Importance of Why NFTs Should Matter to Marketing and Media Professionals (Even If You Have No Idea What an NFT Actually Is)

 I describe how NFTs have rising to stardom and taken business, finance, art, and media by storm.

But for the uninitiated, let’s start at the beginning. NFT stands for “non-fungible token.” Non fungible means it is unique and cannot be traded for another, and token, as it’s tied to a blockchain. If you’re still confused, think of it like this: a dollar bill is fungible because you can trade a dollar for another dollar. But the Mona Lisa painting is non-fungible, because you can’t trade it for a Picasso.

Like the Mona Lisa, an NFT is a one-of-a-kind. 

humans are generally willing to spend large amounts of money on things that have objective value. And when it comes to the value of an NFT, the beauty is in the eyes of the beholder. It’s artistic, subjective, perception-based—when it comes to getting a customer’s attention, it’s the sizzle, not the steak.

If you strip away the steak metaphor, marketing is about connecting with consumers, while also respecting shareholders and company mission. Although on the surface, the tech behind NFTs may sound obtuse or confusing, there are a variety of ways NFTs can help you achieve simplicity and amplitude in your messaging. 

First off, contracts in general with buyers or brands can be made easier using blockchain technology. A “smart contract” has certain ramifications or milestones in place during which payments must be released, or even a certain number of ad spend that gets triggered when milestones are hit.

A smart contract (like those made by companies as large as IBM) can be customized to do anything you want. They can and probably will one day take the place of contract attorneys. Musical artists benefit from this enormously. Imagine having royalty payments being automatically dispersed, as opposed to needing to track them down. 

Then there’s using NFTs in and of themselves as marketing promotions. You can jump on the trend, as Taco Bell did, and sell art to promote your brand or raise money for charity. You can also sell NFT versions of your wares like Gucci did when they sold a handbag in the Roblox universe. The only difference is that Roblox has its own digital currency, and recently had an IPO, as well, representing the best of both virtual and actual financial worlds.  

You can also hold a contest where the prize is an NFT, which can result in an increased amount of listenership/viewership and nice lead generation. Or you can sell an experience that ties itself to an NFT, like a concert ticket, which then has add-ons later, such as a tokenized collectible.

So where does this leave you? When it comes to NFTs, the unfortunate barrier to entry is first and foremost wrapping your mind around what an NFTs even is. The good news is, you’ve (hopefully) done that now. Bravo! Now, you have an opportunity to take a look at the digital services your company provides—or could potentially provide—and assess if blockchain-backed tech may make things easier or more interesting for your audience.