NFTs- Recent Fad or Advertising Upgrade?
Non-fungible tokens, or NFTs, have been turning heads in almost every industry. These “digital collectibles'' can’t be copied or substituted, and are guaranteed to be one-of-a-kind through blockchain technology.
What does this mean? It means that these tokens are original digital artwork, and can be used for distinct purposes. Each NFT has a signature that is encrypted on the blockchain by the artist who created it. CNN writes, “[the blockchain is] a digital ledger that is the backbone of cryptocurrencies like Bitcoin and Ethereum—allowing sellers and buyers to verify authenticity and ownership.”
This is important considering digital artists' prior inability to protect their work. But now artists, brands, influencers, musicians, and any digital creator can all protect their digital assets throughout every medium.
So, now that we know what NFTs are, how are they used? In short, NFTs can be digital trading cards, characters, items such as food or makeup products, and even music. The possibilities are endless when it comes to NFTs. Think of a physical object rendered into a digital equivalent (perhaps something that could be used in Facebook’s soon-to-be ‘Metaverse?’) Then, these digital assets can be bought or sold online with cryptocurrency.
Okay, but how does this pertain to us, as advertisers? Advertisers are leveraging brands to create NFTs: selling digital products and establishing deeper relationships between brands and their consumers.
So, is it likely we will work with NFTs, throughout our advertising careers? Is this the future of advertising, or just another trend that will soon pass? It’s difficult to say this early on—even experts are unsure of NFTs’ role in the future of advertising.
Personally, I can’t help but think of the possibilities NFTs have when considering the rise of experiential advertising. Brands and advertisers are actively seeking out new ways to engage their consumers throughout every medium.
With NFTs, brands can use these tokens as an innovative way to connect with their consumers, ramp up publicity, and ultimately generate revenue. Not to mention, the consumers feel special. They have a unique asset from the brand, and can even sell it later on. Similar to stocks, digital assets can be traded, sold, and can appreciate or depreciate in value overtime. Unlike stocks, NFTs can be used as your new IG profile pic!
Consumers and brands everywhere are catching on to this new digital asset. AdAge even started a blog in which they regularly update brands on how advertisers are leveraging NFTs. Throughout 2021, brands have been implementing this technology into their advertising techniques.
Check out some NFTs that were made by: E.l.f. Cosmetics, CNN, Stella Artois, American Eagle, and even filmmaker, Quintin Tarantino here.
NFT, Everydays: The First 5000 Days—created by Beeple—sold for $69 million in March 2021.
Lil Baby’s Twitter Profile Picture—NFT, Bored Ape #129, made by Bored Ape Yacht Club (worth over $200k USD or 40 Ethereum (ETH.))
Interested in Creating NFTs and Selling Them?
Before you create/sell/buy, consider looking into the environmental impact these NFTs can have—You’d be surprised. Not to mention the “gas” fee or conversion fees can be costly.
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