NFT is the new buzzword and everyone is apparently getting gung ho over it. As they have launched splashy incursions, brands like Gap, Coca-Cola, Adidas, Reebok, Lamborghini, and other consumer product firms would answer, “Yes, please.” Brands in the news, sports, and entertainment industries have also made changes.
It’s just a matter of time until you get questions about how (or whether) your brand’s content strategy should integrate NFTs.
Before you respond to the inevitable inquiry, you should be aware of some NFT fundamentals and how they might be used.
What is NFT?
The term “non-fungible token” refers to a token that is not fungible. Doesn’t it clear everything up? (No? I don’t think it’s for me, either.)
“A non-interchangeable unit of data maintained on a blockchain, a type of digital ledger, that may be sold and traded,” according to Wikipedia. Digital items such as images, videos, and audio may be connected with several types of NFT data units.”
Buddy eloquently compares an NFT to a house deed. An NFT establishes ownership of a digital asset in the same way that a deed establishes ownership of a physical object.
You don’t hold the copyright on the digital asset associated with an NFT just because you own it. It denotes that you are the owner of the original digital asset. An NFT “basically allows its buyer to assert that they own the original copy of a digital item in the same way you might possess the original copy of a piece of tangible art or the master file of a music recording,” according to NerdWallet.
The answers to the question of what ownership rights come with an NFT purchase are changing all the time. Anyone thinking about making, buying, or selling NFTs should read this carefully (and, ideally, get good legal advice).
NFT and Digital Art: An Explainer
Public attention is drawn to NFTs for digital art, collectables, and metaverse real estate or accessories. However, according to a recent Harvard Business Review article, firms who focus on using NFT collections to reflect their physical products in digital work (for example, NFTs for digital Nike footwear) may be missing out on a broader opportunity.
“NFTs might be the principal digital touchpoint between brands and their consumers — and one that is owned by the company itself,” the paper proposes. Instead of utilising NFTs to identify digital assets, businesses might use them to identify distinct physical experiences or objects.
The corporation would select what that pass in the form of an NFT would unlock in a brand scenario. It could be for a service or experience that your company would normally charge, such as an extended warranty or an event experience. Buddy explains, “You get this full experiential marketing thing.”
Bored Ape Yacht Club, one of the most well-known NFT initiatives, provides both a creative asset and usefulness in each token. Owners of Bored Ape NFTs get access to a social club that includes perks such as a private Discord channel where members can interact with one another.
NFT and Brand Strategy: The Evolution
While you are the best person to decide whether or not your brand’s content strategy should include NFTs, Buddy recommends making your decision based on the three Cs of content marketing: content, community, and consistency.
Buddy once again mentions Gary Vaynerchuck, who has cultivated his group for a decade with constant free content. His community was prepared when he released an NFT collection.
However, JK warns that brands would struggle with NFTs if they don’t pay attention to the fundamentals. That means not only hopping on the bandwagon because other brands are doing it, but also educating the audience about the value your NFT project offers for them.
Salesforce discovered the importance of NFT alignment with brand values the hard way. Salesforce, a socially responsible firm, discovered hundreds of its employees criticising its intentions to create an “NFT cloud” where creators could manufacture and sell tokens. Employees believed that the environmental impact of NFTs contradicted the company’s commitment to sustainability, which it had previously promoted in a Super Bowl commercial.
NFT and the Future of Marketing: Next Steps
What you should do with NFTs now is largely determined by your assessment of how (or not) they make sense for your audience and brand. It’s the same advice you’ve heard about getting involved in any new trend.
You might opt to go faster than someone whose audience is less connected to those circles, such as gamers, art collectors or enthusiasts, and those interested in connecting with blockchain-related components or hanging out in the metaverse.
Use these early days to discuss how NFTs might fit into your brand’s strategy, positioning, and values with stakeholders. To gauge your audience’s and consumers’ interest in and openness to NFTs, speak with them.