NFT
The market for non-fungible tokens (NFTs) may have started volatile from the initial hype; however with more than $500 million in NFT sales NFTs have changed hands in the past 30 days and aren’t going anywhere. And as more individuals and brands explore this bold new landscape, they’re finding fascinating use cases for weaving NFTs into everyday life.
Take Twitter Spaces for example. Twitter’s audio arm has become an attractive place for companies to connect with their greatest champions. Since Twitter Spaces is also where NFT discussion groups originate, companies looking to get into NFTs and are already on Twitter Spaces can use their digital presence to build engaging blockchain-friendly communities.
Really, community is what NFTs are all about. Early adopters of NFTs define and grow cultures and subcultures. As a business leader, you may not fully understand where NFTs are going. Nevertheless, you can’t ignore the fact that they are part of a fast-moving concept that can appeal to about a fifth of Millennial and Gen Z consumers. Since these are your future buyers and cheerleaders, you don’t want to ignore the possibility that NFTs can form stronger bonds with them.
This is easier written than done, to be sure. Jumping into NFTs with your marketing team members is not something that will happen without any forethought. Try these strategies to help you incorporate NFTs as part of your outreach.
1. Prepare for all the costs associated with distributing NFTs.
There is a misconception about NFTs that they are somehow just a matter of taking a digital photo. That’s not quite accurate. Yes, they are digital assets with visual elements. They are also much more because they require an investment of time and effort beyond just throwing together a few intriguing pixels.
Gideon Kimbrell, co-founder and CEO of InList.com, agrees that while NFTs can be minted for as little as $100, succeeding with any NFT initiative can be much more expensive. As he explains, “If your current client base consists of people who like old-fashioned art and collectibles, for example, you may need to enlist the help of experts to reach a new, younger demographic of NFT enthusiasts. This can easily turn into a marketing budget of up to $30,000 (or even more) to get you started with the right brand creation, storytelling, and creative direction.
One way to figure out how much to set aside for your NFT generation and deployment is to find out what other companies are paying. It shouldn’t take you long to do a little digging to find a more realistic cost analysis for your first NFT venture.
2. Incorporate your NFT into your brand aesthetic.
A big mistake some companies make with NFTs is relevance. NFTs are not “build it and they will come” marketing tools. The best NFTs released by the company have some kind of community connection to the brand.
Take Time Magazine TIMEPieces NFT Collections. Time releases a special secret word during Twitter or Discord events. Participants with digital wallets have a certain amount of time to enter this password during which Time can send them a limited edition NFT. The gamification of this process adds new excitement to the experience of being involved with Time online.
Time is hardly the only brand experimenting with connecting its brand to NFT proliferation. Professor Arun Sundararajan of New York University notes that so have Nivea and Budweiser successful in captivating target groups with smart use of NFTs. Again, your goal should be to ensure that the NFT makes sense within the context of what your organization offers and values.
3. Decide which marketplace makes sense for your NFT.
You can’t just email your NFT to users. You must transfer ownership through the appropriate crypto-friendly marketplace. OpenSea is by far the largest of the NFT marketplacesalthough Blur is step up his game.
How do you know which marketplace to choose, especially if you’re not familiar with NFTs on a personal level? One suggestion is to work with a marketing consultant or agency that has already built up some traction in the NFT arena for other clients. Another is to simply choose one that already exists and has a strong reputation. Or you can ask other entrepreneurial and founding colleagues for referrals.
Make sure the marketplace you choose has an audience that reflects your company’s target audience. Otherwise, your NFTs won’t have the right pull.
4. Think creatively when launching your NFTs.
Perhaps the most exciting aspect of NFTs is that there aren’t many rules to follow. NFT campaigns can be anything you want them to be. You are not held to a standard. That’s liberating — and probably a little overwhelming, too.
This is where it will be very helpful to do some research on other companies within and outside of your industry. See what works and what’s causing a stir. You may also want to tap into your employee base to see if anyone within your organization has embraced the NFT, digital wallet, and crypto craze. If so, that person will help you understand more about the NFT and Web 3.0 ecosystem, which can be a little hard to wrap your head around if you’re not knee-deep in it.
Ultimately, you want your NFT to be interesting and meaningful. The only way to do that is to try something and see if it works. It may take you a few spins before you know what’s right for your business. That’s fine as long as you go into the process with an open mind.
NFTs are unfamiliar territory for most companies. But so were social media accounts at one time. Instead of turning your back on the NFT and blockchain culture, lean into your imaginative side. There may be a place for NFTs in your corporate marketing and engagement strategy.
