Last year ignited a craze for NFTs, as many individuals and organizations began releasing them, making headlines as memes and images were selling for thousands, if not millions, of dollars. While NFTs continue to sell for lucrative amounts, they’ve stopped making headlines as people have gotten used to the craze. The popularity of these digital assets continues and has even been on the rise, as many companies who did not originally release NFTs are now beginning to drop one-of-a-kind collectibles due to successful NFT marketing strategies.
McDonald’s, the NBA, Coach, GQ, and Forbes. These are all just a few of the companies that are adding a virtual brand to their business by releasing NFTs. These NFTs allow for further user engagement with the brand, such as coupons for real-world goods. Other companies are releasing community platforms where users can buy, sell, and trade the brand’s NFTs, creating a concentrated group of fans whom the company can connect directly. No matter the content of the NFT, these collectibles are being gobbled up by metaverse users and company fans, continuing to fuel the metaverse craze and proving to be a slam dunk for marketing.
The digital product of an NFT cuts manufacturing costs for companies, but still allows for opportunities for giveaways, limited releases, and promotions. NFTs also allow for collaboration between influencers and companies, or being companies, or between influencers. These digital products are fairly easy to produce and have no limit on creative bounds. This makes them an irresistible opportunity for companies looking to boost their brand or reach a new target audience in the metaverse. With millions of individuals already familiar with and using virtual reality technology, NFTs are an easy and relatively cheap way for companies to expand their empires.
How Valuable Are NFTs?
Even though NFTs are still hot items on the market, they do evoke questions from many people. Many of the questions come from how NFTs get their value. Unlike a work of art or a piece of jewelry that gets appraised, an NFT’s value is derived from the type of asset it is on the blockchain. Blockchain is a type of digital register where entries are locked in, making them impossible to change. This makes it handy for NFTs, as the value is locked into the register. Depending on the type of assets whether it’s a GIF, image, or song, the value may be determined by what similar assets are going for, or what sellers are proposing. Many NFT creators use established platforms or companies to sell their NFTs, getting a cut of the profits. The open community of NFT creators and buyers allows them to directly connect, cutting out the middle man and propelling the community forward. This community allows companies to easily find and target specific fan groups with new products or marketing ploys, allowing for easy access to customers and market analytics.
What’s Next for NFTs?
Because NFTs are showing success as marketing tools, it will be no surprise to see other companies release their own lines of NFT products. Companies like Disney have already begun filing patents for specific NFT products, hinting at their future plans. This is good news for most metaverse users and collectors, as new releases of NFTs provide more options to collect valuable items as well as connect with other fans, However, too many NFTs could also be a problem, as the novelty and value of these assets could plummet. once everyone is selling them. Once that point comes, NFTs could regain their reputation of eye-rolls from skeptics. But until that point happens, the golden age of NFTs is still ongoing, with many exciting things to come.