What is NFT & How NFT can be used in Digital Marketing

Introduction to NFTs

Non-Fungible Tokens (NFTs) are a type of digital asset that represent ownership or proof of authenticity of unique items or content, using blockchain technology. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible and can be exchanged on a like-for-like basis, NFTs are unique and cannot be exchanged on a like-for-like basis.

NFT is a digital asset that can represent anything from a piece of artwork to a tweet. Unlike other digital assets, NFTs are unique and cannot be duplicated. This makes them ideal for use cases like digital collectibles, gaming, and copyright protection. NFTs are stored on a blockchain, which allows them to be bought, sold, or traded like any other cryptocurrency.

In the past few years, NFTs have emerged as a popular tool for digital marketing. Brands can use NFTs to create unique experiences for their customers and track the success of their campaigns. For example, Adidas created an NFT-powered virtual running club that allowed users to collect virtual badges as they ran.

The company also used NFTs to launch a line of virtual sneakers that could be purchased with cryptocurrency. As the use of NFTs continues to grow, we can expect to see more brands using them to engage with their customers in new and innovative ways.

What is NFT?

NFTs or non-fungible tokens are digital assets that are unique and cannot be replaced. NFTs are stored on a blockchain, which allows for secure ownership and transfer of the asset. NFTs can represent anything from digital art to in-game items, and have been gaining in popularity due to their ability to provide true ownership of digital assets.

What is metaverse?

A metaverse is a virtual universe that uses virtual reality to allow users to interact with each other and with digital objects. It is often described as a “virtual world” or “virtual reality world.” The term was coined by science fiction writer William Gibson, who used it in his novel Neuromancer. The metaverse is also sometimes used to refer to the internet itself, or to any large online community such as Second Life. However, the term is most often used to refer to a future version of the internet that would be far more immersive and interactive than the current version.

This future metaverse would likely be based on virtual reality and would allow users to create their own avatars, or digital representations of themselves. They would also be able to interact with each other and with digital objects in a realistic way. The metaverse is often seen as the natural evolution of the internet, and many believe that it will eventually replace the physical world as the primary form of human interaction.

NFTs can be used in metaverse for digital avatars, buying/selling accessories for digital avatars such as what presently Roblox is doing (in-game merchandise and subscription), this can be transformed into NFT-metaverse thing.

Virtual training and classes have also high potential to use NFTs in metaverse.

According to Morgan Stanley, the multinational investment bank, NFTs have the potential to become a $56 billion market by 2030.

NFTs in digital marketing

NFTs can be used in digital marketing in a number of ways. For example, brands can use NFTs to create unique experiences for customers or to reward loyalty. Additionally, NFTs can be used to create scarcity around a product or service, which can drive up demand and create a more exclusive experience for customers.

Branding and Promotion

NFTs offer a new way for brands to engage with their audience. For instance, brands can create and sell NFTs related to their products or services as a form of promotion. This not only generates buzz but also creates a new revenue stream.

Customer Engagement

NFTs can be used to incentivize and reward loyal customers. For example, brands can offer exclusive NFTs as rewards for loyalty or engagement. These NFTs can serve as digital collectibles, creating a sense of exclusivity and value.

Content Monetization

For content creators, NFTs provide a new way to monetize their work. They can sell their content as NFTs, allowing them to profit directly from their work. Furthermore, NFTs can be programmed to provide creators with royalties each time the NFT is resold.

Challenges with NFTs in Digital Marketing

While NFTs offer exciting possibilities, they also come with challenges. These include environmental concerns due to the high energy consumption of blockchain networks, legal issues around copyright and ownership, and the volatility and unpredictability of the NFT market.

How brands are utilising NFT?

Some of the world’s biggest brands are utilising NFTs in innovative ways.

Adidas NFT holders have a number of perks, including first dibs on real-world fashion drops and clothing items, which will be distributed in phases to NFT owners in the metaverse and in real life. Those who purchased these NFTs get all IRL perks for free plus access to premium experiences in The SandBox.

For example, Nike recently launched an NFT-powered sneaker line called the Air Max 1 Token, which allows customers to customize their sneakers using NFTs. Nike’s first collection of shoes for the metaverse is fetching astronomical sums. The collection, known as CryptoKicks, is being auctioned off as non-fungible tokens (NFT) on online marketplace OpenSea.

Additionally, McDonald’s is using NFTs to reward customers for their loyalty, with the fast food chain giving away NFTs that can be redeemed for free food and other prizes.

Few other brands who have stepped in-

• Chiptole
• Gucci
• Coca Cola
• Marriott Bonvoy travel program (Build Brand Awareness)
• Bicycle Cards (Expand Audience Reach beyond Facebook look alike audience)
• Robert Mondavi Winery (Protect Brand Image)
• Kinetic Sand (Supporting a Good Cause)
• AMC Theatre/Spider-Man (Promote In-Person Events)
• Gary Vaynerchuk (Pre-order of books & loyalty/offers)
• Taco Bell
• Charmin

Best NFT Platforms or Marketplaces to buy /sell NFT

1. OpenSea.
2. Axie Marketplace.
3. Larva Labs/CryptoPunks.
4. NBA Top Shot Marketplace.
5. Rarible.
6. SuperRare.
7. Foundation. app
8. Nifty Gateway.
9. Mintable
10. Theta Drop
11. AsyncArt.
12. Crypto.com.
13. Decentraland.
14. KnownOrigin.
15. MakersPlace.

Top Blockchains used for NFT Development

1. Ethereum,
2. Flow,
3. Binance Smart Chain,
4. Cardano,
5. Solana,
6. EOS,
7. WAX,
8. Algorand,
9. Tezos,
10. Tron

7 Tips to Spot Promising NFT Projects Early

1. Scour Twitter. Twitter is one of the most effective platforms for finding promising NFTs in their early stages.
2. Be Active on Discord.
3. Leverage the Power of Nansen.ai.
4. Review the Project’s Roadmap.
5. Check RyzeNFT.
6. Keep an Eye Out for New Activity on OpenSea.
7. Check Out Icy Tools.

Use of Discord Server in NFT Trading

What is a discord server?

Channel: Discord servers are organized into text and voice channels, which are usually dedicated to specific topics and can have different rules. In text channels, users can post messages, upload files, and share images for others to see at any time.

With over a quarter of a billion users, Discord(Opens in a new window) is one of the most popular ways gamers communicate online. Discord lets friends communicate directly via voice, video, or text, and join servers where larger communities can interact together.

Learn how to start your own discord server

Why discord is used in NFT?

If you are an NFT enthusiast, NFT Collector, NFT Artist or want to be a part of the NFT Community, you definitely need to be in Discord. Discord and Twitter are the newspapers of the NFT and Crypto world. If you want to become successful within this industry you may understand how to leverage these tools.

NFT communities are usually present on social networking platforms like Discord. These are people that are actively collecting, trading, selling, and engaging in conversations about Non-Fungible Tokens or NFTs.

Marketing is all about storytelling and with your NFT project, you have a story that needs to be heard. Through Discord, you have the opportunity to share the story of your brand directly through video, words, and images.

Methods how you can grow your NFT Discord chat by thousands of members.

1. Promote Your NFT on Reddit. With over a billion monthly visitors, Reddit is one of the most popular websites.
2. Collaborate with other NFT Projects.
3. Host a NFT Giveaway on Twitter.
4. Collaborate with NFT Influencers.

The Top 10 NFT Discord Servers

• Crypto Baristas discord group
• NFT discord group
• Dribblie discord group
• Meta Generation discord group
• Enter discord
• Rarible discord group
• OpenSea discord group
• Nouns discord group
• Decentraland discord group
• VeeFriends discord group

As NFTs become more popular, we can expect to see more and more brands utilising them in creative ways. Do you want to share more info about NFT? Comment below.

Conclusion

NFTs have the potential to revolutionize digital marketing by offering new ways for brands to engage with their audience, monetize content, and promote their products or services. However, like any emerging technology, it is important for marketers to understand the risks and challenges associated with NFTs.

Complete NFT Glossary