You’ve probably heard of the term NFT, and with each passing day, more and more people are becoming interested in and discussing it. Why is it a hot topic of conversation? What are NFTs, exactly? What is the best way to use NFT? Why should marketers be concerned? Is it just another tech craze or a buzzword? This comprehensive guide will answer all these questions regarding NFT and how it can be used.
What is NFT?
NFT stands for (Non-fungible tokens) and refers to the one-of-a-kind digital assets created on the Blockchain network. These tokens are non-interchangeable and can only be bought and sold on the NFT marketplaces through a virtual medium. Users have the option to create, mint, sell or purchase digital assets and collectibles on this platform.
Let’s use an example to help you comprehend this definition. Suppose you want to buy the Mona Lisa. The fact that there are only one original adds to the painting’s worth. Even if there are millions of prints of the Mona Lisa, you will almost certainly not possess every single one; you will only own the original.
The situation is similar with NFTs, except that everyone has agreed on which version of the digital file is the original. Other people can still use whatever NFT you buy because you own the original tokenized version.
What Can Brands and Marketers do With NFTs?
The basic element of any realistic marketing strategy is to provide meaningful experiences to followers and consumers that go beyond your brand’s products or services.
It helps you create communities and relationships that lead to loyalty and support, as well as increasing customer lifetime value.
This is exactly what NFT provides. While it may not result in a quick ROI, it can play a significant role in supporting all other efforts aimed at generating conversions and revenue. You can do the following with NFTs
Create new and unique brand experiences
NFTs may become a part of your brand storytelling, bringing it to life through something tangible that people can own and that represents their brand experience.
Expanding brand awareness and loyalty
Due to their uniqueness, NFTs provide a completely new level of personalization, which can result in increased brand awareness as well as loyalty and advocacy.
Encourage follower interaction and community building
Create awareness by leveraging your brand by allowing user-generated content, soliciting feedback from your community on the types of tokens they’d like to see and own or offering them as rewards in crowdfunding campaigns and contests.
Develop your brand’s image and support social causes
Modern consumers place a high emphasis on whether a brand reflects their values. By donating NFT earnings to charity, you may demonstrate your company’s commitment to social causes. You may also ask artists to create tokens for your business and compensate them for the visibility and revenue generated by their work.
Ignite interest in your brand, its services, and products
One of the primary goals of NFTs is to boost conversions and drive revenue. Curiosity or interest in the brand is naturally produced as it enters the NFTs space and provides new experiences to the community.
How Brands are Utilizing NFTs with Examples?
NFT Taco bell
Taco Bell, which is known for its daring digital marketing stunts, released NFTs to commemorate the return of potatoes to their menu.
As a result, they were the first fast-food chain to embrace the NFT trend. All NFTs had been claimed in less than 30 minutes, with one of them selling for as much as $3,646, and being resold for as much as 10ETH.
Robert Mondavi and Bernardaud join hands
The Robert Mondavi winery collaborated with the French luxury porcelain business Bernardaud to create a limited series of wines in magnificent Limoges porcelain.
Each of the 1,996 wines has an NFT attached to it, designed by artist Clay Heaton, that serves as a certificate of ownership and verifies the wine’s origin and authenticity. Individuals receive their bottles from the winery after receiving their NFT.
Aside from their artistic value as digital representations of the wines, the NFTs are also meant to serve as a deterrent to counterfeit wines.
Conclusion
Finally, we can state that NFTs provides marketers with a variety of strategies to reach their target audiences, raise awareness, and even push new product lines, but the real question is if they are here to stay or Are they merely another blip on the marketing radar? Only time can provide an answer to these questions. At this point, we can say that major brands or businesses are utilizing NFTs in clever ways, so it’s worth keeping an eye on.
Aside from that, whether it’s content marketing, social media marketing, Search engine optimization, or digital marketing, there’s a lot to think about. Stellar Digital offers services in each of these areas. We have a skilled team of professionals who will provide you with the most effective solutions for your project.
