The use of non-fungible tokens (NFTs) in marketing has grown over the past 12 months and so has the confusion surrounding it. Many companies, stimulated by the hype and the "fear of missing the train", have launched their collection of NFTs, without a real strategy. But is this really the right way to use them? Will it bring value in the long term, beyond just economic speculation? Let's see what NFTs really are and how they can be used effectively in today's and tomorrow's marketing.
What is a non fungible token (NFT)
NFT stands for non-fungible tokens: we can translate them as tokens that represent the deed of ownership and the certificate of authenticity, registered on an immutable and decentralized database (the blockchain), of a unique and specific asset (for example a digital artwork). In fact, non-fungible means that they are not interchangeable with each other in the same way.
Put simply? NFTs are certificates of ownership of a specific asset. Consequently, I cannot exchange one certificate for another or divide it into parts and have the same thing, unlike what happens for example with cryptocurrencies or physical coins that we use every day, which are called "fungible" as they can be exchanged in the same way with each other (e.g. if I exchange one euro for another euro or with two 50-cent coins I always have the same value, one euro, same thing if I exchange a Bitcoin for another Bitcoin).
There are different types of NFT, the most "talked about" ones are called "collectibles", a type of NFT that has achieved popularity thanks to Meta, the spread of the term Metaverse and the concept of digital alterities. Collectibles can in fact be associated with multimedia content such as music, videos, images, memes, or objects within a video game, such as the lands of Decentraland or Sandbox.
To learn more about what an NFT is, what types exist and what their future will be click here.
(Image Source Videogiochi italia)
Why use NFT collectibles in marketing?
The technological landscape is constantly evolving and consequently also the way in which people, and in particular the new generations, get information, meet and settle their purchasing choices. As history teaches, the great changes in the digital world are driven by the world of video games, which are leading communication tools to evolve and change faster and faster. Consequently, in order to emerge, brands need to adapt to new languages that allow them to enter into a relationship with virtual communities.
In fact, it is estimated that, in Italy alone, 15.5 million people, or 35% of the Italian population between the ages of 6 and 64, have spent part of their free time playing video games (source IIdea, Italian Interactive Digital Entertainment Association). Definitely a target not to be underestimated, especially for those targeting younger age groups.By developing a strategy around NFTs, brands can therefore:
- reach new targets,
- increase brand awareness and perception,
- build loyal communities and increase user-generated content, as communities become self-promoters of brand value,
thus starting to build their future in the next technological paradigm: the three-dimensional digital world.
(L'esempio del mondo virtuale creato da Nike: Nikeland)
How to use NFT collectibles in marketing
As we said, NFTs are "certificates of ownership of an asset" and today, when we talk about NFT, the association with the world of virtual contents, the so-called NFT collectibles, or certificates associated with digital assets such as images, is immediate. videos, memes, music and, in particular, 3D objects.
Thanks to the rebranding of Facebook in Meta and the attention to the theme of the Metaverse and virtual worlds, in 2021 the sales generated by these types of NFTs reached 40 billion dollars. The hype created around the topic has led many companies to act and invest in the race for fear of missing the train, giving life to their NFT collections without a precise vision, consequently leading more and more companies to join in this crazy race to 'gold.
However, a first step is not a strategy: it is important to associate non-fungible tokens with a value that is not only economic or in any case linked to collecting, the purpose for those who buy a company's NFTs must not be a future resale at a price. higher, it is necessary to give it a function. For example, NFTs can be used to certify the purchase or possession of items within a branded game, to allow players to differentiate themselves from others, customize their characters or take advantage of particular skills, or they can be purchased. and exchanged for real items, entrance tickets, unique gifts and bonuses, special events, discounts or can be used to certify the authenticity of a real item.
Some examples
Let's take some practical examples: among the many brands that have already successfully exploited NFTs in marketing figure Nike: the brand was the first user of non-fungible tokens in 2019, the occasion was the CryptoKicks campaign, during the sale of real shoes came alongside the sale of tokens that proved their authenticity. Subsequently it was the turn of Pringles, who created a collectible taste: the purchase of the token allowed you to have, in reality, one of the 50 limited edition tubes. In both cases mentioned, the purchase of an NFT had a very specific purpose, to provide the consumer with a unique and innovative brand experience.
NFTs can make a marketing campaign much more attractive to a digital target and beyond. Another great marketing frontier has opened up that will bring unprecedented developments over the next few months. Beyond the speculation that is emerging behind NFT collecting, to successfully exploit what will be, in the near future, the new technological paradigm, it will be increasingly important to have a strategic and valuable vision, which meets the interest of digital communities.
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