People who run consumer-facing businesses might wonder how to use NFTs. Well, imagine if you could produce a unique piece of creative work every time you decide and profit from it! Not just that, but NFTs could take an integral part in the future of content marketing. This means that anyone with network access can view the NFT's information, yet the NFT cannot be accessed without the owner's cryptographic key.
NFTs are often created as picture files but they can also be linked to Twitter, or they could be MP3s, videos or other digital assets. NFTs open up intriguing new possibilities for digital marketers in terms of content creation and digital distribution.
How else can brands leverage NFTs and content marketing?
Through this new kind of dispersed media ownership and monetization, content marketing could take an exciting turn in the future. Any digital item is now worth what it sells for as well as the number of memes it inspires. TikTok videos can be valued based on the number of views and inspired copies they have received. As everyone puts their touch on it, each copy differs significantly from the original. The original video becomes more valuable and popular as more and more memes spring from it.
There has been interest in NFTs for digital art, collectibles, and metaverse real estate or accessories. However, according to a recent Harvard Business Review article, firms that focus on using NFT collections to reflect their physical items in digital work (for example, NFTs for digital Nike footwear) may miss out on a broader opportunity. "NFTs might be the principal digital touchpoint between brands and their consumers — and one that is owned by the brand itself," according to the report.
Utility NFTs can be described as NFTs that unlock something. Take Gary Vaynerchuk's VeeFriends NFT project as an example. Purchasing a VeeFriends NFT grants access to new features (e.g., a one-on-one coaching session with Gary, or access to an exclusive part of his Discord community). In this instance, acquiring the NFT is equivalent to purchasing a pass or ticket with added value.
In a brand scenario, the business would select what that NFT content (pass) would unlock. It might be for something your company would normally charge for, such as an extended warranty or an event experience.
1. Bored Ape Yacht Club
Bored Ape Yacht Club, one of the most visible NFT initiatives, provides creative value as well as functionality in each token. Bored Ape NFT owners get access to a social club with benefits such as a private Discord channel where members can speak with other members.
2. Grammy Awards
A free NFT collection for the Grammy Awards earlier this year included access to a special Discord channel. And one of the NFTs unlocked a "golden ticket," which paid for the winner and a friend to attend the awards ceremony.
3. Taco Bell GIFs
According to research, 83% of millennials prefer to conduct business with firms that share their beliefs. As a result, brands must explicitly support issues that they believe in, genuinely. While Taco Bell's foundation has been doing this for years, they took it to a whole new level by selling taco-themed NFT GIFs to benefit the Live Más Scholarship.
All of the GIFs were gone within 30 minutes of placing their 25 NFTs (called NFTacoBells) available for sale on Rarible (an NFT marketplace). Each GIF has a starting bid of $1. They did, however, all sell for thousands of dollars, with one selling for as much as $3,646.
Taco Bell's decision to create and sell NFTs as part of their content strategy was seemingly a wise one because it produced a lot of discussion in mainstream and in social media.
NFTs, like Taco Bell, can be used to kill two birds with one stone:
- Increase brand awareness
- Help a worthy cause
Is there a correlation between content marketing and NFTs?
Not surprisingly, several pundits were skeptical of the high prices consumers were paying for these one-time digital commodities, dismissing NFTs as a passing craze. However, if you look past the hoopla - and the price tags - NFTs may represent a big opportunity in content marketing. Each token has a distinct and clear ID, which has the potential to usher in a fundamental shift in the relationship between content provider, customer, and brand.
Because the token is 'non-fungible,' the digital product cannot be replaced by an identical thing, making it distinctive and potentially valuable. NFTs can include digital art, wearables, and other virtual objects, as well as music and video files. When NFTs are registered on an open blockchain ledger, crucial identifying information such as ownership, prior sales prices, and amount in existence is recorded.
For creators, the capacity to develop and sell unique digital work is a game changer. They now have unprecedented control over the ownership and distribution of their work, as well as insight into its life cycles. And it might lead to a slew of new partnerships for firms wanting to gain new fans in the digital realm.
Content creators and brands can interact under new payment norms, such as sales via blockchain networks, ownership, and sharing. Multiple parties can collaborate using an NFT, merging everything into a unique token. These collaborations are just getting started, but they herald NFTs transitioning from the cacophony of 2021 to new strategic means of content creation and delivery. The potential for new revenue streams is apparent, but the brand loyalty and engagement that NFTs represent - a lifetime of value and storytelling logged on the blockchain ledger - has long-term benefits for content partnerships and marketing.
Brands can develop innovative NFTs that can be distributed through contests and promotions. Because of their uniqueness, NFTs enable a whole new degree of personalization, with marketers able to produce personalized things, tailor unique information, and assist people with self-expression.
Burberry produced a range of NFT accessories for the multi-player game Blankos Block Party. Now imagine the engagement potential of a fashion company collaborating with an artist or designer to reward its clients with personalized digital gifts.
NFTs allow brands to completely boost their game in terms of content creation, loyalty and experience. NFTs with unique IDs can be used as membership cards or forms of payment, opening up new possibilities for CRM programs, rewards, and retention. NFTs can hold data that traditional loyalty programs cannot, and the NFT platform POAP makes use of this by linking event attendees with experiences. Much has been made of Kings of Leon's decision to release their new album as an NFT with a package that included unique bonus tracks and videos for fans.
Should NFTs be part of my brand's content strategy?
Now, firms seem to be utilizing NFTs to strengthen their ties with their most ardent customers—a real-world application that may surprise skeptics while delighting executives.
While the sale of NFTs has ebbed and flowed, peaking in 2021, stabilizing in 2022, many businesses see them as marketing tools rather than investments.
For the time being, the marketing benefits of NFTs appear to be similar to putting up a web page in 1995: gaining some nerd praise while the rest of the world watches on in awe. However, web addresses quickly became significant real estate assets. Information gained about clients and web3 aficionados via NFTs might also become valuable assets.
While still in its early days, the NFT craze might be just the right choice your brand makes right now. Relite aims to empower businesses via NFTs, a $300B market, by opening the funnel for NFT mainstream adoption. We help retail brands like yours implement a custom-tailored NFT strategy that will keep you on the edge of competition.
Want to sell NFTs on your website? The Relite creative team is here to assist! If you are not sure where to start but you want to innovate, contact us today to discuss the best NFT strategy, specially tailored for you.