20 January 2022 |
Media and Advertising Industry
2021 was the year of the NFT. While the technology has existed for a decade, last year saw NFTs explode into the mainstream. An estimated $41bn was spent on NFTs last year, and with brands of all sizes leveraging the technology, it’s clear they represent an opportunity for advertisers to make their mark. But what are NFTs? And what do they mean for the future of digital marketing?
What are they?
An NFT, or ‘Non-Fungible Token’, is a digital collector’s item represented by an image or video. What sets NFTs apart from a typical JPEG or MP4 file is their element of exclusivity. Ownership of the file is secured by a unique certificate registered on a blockchain – an immutable digital ledger of transactions. Typically, ownership is accompanied by a range of rights only available to the NFT owner.
What do they mean for brands?
While still in their infancy, NFTs are predicted to play a significant role in the digital landscape in the coming years. For marketers, they represent an opportunity to increase brand awareness and create unique and memorable experiences for customers. This is particularly true as we begin to embrace the emerging metaverse.
Early examples of brands leveraging the NFT include McDonald’s, who last year created a series of NFTs to promote the return of their McRib sandwich. Closer to home, fledgling Australian beauty brand Sunny Skin launched a collection of NFTs to generate awareness and strengthen customer relationships and brand loyalty. For both brands launching NFTs not only generated buzz but also encouraged consumers to begin – or continue – a long-term consumer relationship.
These examples are just the tip of the iceberg of what brands can achieve with NFTs. While only time will tell whether the mainstream will continue to embrace the technology, it’s clear that it poses innovative ways for brands to move forward further into the digital landscape and forge future-proof relationships with their customers.
Reach out to your ADMATICian to find out more about leveraging new technologies to increase brand awareness.Next Article