Unless you’ve been living under a rock, you’ve definitely come across the term ‘NFT’ during your social media scrolling. Non-fungible tokens have gained mass popularity in a very short amount of time.
Whilst some people are making their fortunes from creating and selling NFT’s, a lot of us are still trying to wrap our heads around what they really are, that includes us marketers, too.
There’s no shame in the learning game! Who really has the time to do hours of research into something as strange as owning a digital asset? In a time of Shift, Command + 3, how can we own the rights to a .jpg, video or audio file when they can so easily be copied, saved or duplicated?
Don’t worry, we’ve done all the research for you and will break down what NFT’S are, why they gained popularity so fast, how they are being ‘minted’, what they could be used for and of course, what the rise of NFT marketing.
So what are NFT’s?
An NFT, or non-fungible token, is an object that can be owned online. Each token represents a unique digital profile recorded on the blockchain digital ledger. This means that every single NFT that is created is completely unique, giving it real-world value. The emerging technology that is NFT’s has revived talks of developing a new media ownership model that puts creators first, giving us all a way to have clear ownership over digital items.
How, you ask? Well, as it’s a non-interchangeable unit of data stored on a blockchain, an NFT becomes a form of digital ledger that can be sold and traded. Types of NFT data units may be associated with digital files such as photos, videos, and audio.
A few years ago the concept of non-fungible tokens was just an idea that few had heard of – but with blockchain-powered smart contracts, a new model of media ownership is now possible, allowing creators to directly profit from digital assets. This means that even if an NFT is screenshotted, saved or distributed, the original creation, or the metadata, belongs to the creator or the person who has the rights to ownership. Wild, right?
How did NFT’s become so popular?
Once you get your head around what an NFT really is, the rise in popularity can be easily understood. The creators of our world have always drawn the short straw when it comes to recognition and payment for their work and with the birth of the internet and digital forms of art, the concept has never been more true.
NFTs have generated a whole community around them that is strongly centered around mutual respect, authenticity, and support for artists. They are a fantastic new way to hand power back to creators, letting them have rights or sell digital assets as they see fit.
However, it’s important to remember that the idea of “ownership” is simply a social construct that only works when everyone involved all agrees to it, but with NFT’s blowing up across the internet, it’s clear that just like the fantastical world of crypto and the metaverse, NFT’s are here to stay.
How are NFT’s created, sold and what proof do you get of ownership?
Although the NFT’s creator has the digital rights to the NFT, they may not have rights to the original creation. For example, if an NFT was created based on a painting, the NFT owner would not own the rights to the painting unless specifically stated in the contract.
The way an NFT is created and sold is called “minting”, but what does that involve? There are essentially three parties involved in minting and trading NFT rights including the creator of the original work, the creator of the NFT and the NFT buyer.
An NFT itself is a digital certificate of ownership. The buyer of an NFT only acquires ownership of the NFT itself and the rights to store it, sell it and dispose of it. However, the buyer does not necessarily own the intellectual property rights of the original work on which the NFT is based, just the metadata.
Will NFT’s keep their value?
The NFT market delivered $5 billion in January of 2022 and the market doesn’t seem to be slowing down any time soon. Just like any investment, the value of an NFT is determined simply by what the market will bear. Just remember that when you purchase an NFT you’re basically betting that someone will eventually be willing to buy it from you for more than what you paid. It is quite possible an NFT that is purchased for hundreds or thousands will exponentially appreciate in price as time progresses, but like all investments, enter at your own risk.
What will NFT’s be used for?
Since NFT’s became huge online, people have already come up with multiple uses for them to help us in the real world. From smart contracts within real estate, to easily verifying academic credentials and cross-platform playability within the gaming industry, they’re proven to be a huge benefit in a range of industries already and there are big plans for NFT’s going forward.
This fascinating new technology means that non-fungible tokens present a range of solutions across different industries, solidifying the idea that the market will continue growing and they will not only hold value, but become more valuable over time.
A major problem across the globe is the production and selling of fake supplements and medicines. NFT’s can help solve this by tracking and tracing products. As NFT’s permanently store information about any product using blockchain technology, they can be used to ensure an item’s authenticity. NFT’s can also be used to store information about the manufacturing process of products, ensuring that everything is fair trade.
What does the rise of NFT’s mean for digital marketing?
Non-fungible tokens open up exciting new doors for brands and brand marketers. Although you may not see an immediate ROI, the use of NFT’s could be very beneficial as part of a wider marketing strategy for your business. Here are some of the main ways we believe NFT’s will contribute to the digital marketing world:
Generating interest in your products or services
As a marketeer or a savvy business owner, you’ll look to the huge new market of NFT’s to help increase conversions and drive revenue. By incorporating NFT’s into your marketing strategy, you’ll be able to generate more interest in your brand, products and services by showing your business to be at the forefront of the latest technology and trends.
Creating unique brand experiences
If you incorporate NFT’s into your social media marketing strategy, you can solidify your brand’s story. You can offer something unique and tangible to your customer base that not only represents their experience with your brand, but gives you even more exposure.
Building your brand’s identity
Consider inviting artists to create tokens for your brand and support them with the exposure and the revenue generated by their creations. Not only will your brand be exposed to new audiences, you’ll be able to give back to your customers in a way they will really value and you’ll be helping creators too. Win, win, win!
Increasing brand awareness
As stated above, by offering your customers unique, branded NFT’s, a whole new level of personalisation becomes possible, increasing your brand awareness online and in the real world and solidifying customer loyalty.
Building online communities
You could run online competitions that offer NFT’s as prizes to your online community. If done correctly, you can gain a lot of new followers and get your business seen by thousands of new people. You could also try your hand in user-generated content, welcoming suggestions from your followers about the type of NFT’s they would like to own.
Supporting social causes
In our modern world people care deeply about whether brands represent their values. One way your business could demonstrate your brand’s dedication to social causes is by using NFT revenue to support charities that give back in some way. Make sure to pick a cause that is close to your own heart, authenticity is key for building strong relationships with your brand’s followers.
Stay in touch
How will you incorporate NFT marketing into your business strategy? If you found this article interesting and want to stay in the loop with all the latest trends, follow us on socials @circulatedigital.
Unless you’ve been living under a rock, you’ve definitely come across the term ‘NFT’ during your social media scrolling. Non-fungible tokens have gained mass popularity in a very short amount of time.
Whilst some people are making their fortunes from creating and selling NFT’s, a lot of us are still trying to wrap our heads around what they really are, that includes us marketers, too.
There’s no shame in the learning game! Who really has the time to do hours of research into something as strange as owning a digital asset? In a time of Shift, Command + 3, how can we own the rights to a .jpg, video or audio file when they can so easily be copied, saved or duplicated?
Don’t worry, we’ve done all the research for you and will break down what NFT’S are, why they gained popularity so fast, how they are being ‘minted’, what they could be used for and of course, what the rise of NFT marketing.
So what are NFT’s?
An NFT, or non-fungible token, is an object that can be owned online. Each token represents a unique digital profile recorded on the blockchain digital ledger. This means that every single NFT that is created is completely unique, giving it real-world value. The emerging technology that is NFT’s has revived talks of developing a new media ownership model that puts creators first, giving us all a way to have clear ownership over digital items.
How, you ask? Well, as it’s a non-interchangeable unit of data stored on a blockchain, an NFT becomes a form of digital ledger that can be sold and traded. Types of NFT data units may be associated with digital files such as photos, videos, and audio.
A few years ago the concept of non-fungible tokens was just an idea that few had heard of – but with blockchain-powered smart contracts, a new model of media ownership is now possible, allowing creators to directly profit from digital assets. This means that even if an NFT is screenshotted, saved or distributed, the original creation, or the metadata, belongs to the creator or the person who has the rights to ownership. Wild, right?
How did NFT’s become so popular?
Once you get your head around what an NFT really is, the rise in popularity can be easily understood. The creators of our world have always drawn the short straw when it comes to recognition and payment for their work and with the birth of the internet and digital forms of art, the concept has never been more true.
NFTs have generated a whole community around them that is strongly centered around mutual respect, authenticity, and support for artists. They are a fantastic new way to hand power back to creators, letting them have rights or sell digital assets as they see fit.
However, it’s important to remember that the idea of “ownership” is simply a social construct that only works when everyone involved all agrees to it, but with NFT’s blowing up across the internet, it’s clear that just like the fantastical world of crypto and the metaverse, NFT’s are here to stay.
How are NFT’s created, sold and what proof do you get of ownership?
Although the NFT’s creator has the digital rights to the NFT, they may not have rights to the original creation. For example, if an NFT was created based on a painting, the NFT owner would not own the rights to the painting unless specifically stated in the contract.
The way an NFT is created and sold is called “minting”, but what does that involve? There are essentially three parties involved in minting and trading NFT rights including the creator of the original work, the creator of the NFT and the NFT buyer.
An NFT itself is a digital certificate of ownership. The buyer of an NFT only acquires ownership of the NFT itself and the rights to store it, sell it and dispose of it. However, the buyer does not necessarily own the intellectual property rights of the original work on which the NFT is based, just the metadata.
Will NFT’s keep their value?
The NFT market delivered $5 billion in January of 2022 and the market doesn’t seem to be slowing down any time soon. Just like any investment, the value of an NFT is determined simply by what the market will bear. Just remember that when you purchase an NFT you’re basically betting that someone will eventually be willing to buy it from you for more than what you paid. It is quite possible an NFT that is purchased for hundreds or thousands will exponentially appreciate in price as time progresses, but like all investments, enter at your own risk.
What will NFT’s be used for?
Since NFT’s became huge online, people have already come up with multiple uses for them to help us in the real world. From smart contracts within real estate, to easily verifying academic credentials and cross-platform playability within the gaming industry, they’re proven to be a huge benefit in a range of industries already and there are big plans for NFT’s going forward.
This fascinating new technology means that non-fungible tokens present a range of solutions across different industries, solidifying the idea that the market will continue growing and they will not only hold value, but become more valuable over time.
A major problem across the globe is the production and selling of fake supplements and medicines. NFT’s can help solve this by tracking and tracing products. As NFT’s permanently store information about any product using blockchain technology, they can be used to ensure an item’s authenticity. NFT’s can also be used to store information about the manufacturing process of products, ensuring that everything is fair trade.
What does the rise of NFT’s mean for digital marketing?
Non-fungible tokens open up exciting new doors for brands and brand marketers. Although you may not see an immediate ROI, the use of NFT’s could be very beneficial as part of a wider marketing strategy for your business. Here are some of the main ways we believe NFT’s will contribute to the digital marketing world:
Generating interest in your products or services
As a marketeer or a savvy business owner, you’ll look to the huge new market of NFT’s to help increase conversions and drive revenue. By incorporating NFT’s into your marketing strategy, you’ll be able to generate more interest in your brand, products and services by showing your business to be at the forefront of the latest technology and trends.
Creating unique brand experiences
If you incorporate NFT’s into your social media marketing strategy, you can solidify your brand’s story. You can offer something unique and tangible to your customer base that not only represents their experience with your brand, but gives you even more exposure.
Building your brand’s identity
Consider inviting artists to create tokens for your brand and support them with the exposure and the revenue generated by their creations. Not only will your brand be exposed to new audiences, you’ll be able to give back to your customers in a way they will really value and you’ll be helping creators too. Win, win, win!
Increasing brand awareness
As stated above, by offering your customers unique, branded NFT’s, a whole new level of personalisation becomes possible, increasing your brand awareness online and in the real world and solidifying customer loyalty.
Building online communities
You could run online competitions that offer NFT’s as prizes to your online community. If done correctly, you can gain a lot of new followers and get your business seen by thousands of new people. You could also try your hand in user-generated content, welcoming suggestions from your followers about the type of NFT’s they would like to own.
Supporting social causes
In our modern world people care deeply about whether brands represent their values. One way your business could demonstrate your brand’s dedication to social causes is by using NFT revenue to support charities that give back in some way. Make sure to pick a cause that is close to your own heart, authenticity is key for building strong relationships with your brand’s followers.
Stay in touch
How will you incorporate NFT marketing into your business strategy? If you found this article interesting and want to stay in the loop with all the latest trends, follow us on socials @circulatedigital.
