digital art piece or not. These different mediums can include:
- Facebook Posts
- Moments in history (more on this and the NBA later)
- Video games
- Other types of creative work
People can choose different mediums to sell or buy, meaning businesses are highly flexible in the types of NFTs that can market.
For instance, Twitter CEO Jack Dorsey sold his first-ever tweet for $2.9 million in March of 2021.
just setting up my twttr— jack (@jack) March 21, 2006
If someone is willing to spend money on something that is free for everyone to see, and interact with, then how do they know who owns the NFT?
This is where we need to explain the blockchain a bit better.
What’s The Difference Between Cryptocurrency and NFTs?
Many people might be confused as to whether or not an NFT counts as cryptocurrency.
While an NFT can be traded among other web platforms such as OpenSea, much like cryptocurrency, they are not the same.
Cryptocurrency is Not Non-Fungible
By very definition, an NFT has to be unique and “non-fungible,” meaning not replaceable, in order to qualify as an NFT.
On the contrary, cryptocurrency can be sold, bought, traded, and reproduced among sellers, which by very definition makes it a currency as opposed to a non-fungible token.
That is to say, one bitcoin is exactly the same as the other. Although valuable, cryptocurrency is limited to its medium as a replaceable currency, and therefore cannot qualify as an NFT.
The Blockchain is Used differently for NFTs
In addition, the blockchain, which is used to trade cryptocurrency securely without the use of a central bank, is intended to document who the buyer and seller of a particular NFT is.
The blockchain does help make transactions among NFT buyers and sellers secure. However, the blockchain’s main purpose in NFTs is also to show ownership (and therefore bragging rights) for specific NFTs.
What are the Benefits of NFT Marketing?
There is a wide range of benefits of using NFTs for digital marketers. Below are some of the ways your company can benefit from the production and sale of NFTs.
Freedom of Expression
How do you get people to notice your business and start buying from it? This is probably the golden question for marketing and one that cannot easily be answered.
However, there are some pretty obvious answers, and one is by offering unique products to customers.
NFTs are as unique as they come, not just because they are new forms of modern art, but because they can consist of just about anything.
For instance, “The Replicator,” by NFT artist Mad Dog Jones, is a digital art piece that shows a photocopier and coincides with a video version that plays 80s synth wave music.
It also replicates itself and produces new NFTs every 28 days, bringing a pretty good return on investment depending on the buyers and its value.
High Return on Investment
Perhaps one of the biggest benefits of NFTs is their relatively high return on investment in digital marketing.
While it’s true you will need to spend a bit of money advertising your NFT and reaching out to customers, the NFT itself virtually costs nothing to produce.
Think about CEO Jack Dorsey’s tweet, which was free to produce and sold for $2.9 million.
Companies have the power to sell virtually whatever they want as an NFT, so long as it is creative and people are looking for it.
Stand Out Among the Crowd
This brings us to our next point: people who buy NFTs appreciate good art and good investments.
Selling NFTs can help you not only attract a crowd but also help you stand out among the competition by creating a unique following.
Create a Unique Buyer’s Journey and Buyer’s Experience
Buyers are more interested in the experience of your company and the experience of buying, known as the buyer’s journey, rather than the product itself.
During the buyer’s journey, your customers might realize they want an NFT from your company because they are unique.
They might then decide to purchase an NFT for some reason or other, be it cool points or to own a piece of art that will increase in value, and then finally make the decision to purchase your product.
For buyers, the more unique the product and your company, the better. Nowadays, NFTs are the epitome of uniqueness and of advancing technology that continues to break barriers.
Draw Attention and Grow Your Audience
Finally, NFTs can help you grow your audience and draw attention to your company.
Attention is given to companies that think outside of the box and aren’t afraid to be a little edgy and hip.
NFTs are not only interesting pieces of art and currency, but they make a statement. That statement? Check out our company, because we’re aware of the importance of digital marketing and NFTs.
In this way, you’re also helping create a brand image.
How Can Companies Market NFTs?
Companies should learn, first and foremost, how to list their NFTs for sale. There are many popular platforms to register your company and sell your NFT, but the most popular include:
- Axie Marketplace
- Larva Labs/CryptoPunks
- NBA Top Shot Marketplace
Once you register with your company and put your NFT up for sale through .GIF or .JPG format, you will then need to market your NFT to potential buyers.
There are several methods to do so, including:
1. Influencer marketing
Use influencer marketing, since influencers have a steady audience and are more trustworthy among their followers.
Influencer marketing does take some investment since you will need to buy the loyalty and help your influencer get on board.
However, it is one of the easiest ways to market your NFTs and spread awareness on your company.
2. Paid advertisements
Use paid advertisements, which are costly but can lead to a good return on investment.
Ad spaces for NFTs should be used particularly on the internet, such as through social media and on web pages.
3. Press releases
The power of the written word is still very relevant, and writing press releases or doing news spots to announce your NFTs on sale can help influence purchasing decisions.
4. Search Engine Optimization (SEO)
By optimizing the sale of your NFT through keywords, for instance, “Online digital restaurant art for sale,” you can help increase the number of people bidding on your NFT while also growing an audience.
The beauty of NFTs is that you can help build an audience to purchase your NFT and to spread awareness on your business.
4 Examples of Brands using NFTs
There are various businesses that have successfully used NFT marketing, including:
Taco Bell sold 5 art pieces, including 4 GIFS, on the NFT marketing place Rarible. They sold out within 30 minutes for $1 each, and are now being resold for thousands of dollars.
Coachella sold a collection of NFT “Keys” that included lifetime passes to the music event. All of their 10 keys sold for over $100,000 each on a native marketplace designed specifically for Coachella.
The NBA is perhaps one of the most unique sellers of NFTs, having created the marketplace TopShot, where they sell “moments” such as a Steph Curry Layup or Jaylen Brown Dunk. These moments are presented as GIFS, but buyers own the moment! Figuratively…of course.
In November 2021, Budweiser released 1,936 unique digital beer can art designs. Now, 75% of them are being resold for profits.
NFTs are just one example of how the world is slowly moving to digital marketing, digital sales, and how we are prioritizing digital assets over real ones.
Companies must move forward with this, and learn how to adapt to these changing digital trends.
Read more about digital transformation and learn how to prepare your company for NFTs, and any other changes that might affect the marketing world sooner than you think.