Metaverse & NFT are catching the imagination of people around the world. While the early adopters are making inroads into this lesser-known territory, it is largely an unexplored landscape with uncertainty & scepticism. However, as consumers become more involved with the digital environment, which the future promises to hold, the brand owners & marketing team don’t want to be left behind, while their competition could rake in all the visibility they get as the first mover.
What Is NFT?
NFT (Non-Fungible Token) are non-interchangeable units of data that enable people or brands to tokenize digital files such as art, videos, audio & collectibles. NFT establishes ownership to an entity or a person at any point of time and is secured by the Ethereum blockchain.
Why is NFT valuable?
As NFTs are minted (converting digital data into crypto collections or digital assets recorded on the blockchain) from JPEG, PNG, or GIF image formats, one may wonder how it will make a difference as they could take a screenshot of the NFT to store in their mobile or computer. This is the same as walking into a gallery or museum to taking amazing digital pictures of works of art & claiming the value of the original. While there could be many ‘copies’, there will be only one owner with NFT who rightfully owns the asset. The NFT is like a ‘bill of copy’ within the blockchain which verifies who bought it, when and, if they later sold it, to whom.
The buzz of NFT in marketing began with the auctioning off of the first digital-only NFT at Christie’s that sold for US $69.3 million. This led to brands experimenting with NFT, to be part of their marketing mix.
Some brands are releasing NFT collectibles on limited editions as a way to open up new revenue streams or raise money for a good cause, while others are using them as a way to boost their image, tell a story or reach a new audience. With little data on acceptance or demand, the most common route taken by marketers had been auctioning their brand’s NFTs.
Click to Learn More : How Big Brands are taking Marketing initiatives in the NFT world
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