Non-fungible tokens (NFTs) are popular parts of the new metaverse phenomenon, but few people understand their value and function. They might not always look professional, but businesses can use them as unique marketing tools to earn publicity and raise brand awareness. Here’s how your small business can get the most out of NFTs in your next ad campaign.‍

What Is an NFT?

An NFT is 100% unique, and equal trades are impossible. It’s a one-of-a-kind piece of cryptocurrency that proves ownership of a game, artwork, song or any other online collectible item.

NFTs have boomed in popularity for several reasons. First, they utilize blockchain technology, which could soon become integral to daily life. Global brands including Amazon, Microsoft and Nike have also participated in the trend, increasing its legitimacy.

However, the new technology has faced some backlash for its potentially harmful environmental impact. NFTs, cryptocurrency mining and other new online resources are significant energy consumers, calling into question their long-term sustainability.

NFTs continue to make waves in online circles for their individuality and intrinsic value despite these concerns. Some tokens have sold for hundreds of millions of dollars and become powerful status symbols in their respective communities. Marketers can take advantage of their popularity and grow their brands through NFTs in many ways.

NFTs in Marketing

NFTs are possessions that help people express themselves and join online communities. Marketing teams can tap into the social influence of NFTs to launch more interesting and interactive campaigns. Here are some common methods and examples.

Minting

Minting is the process of converting a digital file into a crypto collectible on the greater ethereum blockchain that all NFTs belong to. A business can develop its own NFT and start a bidding war among loyal customers, sparking organic engagements on social media and other online forums. Just one token can be the catalyst for a major brand turnaround.

Hundreds of big-name companies have created NFTs for users to invest in, including Twitter, Taco Bell and Adidas. These tokens have intrinsic value that brings people closer to the brands they enjoy and leads them to interact with other like-minded individuals.

The key to a successful minting campaign is creating hype around the NFT. The more people are excited about your NFT, the more valuable it will be. You must expose your newly minted token to your target audience on every relevant platform.

Growing a New Following

People are moving away from cookies and other third-party data collection methods, and first-party data is becoming the primary method for finding your target audience. Every popular NFT has a niche following, so your business must create one as well. 

Every user that buys a stake in your NFT can become a part of your new email list, text subscriptions and other traditional marketing tools that will experience overhauls with the new decentralized internet. Your old audience lists will become obsolete, but an NFT can be the attractive centerpiece for your revamped tactics.

Loyalty Benefits

More NFTs offer special perks for owners, shifting their focus from intrinsic value to real-world utilities that buyers can take advantage of. They essentially act as benefits programs for their investors, helping businesses establish a loyal customer base.

For example, owning a share of Adidas’ NFT puts you first in line for exclusive clothes and new product launches. The company made $22 million from its first NFT alone, thanks in part to these additional benefits. Other NFTs give you access to private discussion forums, learning platforms and other premium content.

Including practical perks will give customers more incentive to buy your NFTs and endear them to your brand more closely. The benefits should improve the longer a customer stays with you, just like traditional loyalty programs.

Smart Contracts

A smart contract is a code that runs on blockchain technology and creates secure transactions of digital assets like NFTs. These contracts are transparent, timely and safe, enabling marketers to develop ongoing autonomous interactions with people who invest in their NFTs. They can leverage more layers of commission to each NFT with little human involvement or additional costs.

Marketers can attach multiple smart contracts to an NFT, enticing users to make long-term investments and interactions with their tokens. The agreements are usually financial transactions that give a user a larger ownership stake, but they could also increase access to events and other previously mentioned benefits.

Paid Creators

Businesses can pay creators to buy and promote their NFTs, just as they do with social media influencers, YouTubers and others to sponsor their products. However, unlike those other sponsorships, NFTs give full credit to the original creator — in this case, your business. The more people you pay to increase your NFT’s exposure, the more commissions you will receive.

All re-shares will get credited back to you, compensating your business appropriately and maximizing your ROI. This cycle goes back to the main principle of NFT marketing mentioned earlier: More hype leads to more value. Quantity is more important than quality regarding NFT profitability, making marketers’ jobs much more straightforward.

New Technology Hasn’t Changed Human Behavior

NFTs and blockchain technology are new and exciting, but they haven’t changed human behavior. Despite all concerns about its long-term value and environmental costs, people have jumped on the NFT bandwagon just like they did with telephones, TVs and other innovative technologies over the years. 

NFTs’ current influence is too alluring to ignore, whether or not they are here to stay. Your next campaign should take full advantage of the phenomenon. Create your own tokens, grow your new-age following, implement benefits and smart contracts, and get other creators involved. These strategies will help you get the most out of your NFT-focused marketing efforts.