In the last couple of years, many brands have used NFTs as new tools for marketing as well as assets that generate revenue. This article covers five ways SMBs use NFTs in order to build brand awareness.
What are NFTs?
NFTs are a unique type of crypto-asset that cannot be replaced with another token. NFTs can be created or minted through smart contracts that are recorded on the Ethereum blockchain. NFTs are a unique asset that can be used to represent the ownership of a variety of items, whether they are physical or virtual.
Each NFT has a unique ID and metadata to manage ownership, transferability and other aspects. These tokens, like all crypto assets including cryptocurrencies can be purchased and sold on major crypto exchanges, such as the listed here and in specialized NFT markets, such as OpenSea.
NFTs function similarly to cryptocurrencies, in that ownership and transactions are recorded and verified using a decentralized ledger. This is done through blockchain technology. There are two main differences between NFTs (and crypto):
- First, unlike cryptos, which can be traded and exchanged in fractions (you can purchase 0.0001 Bitcoin for example), NFTs cannot be divided, so each transaction can only involve a single NFT. It also means that an NFT is only owned by one person at a given time.
- Second, there are no two NFTs that are exactly the same. However, one crypto unit can be used for both. Non-fungibility is exactly what it means: You cannot replace one NFT by another, even if both of them have similar values.
This makes each NFT unique and collectible. Smart contracts are also used to create NFTs. These are rules that are written in code and govern token ownership and transfer. They can be used to add unique features that make NFTs useful outside of the virtual world. These contracts are stored in the blockchain and therefore, they cannot be changed.
What makes NFTs so special?
NFTs are unique because they have characteristics that allow them to represent assets in any form. These tokens are easy to use and secure. They can be used in almost any field. NFTs are also used to create digital asset which can be used for marketing campaigns or as a revenue source.
People are going crazy about NFTs. According to Reuters, NFT sales increased 10x in the third and fourth quarters of last year.
NFTs are hot because, besides the fact that NFT artists and influencers made a lot of money from their tokens in the past, they’re also transforming the Internet. The internet is undergoing a paradigm shift. Everyday internet users can now own part of the web, just like they own sneakers or their home.
As you will see in the following section, NFTs also transform business models.
Brands are utilizing NFTs to market their products
NFTs are used in marketing, and their applications are endless. NFTs are being used in marketing by brands for a variety of reasons.
- Extending the brand’s reach by diving into different markets such as the different metaverses.
- Manage and drive pre-orders through virtual tokenized versions of real products yet to be launched.
- Protecting the brand image through tracking and managing authenticity of products and helping customers to easily distinguish originals from cheap knockoffs.
- Promotional events in both person and online .
- Brand awareness can be achieved in many ways, as I will explain below.
These are just a few of the most prominent uses for NFTs. Brands are always coming up with ways to leverage these assets and ride the NFT-wave wherever it takes them.
Use NFTs for brand awareness
As I have mentioned, NFTs are used by brands to raise awareness. It is especially important for small businesses and startup companies that do not have the resources or reach of large corporations. Here are five ways you can increase awareness using NFTs.
1. Referral programs for NFT
Referral programs have been proven to be a great way to increase your audience. Referral programs are a great way to get your existing clients to promote your brand and act as ambassadors in exchange for compensation.
can improve the effectiveness of your referral program by using tokens. Token rewards are flexible and can be used to offer your customers unique discounts, perks and raffles.
In addition to being an exciting and new way to reward your customers, having branded NFTs also creates a community spirit that is not possible with cash prizes. It also promotes brand loyalty.
2. Use NFTs to access and admission tokens at your brand’s events.
Tokenizing events can be a great way to use NFTs for marketing and at the same provide a potential secondary revenue source. Let’s take a look at an actual use case to see how it works.
Gary Vee, a Belarusian-American influencer and entrepreneur, uses NFTs as a way to promote his brand. He sells a collection that can be used both as an access token and an admission token. The access tokens offer the owner different levels to interact with Vee, while the entrance tokens let the owner attend Vee’s events and workshops.
The fact that the images are part a collectible collection makes them desirable. Those who bought them initially can sell them at a profit.
3. Create branded digital collections with NFT artists.
In many ways, this is similar to influencer marketing. Working with a well-known NFT artist to create a limited edition set of your brand’s NFTs can help you gain a lot more exposure for your business. Some NFT creators are so famous that their work becomes viral by itself.
RTFKT and NFT artist FEWOCiOUS partnered to create a virtual branded shoe as an NFT which sold for $3,000,000. The RTFKT (r) was brought to the forefront of millions’ minds.
4. Giveaways and contests for NFT.
Free stuff is always appreciated, but even more so when it’s worth millions of dollars. contests and giveaways always draw a crowd. They are excellent tools for building brand recognition. If you want to create even more buzz with your contest or giveaway than usual, consider giving out NFTs.
Consider that many major brands around the world are already doing this. Marriott Bonvoy (r), for example, minted 3 travel-related NFTs to be raffled off during the Art Basel Modern Art Show.
The prize included not only the NFT but also a significant number of points from the Marriott loyalty program, which can be redeemed for merchandise, hotel stays, travel, and other experiences. It shows that you can combine NFTs with your regular contest prizes to increase brand awareness.
5. Use NFTs as souvenirs or merchandise at events.
You can use NFTs to promote your brand by holding an important event. You can mint any souvenirs as NFTs and sell them to attendees.
You can use this for both in-person and online events, such as Webinars or online workshops. And you can give NFTs to those who stay to the end.
The conclusion of the article is:
Brands can increase brand awareness by using non-fungible tokens. NFTs can be used in many ways, including as rewards for your referral programs or to give them away at events and contests. You can also work with an artist, company or designer who specializes in branding collections. Or you can create your own non fungible tokens in various ways. Start minting your tokens now if you haven’t already.
