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The impact of NFTs on Digital Marketing

MetaMonarchIX February 26, 2023
 

The impact of NFTs on Digital Marketing

We live in an economic and social environment in a state of change.

From the metaverse to the progressive advance of artificial intelligence in the most diverse fields of our life, there are so many transformations that we can hardly keep up with the speed with which disruptive innovations appear every day.

It is in this area of ​​digital revolutions that the debate around the concept and application of NFTs grows.

To have a clearer perspective on this scenario, in 2021, the NFT market moved values ​​in excess of US$ 40 billion.

And this, at first, is just a first step, since we are talking about a technology that already influences a number of segments, including media and entertainment, fashion, retail, as well as the marketing universe itself.

But what are the possible benefits of non-fungible tokens for brands and how can their market positioning be influenced by this trend?

In this article, we explore several ways that the NFTs are impacting the way brands and influencers are marketing themselves in the digital world.

 

Let’s not confuse apples with oranges

Non-fungible tokens have a direct relationship with the development of cryptocurrencies.

While bitcoin and other examples of digital currencies refer to tokens that can be exchanged – that is, used in some kind of transaction, usually of an economic order – the NFTs are, quite objectively, unique digital assets, which cannot be reproduced and whose authenticity is guaranteed through encrypted blockchain codes.

In other words: we can understand NFTs are certificates that guarantee the authenticity of any digital element – ​​a photograph, a visual prototype, collectibles, among others.

The first application of an NFT dates back to 2014, when it was presented at an event on art and technology at the New Museum of Contemporary Art in New York.

Since then, non-replicable digital works based on NFTs have been commercialized for expressive values ​​in auction houses around the world and have attracted the attention of other market segments.

Digital marketers soon realized the potential of NFTs, both to drive advertising and to generate revenue. 

In this sense, they have been used to promote renewal as well as the repositioning of classic brands with new artists.

Involving your audience with concepts and ideas is a great charm in creating or renewing a brand. 

A company’s brand is certainly one of its most valuable assets. 

Developing a strong and remembered brand in a scenario where metaverses and NFTs are emerging is a very challenging task of constant dedication.

It is in authenticity that digital marketing sees the opportunity to generate value, brand lovers and personalization for brands and companies.

Your brand’s visibility is enhanced first and foremost through high-quality digital marketing.

Professor Philip Kotler, considered by The Wall Street newspaper as one of the 10 most influential thinkers in the business area, reinforces in his recent work “Marketing 5.0” the integration of the power of technologies to the new values ​​of humanity.

Such a junction, when talking about NFT, can form a unique and powerful bond with consumers and fans.

Opposing the reproduction logic, non-fungible tokens deliver the incomparable experience of owning something original that other people cannot have.

In addition, they are easily accessible, since marketing strategies with this technology can occur from any electronic device such as tablets, notebooks, or a Samsung cell phone.

NFTs can be viewed as a way to directly connect to your fanbase.

Ownership is a powerful idea and establishes a closer relationship between your customer and your brand. For example, NFTs allow musicians to sell their music directly to fans instead of going through streaming platforms.

In terms of value generation, NFTs contribute to the creation of the idea of ​​scarcity, offering something unique and creating an identity bond between brands and consumers. 

Consequently, from offering unique experiences to consumers, networks of brand advocates are being built and engagement with companies only grows in the face of the search for exclusivity offered by NFTs.