In the digital age, owning a virtual item brings the same level of satisfaction as its tangible counterpart.
In fact, more and more, digital booty is becoming more sought after, especially those digital items that are rare – or better yet – one of a kind.
Bring in the NFT – or Non-Fungible Token.
NFTs are digital assets that are not interchangeable.
Every NFT is unique and has its own specific characteristics. Due to its rarity, historical or artistic significance, one NFT may be worth more than another.
A lot more.
But what is the future of NFTs in general and, more specifically, how can digital marketing companies use NFTs to their advantage.
Let’s take a closer look.
NFTs: What Are They and How Are They Used?
NFT stands for non-fungible tokens.
A tech geeky term for something that can amass amazing value.
Much like any piece of property, they are digital assets that can be purchased and sold. Every NFT is uniquely identifiable by its token, which is a digital certificate of ownership.
It also holds built-in certification on the blockchain, which serves as proof of digital asset ownership.
NFTs represent actual art, music, in-game items, and videos. They are purchased and sold online and encoded with a unique code that makes them one-of-a-kind.
For a musician, an NFT can be a high-end version of a new album granting the owner lifetime front row concert tickets.
In the gaming world, an NFT can be purchased to secure the rights to an in-game digital character or “skin”.
One-of-a-kind digital artwork is also extremely popular. Artists of all ages and from everywhere on the planet are taking up the crypto art realm.
The world of sports is no different. NFT unlocks a replacement level of fandom where fans gain more tools to partake during a highly immersive sporting world and, at an equivalent time, are rewarded for their passion.
In the past, it had been more complex to exchange sports collectibles and memorabilia like cards and signed jerseys online for money.
Today, the authenticity of such items can be verified on the blockchain – because of NFTs – and execute peer-to-peer trades in seconds. The nature of NFTs upholds the ownership of rare sports collectibles and the attractiveness of such items.
“In light of the rise of blockchain technology and its capacity to store anything digital, now more than ever it is important for people who have valuable assets on file to keep them safe and, at the same time, to make sure they can reach them,” explains Brad Weber, Founder and CEO of Avita Group, a digital marketing Calabasas agency. “Since each token represents an idea or item, there is no need to worry about hackers. When created by whoever holds the private key, these ideas cannot be changed in any way.”
NFTs: A New Way to Reach Consumers
Digital assets are useful for a variety of purposes, including marketing campaigns, loyalty programs, and collectibles.
NFTs are changing the digital landscape because they offer marketers new ways to interact with consumers and offer more personalized, engaging experiences. For example, if you’re running an e-commerce store that sells sports gear, you could issue a limited-edition pair of running shoes as an NFT.
By doing so, your customers would feel a sense of excitement and exclusivity, making them even more likely to want the shoes. Additionally, you can use NFTs to reward your customers for loyalty or participation in your marketing campaigns.
NFTs are also ideal for creating digital collectibles. An NFT could be created for a character you like from a movie or TV show and then presented to fans of that franchise.
A key aspect of marketing with NFTs is that they encourage consumers to take part in campaigns, exchanges, events, etc., rather than just receiving them passively without doing anything with them.
There are many ways that NFTs can be utilized in marketing, as you can see.
NFTs help pave the path between digital marketing vs. traditional marketing, allowing marketers to engage with consumers in ways that were never previously possible.
NFTs: Is it Right for Your Business?
It is difficult to grasp that people are willing to spend hundreds of thousands, and sometimes millions of dollars on a JPEG image. For marketers to effectively market NFTs, they need to understand the fundamentals of how NFTs function.
To get someone to buy $50 worth of e-commerce products online, professional search engine optimization and e-commerce conversion rate optimization is always top of mind.
You need a perfectly formulated funnel, market research, marketing strategies, and seemingly endless content. This does seem to be the case with an NFT since it is a virtual souvenir that becomes personally significant to the customer.
The use of NFTs extends far beyond video games.
Marketers, brands, and even sales departments are incorporating them into their strategies. Through non-fungible tokens, brands rapidly establish authenticity by establishing unique identifiers for each token.
Businesses can use this to track products throughout the supply chain and to collect customer data securely and transparently. Plus, customers can use NFTs as loyalty rewards or discounts.
In the current NFT mania, small businesses have an opportunity to reap the benefits. The following are five ways that NFT technology can help your business grow and retain customers.
1 – Coupons, promotional discounts, tickets for events, BOGO deals, etc., are issued with counterfeit-proof features. QR codes or blockchain codes cannot be duplicated, tamper-proof access/discount assets with a wide range of applications:
2 – A digital loyalty card can serve as a customer loyalty program. After signing up, the customer can download the card to their mobile device. When they visit your business, they scan the loyalty NFT code to earn loyalty points. At certain thresholds, you can push rewards, discounts, or blockchain tokens to be used in-store.
3 – Creating cause-related marketing programs or supporting charitable programs with NFTs at the neighborhood, town, city, or state levels to spur geographic-affinity marketing or to support local charities.
4 – If you’re considering opening a second location or expanding your existing site, NFT campaigns may be a better financing option than a traditional bank loan. You can think of it as a scam-proof Kickstarter: A crowdfunding campaign where donors know and can track their money, which is only issued if certain milestones are reached, as defined in smart contracts created at the beginning.
5 – Marketing campaigns with sweepstakes or gamification: These types of marketing campaigns can be expensive to run and make more sense for large companies, such as McDonald’s franchises that participate in Monopoly game pieces or Publishers Clearing House, which uses sweepstakes marketing. NFTs can be an effective tool for gamification marketing for small businesses with a little creativity. For example, to drive customers to local businesses, a Chamber of Commerce could launch a digital scavenger hunt that involved dozens of locally-owned businesses. The possibilities are endless.
The world has been taking notice of NFTs. However, few people truly understand or know how to effectively utilize them despite the sudden surge in interest.
Long-term growth is the purpose of these tried-and-true strategies, not only attracting fleeting market attention.
Use this guide as a starting point to see how NFTs can be used to market your products or services, and get inspired by examples of how companies are already utilizing NFTs.
Marketers can use NFTs to reach their audience, increase awareness, and promote new products.
Can we count on them for the long haul, or are they just another blip on our marketing radar?
It will be interesting to see how they perform. But, big brands are leveraging NFTs in unique ways, and they deserve every business’ attention.
Before implementing new strategies like these, you may want to reach out to web conversion experts like Avita Digital to better understand your digital marketing strategy to best target the audience who will most likely utilize NFTs today, and in the future.
ABOUT AVITA GROUP
Avita Group is a digital marketing firm based in Calabasas, California. We specialize in organic Search Engine Optimization (SEO), Pay Per Click (PPC) campaign management, Online Reputation Management (ORM), website creation and conversion optimization.
The Avita Group team boasts a collective experience of over 25 years in the industry and has worked with a variety of multi-million dollar companies to help them improve their ROI, build better brand awareness, and mitigate negative online reviews and results.
Contact us today for a free consultation.