The Role of Non-Fungible Tokens (NFTs) in Digital Marketing
Updated: May 27, 2022
The Role of Non-Fungible Tokens (NFTs) in Digital Marketing:
Non-fungible tokens (NFTs) are digital assets that are unique in nature and can only be owned by one person. The tokens were first introduced to the gaming industry, where they were used to monetize them as collectibles.
Since then, NFTs have been integrated into other industries like real estate and art as well and of course, to say all of these are still in the infant stage.
For marketers, NFTs can be used to create brand loyalty and product awareness. As per Statista, Blockchain with the highest market share in DeFi is Ethereum.
The History of Non-Fungible Tokens:
Non-fungible tokens were first introduced to the gaming industry as an alternative to game-play currencies like gold coins. They were used to monetize them as collectibles, which led to the evolution of game brands like Pokémon.
Since then, NFTs have been integrated into other industries like real estate and art where they are used for digital asset rights management. For marketers, NFTs can be used to create brand loyalty and product awareness through gamification.
Types of NFTs And Their Purpose:
NFTs can be divided into three categories:
Non-fungible tokens, which are unique digital assets that cannot be divided or broken up. They are also referred to as "one-of-a-kind" digital assets.
Fungible tokens, which are a type of NFT that is divisible and can be broken up into smaller units. This includes cryptocurrencies like Bitcoin.
Smart tokens, which are tokens that act like both fungible and non-fungible tokens by having one's ownership of it transferred between different people.
NFTs have the ability to create brand loyalty for companies since they can provide customers with an exclusive experience.
It can also help build product awareness for businesses with limited supply instead of relying on traditional marketing efforts like ads or social media posts.
As per Statista, NFT trading activity more than doubled between July and August 2021, according to the number of unique wallets that either bought or sold an NFT. By August 2021, there were roughly 280,000 unique buyers or sellers - the source does not distinguish between the two - after a growth of 185,000 unique wallets.
Different Ways To Use NFTs In Digital Marketing:
Non-fungible tokens (NFTs) are a type of digital asset that is unique in nature and can only be owned by one person. The concept was first introduced to the gaming industry, where it was used to monetize them as collectibles. Since then, NFTs have been integrated into other industries like real estate and art as well.
For marketers, NFTs can be used to create brand loyalty and product awareness.
The most common type of NFT is the ERC721 token which is based on Ethereum blockchain technology and issued through smart contracts.
These tokens can be used for marketing purposes by implementing them into your website or mobile application with just a few lines of code. For one thing, these tokens make it easy for marketers to build customer loyalty by rewarding customers with tokens instead of points or "likes."
In addition, when brands give away limited-edition branded items such as T-shirts or coffee mugs using an ERC721 token system, they are able to collect data about their customers in a more efficient way than in the past.
In my opinion, the metaverse plays a greater role in the coming months and years to provide opportunities for using such NFTs in their new virtual space for various marketing and business reasons.
As a digital marketer, you need to be aware of the many different types of NFTs that exist. By understanding how they can be used to reach your marketing goals, you will be able to fully harness the power of this new technology in the coming days and months. It is also said, the Web 3.0 is arriving which supports such NFTs to play around in the domain of Digital Marketing.
Finally, there is a need to watch the transformation that happens in the Internet Space in the future through NFTs and explore how best these can be accommodated in the various digital marketing campaigns and goals.
All the best...
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