How Can NFT's Build Your Brand
by Deepti Dutt
What is NFT?
A Non-Fungible Token (NFT) is a digital file in the blockchain, which allows “NFT collectors” to own unique, limited-quantity digital assets that grow in value through a bidding process.
NFTs are cryptographically authenticated, which means the creator of the NFT is verified. These unique items, like property or a fine piece of artwork, can only have a single official owner at a time. With identification codes and metadata, these digital artifacts are one-of-a-kind.
Why are NFTs valuable?
The biggest reason for the fast adoption and increased sales of NFTs is the appeal of it being a “collectible”. Basic theory in economics states that the scarcity of nearly anything in demand bids up its price.
NFTs create value as they cannot be destroyed or counterfeited but can also be easily gifted, transferred, or sold. Ownership is publicly verifiable information on the blockchain for all to see.
Are NFTs here to stay?
According to the Harvard Business Review, NFTs are going mainstream in 2022. You can now show off your NFTs in Twitter or Reddit as your profile picture, with Facebook and Instagram soon to follow. Driven in part by FOMO (fear of missing out), mass-market players and luxury brands are joining in and launching NFT collections at a dizzying pace.
That being said, the vast majority of mainstream consumers are still struggling to make sense of the 2021 NFT world of Bored Apes and CryptoPunks. The usability of the underlying blockchain technology still has a long way to go to be consumer-friendly.
But don’t make the mistake of assuming that NFTs are a passing fad! While the current hype cycle might be fueled by crypto-millions and Discord-obsessed Gen-Z users, NFTs are projected to be the killer app of Web3 and its gateway into traditional commerce.
How can NFTs boost your brand?
However big or small your brand is, NFTs are becoming vital to businesses and organizations because they can represent a wide range of creative products, including audio, video, images, 3D models, fashion design, and various other kinds of creative work. This has given rise to new methods of brand storytelling and consumer engagement, which are two of the most important elements of an effective marketing or community engagement strategy.
Here are a few ways how your business or organization can use NFTs for marketing and expanding their brand awareness.
1. Generating Brand Awareness
Every brand has an exciting brand history, which can be captured as a digital image, video, audio file, etc. You can then mint those assets as unique NFTs and offer them to your brand’s fans and consumers.
This is a new and unique form of storytelling that has a significant impact on brand awareness since users walk away owning a piece of your brand’s history. This also has the advantage of potentially generating revenue for your business.
2. Tokenizing Events
Gary Vaynerchuk a Belarusian-American entrepreneur, author, public speaker, and influencer, uses NFT to tokenize the admission to his events. He minted NFTs that double as admission tokens or tickets for different workshops and conventions that he organizes.
Using tokens for admission to his events is a creative way to use NFTs to increase the number of people who interact with the brand.
For example, suppose you are the business owner or run an organization and want to build your brand awareness. One way to accomplish this would be to organize periodic events like workshops, courses, meetups, or any other events, your prospective clients might like. Event organizers can mint the required number of NFT tickets (it could be any type of digital asset like images, audio recordings, video, etc.) on their choice of a blockchain platform. They can code the NFTs to set a sale price or run the sale as an auction where anyone can start a bid for tickets.
3. Organizing NFT Contests and Giveaways
NFTs are quickly becoming a thing, and many see them as a way to diversify investments, which explains why they’re so popular. This creates the opportunity of attracting large crowds to your brand or business by offering unique and collectible NFTs for free or as a part of a contest in which users will need to interact with your brand somehow.
For example, you could mint these NFTs to allow the owner of the NFT, access to an exclusive convention or event where your brand will be present, or you could use the tokens to provide exclusive one-on-one sessions with brand representatives, or even the brand influencers.
4. Mission-Driven NFT Campaign
Even though NFT’s are a great way to generate revenue for-profits, Many brands and organizations are running NFT campaigns, where proceeds from the campaigns are donated for charity. Not only is this an excellent way to inculcate a brand as a valuable asset to the community; it has become an essential strategy for attracting today’s consumers, who are four to six times more likely to purchase from mission-driven brands, as well as tech-savvy millennial and Gen Z buyers.
Wading into the murky waters of NFT will seem daunting at first. Over time, businesses, organizations, and brands must figure out what works for their brand marketing through trial, error, and observing what succeeds and fails for others. It is predicted that having NFTs will be like having a website in 2003 and having social media in 2013.
The good news is that the true impact of NFTs is predicted to gradually unfold over the next few years, and there’s plenty of time to figure the space out. Your eventual audience will be the entirety of your existing and future customers, and will not be constrained to today’s crypto community. Do not measure your success by the current NFT prices on OpenSea. Rather, orient your metrics towards those that better illuminate a future in which NFTs anchor all the real-world products and experiences while extending them into the digital world of your choice.