NFTs have become a new way to attract and build customer loyalty through a creative digital product. But also in a way of doing business in digital marketing, partly as a consequence of the impact generated by the pandemic. Do you know what exactly NFTs are and why they are bought and sold?
In this article we are going to delve into the reality of NFTs and how marketing strategies can be created and developed to publicize and promote them.
What are NFTs
NFTs are presented as creative digital products, which are also unique . The name responds to the acronym for Non-Fungible Token (from the English Non-Fungible Token ) and they are original digital assets, impossible to replicate and therefore unique, with a high market value. Its originality and uniqueness are certified by a unique coding.
Hence, they have become part of the marketing strategies of luxury brands, such as fashion, sports and automobiles. Today they are already used by brands such as McDonald's, Pizza Hut, Reebok, NBA, Twitter, Tik Tok or Formula 1.
NFTs represent tangible or intangible objects, such as digitized works of art, music, videos, animations, video games, digital cards, or real-world items.
The concepts of non-expendable property and tokens
It is important to understand the concept of non-expendable property that defines NFTs. Our legal system differentiates between expendable and non-expendable property.
Fungible goods are those that have a value based on their number, weight or measure . And depending on these can be exchanged. For example, money: a 10 euro bill is a fungible good, because it has been given a value and can be exchanged, it does not lose value and it runs out when used.
Non -expendable goods, on the other hand, are not substitutable and are not consumed when used, nor can they be substituted . They are non-fungible goods, therefore, artistic expressions, such as works of art: some are not equivalent to others and cannot be exchanged.
Tokens are units of value that are assigned to a business model, such as cryptocurrencies. In this realm of cryptocurrencies, Bitcoins represent fungible goods.
How NFTs work
NFTs work with the same technology as cryptocurrencies, the so-called blockchain or block chain.
It is about the use of a decentralized computer network, with blocks or nodes linked and secured thanks to the use of cryptography. Each block links to a previous block, as well as date and transaction data, and is by design resistant to data modification.
NFTs are assigned a digital certificate of authenticity, with a list of metadata that cannot be modified.
These metadata collect information about its authenticity, the author, as well as its starting value, the record of transactions made .
Therefore, an NFT will always have information about its first value and the cost it has involved at any given time.
Most of the NFTs are based on the Ethereum network and its blockchain chain. This makes it easy to operate and transact using wallet platforms that are compatible with Ethereum .
Experts claim that NFTs have become one of the most important crypto trends in 2021, with a growth of 55% .
Other studies estimate that almost 25% of the US population already has digital assets (NFTs, contracts, etc.) and crypto assets.
The number of users worldwide continues to grow . In addition, they are increasingly used to intermediate in the economy, and less to speculate.
We have already named its greatest characteristic, its uniqueness . So it is necessary for its creators to exploit all their creativity to attract potential buyers with the idea that they will be the sole owners of that specific digital product.
The value of originality to the product aimed at being an NTF also allows companies to explore new markets and execute marketing strategies that, if well executed, will be profitable in the long term.
Another advantage of NTFs is that they are adaptable for start-ups and those that have been in the market for several years.
Entrepreneurial businesses can use NFTs to gain new revenue through the monetization of content offered to the public as unique, while large companies can use them to further expand and position themselves in digital markets.
How NFTs are created
There are two options to create them: make them using any of the graphic content creation tools; or entrusting the work to a professional.
Getting it one way or another will depend on creativity and skills and aptitudes. It must be a striking and original product that arouses the interest of your niche market.
Once created, it is time to develop marketing strategies to sell it.
How to develop marketing strategies to sell NFTs
Hardly anyone doubts that this new trend in business is here to stay and brands are going to get into this new model of income generation.
Let's look at, on a practical level, some marketing strategies you can use to get NFTs into circulation .
Storytelling
The NFT is an original and unique product. As such, the best marketing strategy to promote it will undoubtedly be storytelling, telling its story. It is a good technique to arouse interest, add value to this unique creation and make it go viral.
Include creation in a calendar
This is a free strategy that anyone can develop.
There are NFT calendars where creators can list their releases. Calendars help creators and buyers connect with each other in the easiest way.
They are tools that put creators in contact with potential investors. One of them is NFTdroops . It has the simplest design, with no distracting ads. A place where people spend time browsing NFT events.
Social media
Other types of actions that are free. Social networks, and especially Twitter and Instagram, are presented as ideal platforms for the promotion of NFTs.
It will be necessary to develop an action strategy on these platforms, which can include creating content that adds value to users about the creations, joining communities in which to share the products created, being in contact with other creators, making promotions and, above all, everything, know your audience and their motivations.
Make collaborations
This is a strategy more focused on recognition than monetization, at least initially. It is about collaborating with creators from other fields and aligning brands can become a great project.
In addition to the mutual enrichment in the creative aspect, the audiences of the different participating agents will also be exchanged.
Enter thematic groups
Platforms like Telegram or Discord have thematic groups in which the NFT product can be shared.
Include influencers
If influencers in your niche become the social proof of your products, you will have a great impact in your promotion.
In this aspect it is important that they are people aligned with your product, your brand and, most importantly, your motivation and values.
Reach large media and specialized media
Distributing content about your NFT products and getting them published in popular media and also in thematic or specialized media is a form of promotion that will require an investment, but will achieve great reach.
Share content on own media
Sharing content on your own media, such as your website or blog, is essential to reach your target audience and also to achieve a good position in Google and other search engines.
To get Google to notice your content, you must investigate the keywords to use.
How will NFTs evolve with the Metaverse?
The Metaverse or virtual world will mean that users will be able to navigate through scenarios that will represent reality or new imaginary worlds, thanks to the use of devices.
Similar to what we can experience today with video games, where we can create avatars and be part of the games, the Metaverse that giants like Facebook or Google are creating will take on real functions, not just focus on fantasy worlds. Thus, virtual reality will become part of our real lives, in our personal and professional relationships and in business.
Companies will be able to create spaces in the Metaverse where users will enter virtually to interact and purchase products.
And this is where NFTs will be integrated as exclusive products and will become, even more, a way of monetization.
So now we can prepare...
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