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.

How will Web 3.0 impact digital marketing?

The internet of the future is Web 3.0. Since its inception in 1994, the internet has gone through a number of stages of change. When it comes to marketing, three waves of technological innovation have occurred: Web 1.0, Web 2.0, and now Web 3.0.

Evolution of Web 3.0

Web 1.0 (1989-2005) was a static information provider in which users viewed web pages but rarely interacted with them. Web 2.0 (2005-present), on the other hand, is a social and interactive web that allows users to collaborate. As a result, Web 3.0 might, probably, alter the process of creation of websites as well as how users interact with them.

Web 3.0 will be the next step in the evolution of web businesses, building on Web 2.0’s interactive and socially connected websites as well as Web 1.0’s informational sites.

Web 3.0 is an improved version of Web 2.0 that is defined by the creation of a virtual world on the Internet via websites such as online virtual shopping malls that allow users to communicate with one another and buy things.

This could imply a space where people work on decentralised, almost anonymous platforms. That, in turn, means turning away from the hands of tech behemoths such as Google, Facebook, and Twitter.

What is Web 3.0 Marketing?

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Web 3.0 Marketing is a concept that looks at trends and new technologies to explore the web. Websites and search engine optimisation aren’t the only aspects of Web 3.0 marketing.

In this marketing environment, customised and intelligent information will be available at our fingertips, on any device, from anywhere in the world.

Factors impacting Web 3.0 marketing include – browsing behaviours, browsing ways, more intelligent information, the experience we seek, and the openness of the Internet.

Key Features of Web 3.0 Marketing

Semantic Web

Web 3.0 is going to offer the Semantic Web. According to Tim Berners-Lee, “The Semantic Web is not a separate Web but an extension of the current one, in which information is given well-defined meaning, better-enabling computers and people to work in cooperation”.

It establishes a framework for information reuse and sharing among programmes, communities, and businesses. As a result, computers and humans will be able to converse more effectively.

Artificial Intelligence

Artificial intelligenceNatural language processing (NLP) is an artificial intelligence area that aids computers in comprehending, interpreting, and manipulating human language. NLP technology allows computers to think more like humans and better understand the data at hand. Thus, resulting in more accurate and timely answers and responses.

Ubiquitous

Web 3.0 is ubiquitous. That is, it is accessible to anybody, on any device, and in any application. The Internet of Things (IoT), which enables the omnipresent online, is increasing the number of gadgets connected to the Internet every day.

Decentralisation

The cornerstone of Web 3.0 is decentralisation. Instead of being stored in a single location, information in Web 3.0 would be stored in multiple locations at the same time. As a result, there would be no data storage centre. There would be no colossal databases controlled by a single authority in this fashion.

This would also eliminate intermediates, reduce the danger of server failure, and eliminate the need for external authorization.

3-Dimensional

In the future, people will be more interested in 3D design since it can help them grasp things better than two dimensions.

Furthermore, as it evolves, more and more apps, such as virtual reality (VR), augmented reality (AR), and 3D product visualisation, employ three-dimensional design.

This is something we’re already seeing in action. Facebook is putting time, effort, and money into the Metaverse, an Oculus-supported Virtual Reality environment.

Role of Blockchain Technology

Blockchain technology will play a key role in the advancement of Web 3.0.

blockchain

To begin with, Blockchain is a rapidly evolving technology that is changing the way we live. It’s all about removing centralised processes and establishing an open environment that will revolutionise the digital marketing sector.

Blockchain technology will provide data security and decentralisation for Web 3.0. Businesses can directly connect to the clients. Customers would also have control over their data privacy. Thanks to blockchain technology ensuring data openness and security.

As a result, it’s safe to conclude that blockchain would be assisting in making it more efficient and transparent.

How to prepare your business for Web 3.0 Marketing?

Web 3.0 is the next step in the evolution of the internet, with seamless interfaces and communication channels connecting website content and users. With this connectivity, businesses can provide a more personalised experience that can be accessed on any device or screen size and enables real-time data sharing.

Because of their decentralised structure, businesses would be very user-centric and transparent. To maintain data openness and open access, they would have to implement blockchain technologies. Resultantly, users would be able to take control of their data and privacy.

Businesses will have to make informed judgments, keeping in mind that the future is nowhere and will continue to refresh. For instance, try curating 3D models or virtual reality storefronts if you have a retail e-commerce firm.

Content Marketing

With enhanced decentralisation, Web 3.0 returns the financial reward of creativity to the hands of creatives. Now, given you’re a marketer, content marketing is undoubtedly one of your most widely used techniques.

NFTs (non-fungible tokens) are a sort of cryptographic token that represents a singular digital asset. Now that NFTs have taken over the scene, it’s critical not to lose out on the opportunity to join the NFT community.

Consider it a new approach to communicate with your consumers and communities.

Social Media

Social media marketing will undergo significant changes as a result of Web 3.0. Decentralised apps, or dApps, for example, would exist, with no centralised authority over users’ data due to the decentralised nature. Users would pull the reins.

Conclusion

Control and power accumulated within centralised organisations have far-reaching and long-lasting consequences. Be it a bank or social media platform, trust was lost. All of this fueled people’s yearning for decentralisation.

The advancement of AI and blockchain technologies lubricated Web 3.0’s gears.

Given that NFTs and Virtual Reality are only the first items of Web 3.0, it’s safe to conclude that we’re in for a shower of marketing breakthroughs.