Are You On the NFT Bandwagon?
When it comes to non-fungible tokens (NFTs), many people in marketing are asking themselves, “What in the world are they?” The simple answer is…it’s complicated. But we’re here to help you get a better understanding of NFTs, their overall value, and how they are being used by advertisers.
What Are NFTs?
An NFT is a special kind of cryptoasset in which each token is unique and cannot be replaced with anything else. This is different from other forms of crypto like Bitcoin which is fungible, meaning you can trade one for another and you’ll have the exact same thing. An NFT can be anything digital such as drawings or music but the current hype around them is having the ability to use technology to sell digital art.
What’s the Value?
The value of an NFT really depends on whether you are an artist or a buyer. If you’re an artist, it gives you the opportunity to sell your work and get paid a percentage every time it is sold or traded thereafter, meaning that when your work gains popularity and its value goes up, you benefit.
If you are a buyer of NFTs, one of the greatest benefits is that you are financially supporting the artists you like. It also allows you to have some basic rights like being able to post the image online or use it as a profile picture. But if you are a collector of NFTs, it ends up being like the stock market in that you buy it one day and hope the value increases so you can eventually sell it for a profit.
NFTs in Advertising
Since NFTs grew in popularity in 2021, many brands such as Taco Bell, Coca-Cola, Campbell’s, Microsoft, Nike, and even Barbie have introduced NFTs. By utilizing NFTs, they provide users with a new experience while increasing brand awareness and affinity. In addition, if a brand decides to use NFTs in their advertising, they can do so programmatically across various digital platforms. Ads can be monetized multiple times by creating NFTs allowing them to further their equity in storytelling with collectible assets or create buzz for any upcoming events or product launches. In the end, NFTs create a whole new stream of revenue for brands through digital offerings which can complement their physical offerings.