Are NFTs the next big thing in digital marketing?

NFTs is the abbreviation for “non-fungible tokens.” NFTs are stored on the blockchain, which includes information such as who purchased it, how much they paid for it, and how much they sold it for. They’re non-fungible, which means the tokens can’t be swapped for each other. Since a good marketer keeps pace with the advances in trends across the globe, one must not overlook NFTs either.

Consider NFTs this way: if bitcoin tokens are equivalent to blockchain-verified dollar bills, then NFTs are equivalent to blockchain-verified artworks.

Non-fungible tokens have been around since at least June 2017, when CryptoPunks, a collection of 10,000 unique digital characters, emerged on Ethereum. However, CryptoKitties, a virtual cat trading game that went popular later that year, was the first initiative to make NFTs generally known among the crypto community. People have spent $174 million on NFTs since then.

Non-fungible tokens are similar to the serial numbers that a luxury brand might provide to each of its products in order to authenticate their authenticity. There is no central authority issuing NFTs. Instead, the majority of NFTs currently in circulation are based on Ethereum. And each NFT is minted to represent a specific piece of digital asset and is confirmed by the network.

NFTs in Digital Marketing

Non-fungible tokens provide brands with fascinating new digital marketing opportunities. Because NFTs are still in their infancy, the possibilities for incorporating them into a brand’s digital marketing plan are limitless.

Offering meaningful experiences to followers and consumers that go beyond your brand’s products or services is a crucial part of any smart marketing strategy. This is exactly what NFTs provide.

They’ll assist you in building communities and developing relationships that lead to loyalty and support, as well as increasing client lifetime value. While they may not provide an immediate return on investment, they can help to support all of the other activities aimed at increasing conversions and sales.

Examples

Some companies have used NFTs as part of their digital marketing plan to buy an existing popular NFT that promotes their brand on social media in the hopes of becoming viral and reaching new audiences.

Some of the other brands which have invested in NFTs in the past year include Coca Cola, McDonald’s, Nike et cetera.

NFT
Image Source: Fortune

Other brands, such as Taco Bell, have directly incorporated NFTs into their approach. Taco Bell started selling a limited edition of taco-themed digital art NFTs. All of this helped them raise brand awareness while also helping a good cause.

NFT
Image Source: The Verge

How to incorporate NFTs in your strategy?

Naturally, one of the goals of NFTs is to boost conversions and income. As the brand enters the NFT area and offers these new experiences to the community, interest in the brand organically grows. The methods listed below can help you adapt NFTs in a seamless and successful manner.

1. Build Brand Awareness

Anything digital can be used as an NFT: a JPEG, a GIF, a 3D animation, a VR artwork, and so on. Your company is no longer limited to selling actual goods or services. Offer something unique while yet using your brand’s most authentic elements. Make sure you’re selling something that your users will find worthwhile not only to invest in but also to spread the word about. NFTs can become a part of your brand storytelling, bringing it to life through a real object that customers can possess and that embodies their brand experience.

This will result in an increase in both user-generated content and digital word-of-mouth on an organic basis. Make sure you build excitement around the launch of your brand’s NFTs.

2. Expand Audience Reach

Afraid that your brand does not appeal to the younger crowd or the Gen-Z’s anymore? What better way to accumulate their attention than by jumping on the NFTs-bandwagon.

Open the door to user-generated content, community proposals for the types of tokens they’d like to see and possess or utilise them as prizes in crowdfunding campaigns and contests to appeal to them.

This will allow you to create your own community, one that will be diverse in terms of age groups. It will also cater to practically all segments of society who choose to participate in your campaign and provide feedback. As a result, ensure that your campaign is user-friendly and simple to navigate.

3. Build your image by supporting social causes

Consumers today place a high priority on whether brands reflect their values. You can show your brand’s commitment to social causes by donating NFT earnings to organisations. Choose a cause that reflects your values and connects to what you have to offer. Don’t do anything that feels forced or out of the blue.

Alternatively, you might ask artists to design tokens for your company and reward them with both publicity and cash from their work.

Risks involving NFTs

 

Image Source: Business Insider

NFTs aren’t all rainbows and sunshine. NFTs are a risky yet lucrative investment. There are risks involved with incorporating these assets into a marketing campaign.

1. An NFT collection may not attract the community, exposure, or traction it needs to be successful, and hence will not yield a large return.

2. NFT’s success is primarily reliant on the community. Social media shares and word-of-mouth help to provide the necessary publicity and traction for a successful project. All of this is still plagued with high-volatility dangers.

3. A potential danger is having a target audience that does not overlap with the audience that follows NFTs. You may have visibility and a collectable item, but no KPIs to back up your marketing spend.

4. While there are efforts to make NFTs less energy-intensive, this is not the case right now. As a result, you may need to think about their environmental impact and look for solutions to offset some of the impacts. Also, given the high demand for tokens, new eco-friendly methods of producing tokens are likely to emerge shortly.

Summing up

Brands now have access to a whole new marketing area thanks to NFTs. This allows them to come up with new and innovative methods to engage with their fans, boost brand exposure, and generate new revenue streams. Keep an eye out for brands leveraging NFTs to draw inspiration from.

We advocate implementing NFTs into your marketing if your brand can afford the risk, has overlapping consumers, and wants to try new digital marketing methods.

Contact us at Shaktiki today to learn more about new opportunities in digital marketing.

Why should e-commerce websites accept cryptocurrency?

The year 2009 paved the way to something that has gained immense popularity in recent years. It’s a frequent topic of discussion and has created a lot of buzz.  This subject is what we call cryptocurrency.

What is cryptocurrency?

In simple words, a cryptocurrency is a form of digital payment based on complex encryption. It can be exchanged amongst its users for goods and services. In opposition to cash which has a fixed value, many investors consider this as an asset with a variable value.

A major point about cryptocurrencies is that they have decentralized control. This means, unlike traditional currencies, it’s not controlled by any centralized authority like banks and governments. Consequently, transactions are verified by a decentralized network of thousands of computers without a central server. Encryption techniques are used to control their use and manage their release.

Some popular cryptocurrencies include Bitcoin, Ethereum, Litecoin, and Ripple.

cryptocurrency

A pseudonymous (possibly) developer Satoshi Nakamoto created the first decentralized cryptocurrency in 2009. Since then, the currency has witnessed many fluctuations. However, it has gained admirable credibility now. The use of cryptocurrency in e-commerce is proof of the same.

Who is accepting cryptocurrency?

Many major companies across the world accept cryptocurrency. This includes PayPal. The financial technology company intended to draw businesses to its platforms. Additionally, bitcoin’s transaction fees were lower than the profit-making 2%-3% charge that businesses paid for credit card transactions.

The Online electronics giant NewEgg also accepts bitcoin. While many platforms require you to convert crypto to cash through a third-party service, NewEgg lets you pay instantly. Shoppers buying through a computer have to choose the “Pay With Bitcoin”. Following this, they have to go through the motions of shipping.

cryptocurrency

Additionally, Amazon-owned Whole Foods and Twitch now accept cryptocurrency, not just bitcoin. Moreover, this list of companies accepting this new currency includes big names like Starbucks, Microsoft, Etsy, Overstock, Home Depot; etc.

Why are E-commerce platforms introducing cryptocurrency payment options?

The digital revolution has severely impacted our lives. In the business domain, the rise of E-commerce has led to the rise of digital wallets. This is a more convenient and instant payment option. Considering Cyptocurrency is automatically converted into local currency merchants when using a payment processor, introducing this payment option can be seamless. However, still many E-commerce players are yet to adopt this form of payment.

It is imperative for E-Commerce retailers to understand how adopting cryptocurrency as a payment method can offer multiple benefits. Consequently, it can help to foster growth in your business.

Reasons to introduce this payment method

Here are some reasons to introduce cryptocurrency as a payment method in  your E-Commerce website:

Broader Market

Introducing cryptocurrency as a payment method will enhance the purchasing power of tech-savvy consumers who have a community within the cryptocurrency market. Consequently, it will help in expanding your market.

Moreover, a digital wallet allows you to dive into broader markets and attract customers from all around the world.

Rapid transactions

Traditional transaction systems like credit cards take a few days to process. Whereas the blockchain technology of cryptocurrency enables faster and more direct transactions. This will allow you to streamline your business cash flow.

On the other hand, the immediate processing of cryptocurrency is also beneficial for customers. It means their orders can be shipped instantaneously. This in turn enhances their shopping experience and satisfies a modern customer’s demand for faster delivery.

Lower fees

E-commerce sellers pay a significant charge for credit cards. The transaction fees for cryptocurrency will depend on whether you accept it through your personal waller or through a third-party provider. However, it will be less than services like Paypal or as mentioned earlier credit card providers. Hence, cryptocurrencies have lower transaction costs.

Consequently, this makes business more profitable.

Enhanced Security

Following a transaction carried with cryptocurrency, it becomes difficult to reverse without the approval of the merchant. Since there is no middle authority like a bank that can withdraw the funds from your account without your consent, retailers are assured of more security from E-Commerce fraud.

Carrying anonymous transactions

Cryptocurrency is like unmarked cash. It allows making anonymous purchases by using encrypted wallet addresses. Basically, this allows customers to make purchases while not comprising their personal information. Additionally, you can do your business without any concerns about privacy regulations.

How can you accept cryptocurrency payments on your e-commerce site?

There are two options you can use for introducing this mode of payment:

  1. Through third-party processors: There are many third-party services that can process transactions on your behalf. Some examples of these can be BitPay, Coinbase, or NOWpayments. A Shopify merchant can start accepting cryptocurrency by enabling one or more alternative payment methods from the ‘Payment Providers’ page of their Shopify admin. Once this option is enabled, they can accept more than 300 digital currencies.
  2. Paying through a personal wallet: Through this option, you can receive payments directly to your personal digital wallet. This can be stored on your smartphone, computer, or hard drive.

Summing Up

If you decide to add cryptocurrency as a method of payment in your online store, there are some things you need to keep in mind. Ensure the security of your system, transaction, and funds. In order to enhance security, use strong passwords and multi-factor authentication for your crypto exchanges and wallets. Additionally, regularly update, backup, and encrypt your systems and wallet.

One should keep these funds in cold storage if they are vital to their business. This means keeping an offline Bitcoin wallet like a flash drive. However, don’t keep large amounts in the wallet for a long period of time.

If this new concept seems confusing, remember that cryptocurrency has an immense possibility of transforming E-commerce and international trade. Most importantly, adopting cryptocurrency has benefits for both the customers and businesses. So, keep up with the latest practice in the e-Commerce industry and adopt cryptocurrency today.

To keep up with the best marketing practices, get in touch with our team at Shaktiki today.