NFTs are arguably one of the biggest buzzwords of 2021 and have become trending topics on many social media platforms. To get you up to speed, we created a guide to help you understand NFTs.
As a new avenue of offering value to consumers and an essential part of the multiverse, many brands have started to develop their own NFT offerings. Most recently, Nike announced the acquisition of RTFKT, a virtual shoe company that makes NFTs and sneakers for the multiverse.
However, most other brands are now joining the NFT race for press attention, rather than taking meaningful steps into developing a substantial digital asset operation. This is because, in part, marketing digital assets present a complex marketing challenge, requiring brands to balance speaking to a wider audience than their base customers and use new systems in their marketing. Because of this delicate situation, there will be a lot of growing pains and missteps along the way.
This article will present considerations for marketing NFTs to help brands maximise their efforts.
Reaching the Traditional Consumer
While currently being a hot topic online, most people still do not have a solid understanding of what NFTs are and how they work. As such, when brands debut their new NFT offerings, they are largely bought up by people already within the crypto space.
Fortunately, there is room for growth: One in four UK adults intend to buy a digital asset within the next 12 months, according to CyberCrew.
With that, brands should aim to consistently market both their physical and digital offerings to consumers. The marketing needs to feel authentic to both the traditional audiences and the crypto audiences. This is how:
Educate: Brands need to educate their prospective customers on the benefits of the digital assets and show them how to purchase the digital items. Create content across the social media platforms to teach prospects how to create an account, log onto the NFT platform and process the payment transaction. Be clear on the end benefit.
Innovate: In the information age, brands have access to massive amounts of user data at their disposal. They can use data from their physical products to inform their new product development process, using it to select what products to offer digitally and which audience segments to target.
Incentives: Brands looking to expand their audiences and further connect with their customers can utilise incentives such as loyalty programs and reward schemes. Pairing a digital asset with a physical one would likely increase purchase intent.
Reaching the Crypto Crowd
These tech-savvy, early-adopter, and well-educated group is notorious for being averse to traditional advertising methods. To reach them, one needs a thorough understanding of the crypto industry, past and present. You need to understand their nuances to win.
They are tech-savvy: As the innovators and early adopters, they have a high level of tech awareness, have a strong connection to scientific principles, value new possibilities, and rely on peers for thought leadership.
As such, they are more likely to be on different platforms than their more-traditional counterparts. Brands will be to create promotional content on Twitter, Discord, Reddit, and more Telegram channels to reach this group.
They demand Value: Faced with their experience with scammers, failed initial coin offerings (ICOs), and the volatility of digital assets; this audience is understandable sceptical of new crypto projects.
To win over this audience, brands will need to show that their digital assets solve real-world problems and have the substantial value that would justify the purchase.
Closing
As the next evolution in the marketing mix, NFTs will be vital for brands in the near future. Brands need to establish real, long-term, multi-step strategies to successfully roll out their new digital assets.
For more on NFT marketing and the metaverse, stick around on the blog or reach out personally for individual consultation.
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