There are many ways to market your brand, but none are quite as bold as the NFT craze. NFTs, or Non-Fungible Tokens, are the latest innovation in cryptocurrency that have taken the digital world by storm and are now making their way into the physical world. Apart from hosting an NFT art gallery, NFTs represent an opportunity for brands to build new relationships with their customers and create more valuable experiences. In a recent webinar “NFTs for Brands” by NDN Group, our founder and CEO Andy Ann shared his expertise in NFT marketing and demonstrated how NFTs could be applied to brands. Considering these 6 things before you start marketing your brand with an NFT marketing agency will be crucial to the success of your game.
The Beauty of NFTs from Digital Art to Digital Transformation
With the invention of blockchain technology and the rise of cryptocurrencies, Non-Fungible Tokens (NFTs) have taken the market by storm. In just one year, the NFT market has increased 16,000% from $250 million to nearly $41 billion, and NFTs continue to grow in popularity.
Essentially a digital certificate of authenticity for unique items, such as artworks and collectibles, NFTs can be used to transfer ownership or prove an item is genuine. And because they’re created using blockchain technology, they can’t be replicated or duplicated. NFTs offer proof of ownership in a digital space that has long been plagued by piracy. They also offer an opportunity for collectors who want a unique piece of art or an exclusive song from their favorite artist.
However, the capabilities of NFT have gone beyond monetizing digital art collectibles and creating authenticity to accelerate mainstream product development, leading to digital transformation and value creation for companies. New business models such as play-to-earn and experience-to-earn have also arisen to encourage various purchasing behaviors and engagement experiences.
7 Things Brands Do to Engage Customers with NFTs?
NFTs are a unique way for your brand to offer experiences or assets that are both digital and physical, and they’re a great way to stand out from other companies as your audience discovers something new. You can use NFTs to build brand loyalty, boost customer engagement, create collectibles, or even sell products or services. Here are some of the possibilities:
1. Digital marketing – Let customers buy your brand assets to engage in blockchain-based marketing campaigns.
2. Brand loyalty – Use NFTs to reward your most loyal customers for purchasing your products or services.
3. Collectibles – You can sell collectible NFTs to the existing fan base.
4. Games – If you’re a game developer, you may want to consider building your game around NFT items that players can collect or trade.
5. NFT art galleries – Team up with local artists and conduct NFT art galleries to promote your brand and support causes.
Charity / fundraising – Non-profit organizations could use NFTs as rewards for donating to their causes.
6. Event ticketing – Festivals and conferences could sell tickets by issuing NFTs.
7. Community empowerment – As a brand owner, you can offer your NFT holders membership, voting rights or the chance to take part in brand activities.
6 things to consider before brands market the NFT collection
If you’re thinking about jumping into this new business venture and creating your own NFTs for your brand, keep these points in mind:
1. Retail Mass Customers vs. Crypto Speculators
There are four kinds of buyers in the NFT world: crypto speculators, collectors, art fans, and mass retail customers. As brands, you will have to choose which groups you’re going to target, and tailor your offerings accordingly.
In general, in order to build brand value, you may consider avoiding crypto speculators. Their investment horizon is considerably short-term and they have no loyalty to brands beyond their willingness to pay top dollar for something they can re-sell quickly at a higher price. They will buy an NFT because they think it will appreciate in value due to demand from other speculators. They may also be buying an NFT for re-selling it to another collector at a higher price. Therefore, your NFT marketing strategy efforts should primarily focus on collectors and art enthusiasts as they’re more likely to engage with your brand long-term and spread the word.
2. Crypto Volatility
The crypto market’s wild price swings have come under increasing scrutiny. Bitcoin hit a high of $41,000 in January 2022, which was a rapid recovery after falling to less than $37,000 overnight. Such volatility has raised concerns that crypto could destabilize global banks and major corporations.
If you’re marketing your brand with an NFT marketing agency, you need to be aware that their value is also volatile, depending on the market at any given time. This makes it difficult to make long-term financial plans.
3. Crypto Exchange and Wallet Setup for your Customers
Before you start marketing your brand with NFTs, you need to consider the crypto wallet and exchange for your customers to store your NFTs. As mainstream adoption of crypto continues to grow, more people will be looking for a way to safely store their assets.
Crypto wallets are where users store their digital coins and tokens. Crypto exchanges are websites where users can buy, sell or trade cryptocurrencies. These options can be confusing for beginners because there are so many different types of wallets and exchanges to choose from.
Also, the process of buying cryptocurrency can be complicated for some users. You’ll want to make it easy for your customers with good UX and UI designs to buy crypto tokens from you, including through an easy setup process on your website. Assume that a lot of your customers will need to set up accounts and may need assistance if they run into any problems.
If you’re selling your NFTs on a marketplace like OpenSea or Rarible, there are built-in options for taking payment in cryptocurrency, so this is already taken care of. If you’re selling directly on your own website, you may want to use a service like NOIZ Beam Wallet, an all-in-one platform to trade, track and experience NFT with crypto or just their credit cards.
4. Regulatory Concerns
Currently, there is no specific legislation to restrict cryptocurrencies in Hong Kong. Given that crypto prices are volatile, institutions such as the government and banks may have regulatory concerns about exploring this new financial frontier.
Nevertheless, HSBC has become the first major bank in Hong Kong to launch an NFT project by partnering with K11 Musea for an NFT art gallery and giveaway of 1,000 NFTs to its customers using NFT service providers Articoin and NOIZ. This partnership means that as soon as other banks notice the success of this NFT project, they will begin embracing NFT technology and getting a slice of the NFT market.
Before diving into this new digital space, brands thinking of investing in such a new business venture should consider the risks involved—including the possibility of harming their brand image due to crypto volatility and speculations.
The best NFT marketing strategy for brands interested in NFTs is to follow the same basic principles as any other marketing campaign: know your target audience and what they want from you, and make sure your product or service meets those expectations.
6. ESG and Sustainability Concerns
When your brands use NFTs to create scarcity around their offerings, you should consider maintaining your sustainability initiatives as well. Bitcoin mining has a massive carbon footprint, posing serious environmental concerns for the companies involved. It is also said that the mining of 13 ETH can cost 1 ton of CO2. Listed companies or global brands that concern ESG need to take into consideration the environmental impacts into your NFT marketing strategy and look for green blockchain solutions as consumers are becoming more sensitive about ESG (Environment, Social, Governance).
One-stop Service for NFT and Metaverse marketing strategies
As the world gears towards Web3—a decentralized, secure future internet where people are their own bank and can control their online identity and data—global brands are getting big on NFTs and the Metaverse. The innovations represent exciting opportunities for engaging younger customers and revenue opportunities.
Backed by AI, blockchain, and digital marketing technologies, New Digital Noise is a one-stop Metaverse and NFT marketing agency and service provider to help you design, mint, launch and promote Metaverse and NFT projects. We’ve got you covered, from integrated Web3 marketing and branding strategies, NFT design and creation to Metaverse immersive experience and Web3 community building!
Expertise and Proprietary Technologies by NDN Group
Developing Metaverse and NFT projects can be challenging without full-stack technologies. New Digital Noise’s parent company, NDN Group brings to the table a wide range of green blockchain, AI, VR and AR technologies. Contact us and let us help you with your Metaverse or NFT projects.
✔️ Sustainable and ESG-friendly
Never worry about your carbon footprint while creating NFTs on the blockchain. We offer a proprietary green blockchain technology that allows you to create NFTs with carbon credits for CO2 offsetting.
✔️ Accessible through cryptos and credit cards
We make NFTs more friendly and accessible for your customers by accepting both cryptos and credit cards as payment methods, making your Metaverse and NFT projects an easy success by targeting mass retail customers.
Book a Free Strategy Session with Us
Wondering how you can incorporate Metaverse and NFT marketing into your business plan? Just a 30-minute session with us and you’ll pick our brain for an introduction, best practices and our existing case studies of Metaverse and NFT projects.
Q1. What are the four types of NFT buyers?
A1. There are four kinds of buyers in the NFT world: crypto speculators, collectors, art fans, and mass retail customers. As brands, your NFT marketing strategy efforts should primarily focus on collectors and art enthusiasts as they’re more likely to engage with your brand long-term and spread the word.
Q2. What is the environmental impact of NFTs?
It is said that the mining of 13 ETH can cost 1 ton of CO2. Listed companies or global brands that concern ESG need to consider the environmental impacts in your NFT marketing strategy and look for NFT service providers with green blockchain solutions.