In 2022, savvy brands will leverage non-fungible tokens (NFTs) to boost revenue and enhance visibility. Collectively, NFTs signify limitless potential for growth via the cryptocurrency blockchain. They are fresh, exciting, and rapidly attracting mainstream investment in an elastic, accessible market.
Companies harness this moment to attract a growing audience to their product lines and find new relevance in the metaverse. Established brands like Paramount burnish their image with marketing campaigns that package exclusive merchandise for strategic release on their platforms. Prada and Adidas have partnered with digital artiste-du-jour Zach Lieberman to create a large-scale collaborative work that can be purchased in parts on the OpenSea website. Then there are projects like Bored Ape Yacht Club: a set of 10,000 limited edition Ethereum-based profile pictures that appeal to celebrities, including Jimmy Fallon, Mark Cuban, and Paris Hilton.
Brands of any size can fashion their core offerings into a digital asset, then bind it to a token of ownership to create a unique collectible NFT. Since these one-of-a-kind objects are rare, they gain value as their status and notoriety rise. Positive buzz drives sales by enticing consumers to acquire a particular NFT outright or purchase affiliated goods. Fans may also contribute to the digital asset or share representations of the NFT on social media to become part of its in-crowd, or “community.”
Authentic NFTs must meet a basic set of criteria, but new features are being integrated as the technology evolves. The diversity of characteristics means there’s an NFT for everyone. Brands should practice due diligence before diving into volatile waters and recognize that getting the proper attention is key to success. Companies should look for a well-regarded wallet, platform, and feature set that complements their brand identity and budget, then deftly time their drop as they publicize the release. Media channels like TikTok, Instagram, and Twitter can reach a sophisticated audience that expects brands to contribute to the culture (and not simply exploit a trend). Companies that master the complexities of their launch will maximize ROI now and be ready to consider future long-term investments if their plan takes off. Oddly, NFTs are here to stay, and it’s a great time to join the party.