There’s a huge buzz around NFTs (Non-Fungible Tokens) since the huge boom over 2021. Now our expertise and knowledge lie in social media but we’ll give you a brief explanation of what NFTs are. If you don’t already know, it’s well worth doing a bit of research. Effectively an NFT is a digital asset that is unique, and the owner of the NFT stores it in their cryptocurrency wallet meaning anyone is able to look up proof of ownership on the blockchain. It’s different to a cryptocurrency token or coin because 1 Bitcoin, for example, is worth the same as another 1 Bitcoin. With an NFT, each 1 has its own unique value that isn’t replicated. Very much like a piece of art. In fact, a large proportion of the huge boom around NFTs in 2021 was from artists selling their artwork as digital NFTs on the blockchain, some making an absolute fortune!
What do NFTs mean for Marketing?
As the concept of NFTs make their way into the mainstream, big brands are jumping on board and finding ways to add more value to their brand by providing unique digital assets to their customers. A possible reason for the NFT boom is the speculation that we’re very close to a new way of using the internet. Many people are referring to it as Web 3.0 or The Metaverse. It’s a really exciting concept and big fashion brands are anticipating that consumers will want to dress their ‘characters/avatars’ in official merchandise which is made possible with NFT technology. So brands, if NFTs take on and the technology integrates with our average consumer’s behaviour, need to be thinking about what unique digital assets they could offer that their customers would want to own and show off in a digital world. Then marketing these products will be the same as marketing physical or digital products is now – although who knows what marketing channels will work best in 5, 10 or even 20 years time…
What do NFTs mean for Social Media?
This is the big one for us. If you haven’t watched any of ‘Meta’s’ videos about the Metaverse, this is a good one to start with: https://www.youtube.com/watch?v=Uvufun6xer8 – strap yourselves in though, it’s over an hour long. It’s been some time since we were active on our blog and a lot has happened, so if you get all of your social media news here then you may not be aware that Facebook has changed their whole brand name to Meta. This came shortly before announcing their huge roadmap into the Metaverse using virtual reality to make their vision become, well, reality. If Meta are successful with their plan, and we don’t really see why they wouldn’t be, it’s going to change the way consumers and brands use social media whether we like it or not. The problem is, it’s very hard to tell what changes will happen this early on.
What should your brand be doing?
As it’s still so early, most small businesses need to approach with caution. We would never suggest going all-in on an idea when the future of the whole concept is still so uncertain, but you’d be stupid to ignore what’s happening in the digital world. Think about how your brand/business could potentially use NFT’s to provide a better experience for your customers or audience. When it comes to marketing anything NFT related, social media will be perfectly positioned – but there’s no telling just how intertwined social media and NFTs will be in the next 5 to 10 years…
We’re sitting on the fence on this one, and watching closely!
