NFT’S and Branding
NFTs? Wait, what? The first question which pops up in your mind might be, what is an NFT? Hum, is it art? Is it a digital asset? Let me explain.
NFT is the abbreviation for non-fungible token. Again, plop!
Let’s break up the word, non-fungible means that it’s unique and can’t be replaced with something else. For example, you can trade a bitcoin for another bitcoin, and you will receive the same value. A piece of Dali art can’t be changed for another piece of art, it will not have the same value.
In simple words, it’s a piece of digital work (art is a great example, but it can be almost anything, from music to a beer can) located in a secure blockchain. These pieces can be sold within NFT platforms. It’s a way to own a piece of “something” in a digital world, more secure, and can sometimes be perceived as an investment if you believe its value will raise in the future or if it gives you privileges. If you are a brand manager, remember this word. A Brand NFT should include real-world PRIVILEGES.
Buy, why are they becoming important for brands?
Many brands are starting to create their own NFTs to create brand awareness. Lomit Patel, senior vice president of growth at Together Labs, wrote on his LinkedIn: “Marketers are already experimenting with NFTs to accomplish a wide array of goals — from driving brand awareness to increasing customer loyalty and even monetizing their user bases. Web3 will do today what social media did for brands in the early 2010s.” These are big words but do remember them.
Let’s see this with an example
Famous American beer brands Budweiser and Bud light:
In March 2022, hosted an #NFTBeerFest event at its flagship brewery. The event was only for holders of specific NFTs they have bought from these brands. Guests at NFT Beerfest have been promised free beer, tours of the Historic Soulard Complex, Clydesdale sightings, and performances by musicians Fresco Trey and Millie Go Lightly. This is a great example of privileges when buying an NFT created by a brand, the magic relies on combining this digital web3 world, with the real world. “In the future, really understanding incentives is going to be a marketer’s core skillset to acquire customers,” said HubSpot’s SVP of Marketing Kieran Flanagan on an episode of the Marketing Against the Grain podcast.
To answer the question, there’s still time for NFTs to go mainstream, but we will get there, as Facebook got us.
So, is your brand ready to create awareness and loyalty through NFTs?