Non-fungible tokens (NFTs) are all over the media, but what if they could be key components in the marketing strategies of the future? The early stages of the NFT phenomenon are a good time to see how NFTs could impact your marketing and bottom line. Let’s take a look at the NFT landscape and investigate the implications for NFTs in relation to social media ecommerce.
NFT BASICS
An NFT is a digital asset that’s fully unique to the purchaser. But there’s more to the appeal of NFTs than simply owning an image or GIF. Smart businesses can use the principles behind NFTs—as well as NFTs themselves—to drive their marketing strategy.
- Strengthen ties to consumers. An NFT purchaser is someone who not only makes an investment in an appreciable digital asset but also in the company it represents. This makes the buyer more than a customer, and the business more than just another company to that customer. It’s a brand in which they now have a sense of ownership.
- Promotes scarcity. A good marketer will emphasize the fear of missing out that comes with NFTs. Since there’s only one of any NFT, consumers must be proactive. Marketers can use that to their advantage by hyping these limited-time opportunities on social media.
- Introduction to crypto. Even if businesses don’t fully embrace NFTs and cryptocurrency now, they should start thinking about how they can incorporate them in the future—because it’s only a matter of time before they become commonplace. Be open to the possibilities that lie ahead and don't be afraid to consider using NFTs and cryptocurrency where appropriate.
HOW NFTS ARE CHANGING SOCIAL MEDIA ECOMMERCE
Though NFTs are still in their infancy, they’ve already changed the ecommerce landscape. It’s only a matter of time before NFTs start to change the social media marketing landscape—and in many ways, they already have. Social media is a space that constantly evolves, and staying in front of the NFT wave is going to separate leading brands and retailers from the followers. Here’s how we’re seeing early adopters use the concept of NFTs in their marketing:
- Social tokens. Similar to an NFT, a social token is a digital entry pass that allows fans and collectors access to exclusive content. This allows content creators to issue media directly to fans, giving them a greater cut of the revenue. At the same time, social token holders also gain an appreciating asset that proves their fandom. An example of this is the $RAC token issued by producer RAC, which gives token holders access to an exclusive Discord server and discounts on merchandise.
- Social media marketplaces. NFTs can’t be purchased directly through social media, but any celebrity can use Facebook, Twitter, or Instagram to advertise their NFTs to a much larger audience than what’s found on NFT marketplaces. In fact, social media itself can be an NFT; for instance, Twitter founder Jack Dorsey sold his first tweet as an NFT. Inevitably, social media platforms will be able to directly sell NFTs, something Facebook parent company Meta is already testing.
- Unique items. Clothing designers and artists can issue truly unique items that come with an NFT that declares the item’s authenticity and ties the purchaser to the creator. These items can be marketed and sold on social media as truly exclusive and unique to the retailer, the creator, and the buyer, resulting in a once-in-a-lifetime purchasing opportunity. A company that specializes in handmade merchandise can use NFTs to convey a sense of authenticity, uniqueness, and modern thinking to interested consumers.
OPPORTUNITIES FOR BRANDS AND RETAILERS
The emergence of NFTs will give rise to new opportunities for businesses. But the change will come quickly, and it’s crucial that companies can pivot to these innovations. Brands and retailers on social media need to be watching the NFT space and preparing now for the chance to capitalize on these ventures. Here are some more examples of how NFTs are already shaping the way brands and retailers market their products:
- Time-specific collectibles. All fans attending this year’s Super Bowl received an NFT to go along with their tickets. Tying NFTs to experiences is becoming more commonplace in sports and entertainment (think old-school ticket stubs), and this concept can be applied to any event staged by a brand. Attendees can share posts from the event and showcase their NFTs, which will generate interest in the next timed exclusive.
- NFTs in retail. We’ve seen some retailers attempt to differentiate themselves by offering add-ins, such as extra tracks on big music releases. NFTs allow retailers the opportunity to do the same. A given retailer’s NFT promotion just might be the thing that gets consumers to shop at their store instead of a competitor’s. Social media, of course, is a great way to get the word out about this type of promotion.
- Brand assets. Digital marketing promotions used to simply exist to sell a product, only to be replaced by a new promotion. Now, marketers can repurpose those graphics, photos, and slogans into NFTs that can be sold to loyal brand advocates. This is a great way for brands and retailers to embrace the past and bring in additional revenue, while simultaneously allowing customers the chance to deepen their ties with the company. When social media allows for the direct sale of NFTs, it will be a very compelling opportunity for both buyers and sellers.
NFTs have already come a long way in the short time they’ve been in the public eye. Further change is sure to come—and the potential for NFTs in social media ecommerce is undeniable. The time is now for brands and retailers to start imagining how NFTs can inform their marketing strategies, while also beginning to plan ahead for changes already starting to trickle into the marketing industry.
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