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Marketing tips for NFTs: Exploring the unique challenges and benefits

by | Jun 8, 2022 | Public Relations

Nearly 50 percent of companies have started leveraging non-fungible tokens in their marketing efforts. In the last year, discussions about non-fungible tokens and the next iteration of the Web have started to become a lot more popular, which made many companies become more interested in those topics. A non-fungible token or an NFT is a digital collectible asset that has a unique signature living on the blockchain, and it can be anything from a piece of music to artwork, collectible, or even a piece of video content. The value it holds is speculative and determined by a community, and the token can be exchanged or sold without the owner fearing that their token will be illegally duplicated or lose its value in that manner.

The way that these token works are by creating them, or “minting” them to represent some sort of tangible item such as a piece of clothing or an artwork, or even a non-tangible item such as a video, or image, or song. For example, the founder of Twitter, Jack Dorsey, managed to sell his first tweet, valued at nearly $3 million last year, as a non-fungible token. The value of the item in question is determined by the community of other token holders or members that are interested in purchasing a token.

The thing that makes these digital collectibles so popular with many people is that they represent the decentralization of power from the few to the many

This is incredibly valuable to creators, in particular, who mostly used to rely on various third-party platforms, such as YouTube, Spotify, or Instagram, where they could share their content, and generate some form of income. However, with NFTs, the Internet has put this power in the hands of the creators and their communities simply by letting them decide which tokens are popular and encouraging them to support the things they enjoy and like.

Investment

It’s not always easy for brands to get into new markets or trends, which makes these digital collectible assets a bit difficult for brands to get into, especially since they’re quite risky to invest in. Additionally, it’s not clear yet what the future will bring, and it’s still too early for anyone to judge the impact of NFTs on a larger scale. What is known, however, is that plenty of people that have joined this trend or market have generated a lot of success for themselves.

In fact, nearly 40 percent of the people that use these tokens have stated that they’ve had the best return on their investment out of any other communication channel they’ve previously used. With the help of these digital tokens, companies get incentives for their customers that are a lot more trackable compared to the ones you’re currently using, which makes acquiring customers, and the costs associated with that, quite different.

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Mike Paffmann
Mike Paffmann is CEO of Virgo-PR.

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