Have NFTs Already Had Their Moment?

The market for non-fungible tokens (NFTs) may have started off volatile from the initial hype; however, with more than $500 million in NFT sales having changed hands in the last 30 days, NFTs aren’t going anywhere. And as more individuals and brands explore this bold new landscape, they’re finding fascinating use cases for weaving NFTs into everyday life.

Take Twitter Spaces, for instance. The audio arm of Twitter has become an attractive place for businesses to begin connecting with their biggest champions. Since Twitter Spaces is also where NFT discussion groups are springing up, companies that want to edge into NFTs and are already on Twitter Spaces can leverage their digital presence to build engaging blockchain-friendly communities.

Really, community is what NFTs are becoming all about. Early adopters of NFTs are defining and growing cultures and subcultures. As a business leader, you may not fully understand where NFTs are headed. Nevertheless, you can’t ignore the fact that they’re part of a fast-moving concept that may appeal to around one-fifth of Millennial and Gen Z consumers. Since these are your future buyers and cheerleaders, you don’t want to ignore the possibility that NFTs could drive stronger connections with them.

This is easier written than done, to be sure. Jumping into NFTs with your marketing team members isn’t something that’s going to happen without some forethought. To ease you into the process of including NFTs as part of your outreach, try these strategies.

1. Prepare for all the costs associated with distributing NFTs.

There’s a misconception about NFTs that they’re somehow just a matter of creating a digital picture. That’s not quite accurate. Yes, they’re digital assets with visual elements. They’re also much more because they require an investment of time and effort beyond just tossing together some intriguing pixels.

Gideon Kimbrell, co-founder and CEO of InList.com, agrees that while NFTs can be minted for as little as $100, succeeding with any NFT initiative can be much pricier. As he explains, “If your current consumer base consists of people who love old-fashioned art and collectibles, for instance, you may have to enlist the help of experts to reach a new, younger demographic of NFT enthusiasts. This can easily turn into a marketing budget of up to $30,000 (or even more) just to get you started with proper brand creation, storytelling and creative direction.”

One way to figure out how much to set aside for your NFT generation and deployment is to find out what other companies are paying. It shouldn’t take long for you to do a little digging to unearth a more realistic cost analysis for your first NFT venture.

2. Weave your NFT into your brand aesthetic.

A huge mistake some companies make with NFTs involves relevance. NFTs are not “build it and they will come” marketing assets. The best corporate-released NFTs have some kind of community connection with the brand.

Take Time Magazine’s TIMEPieces NFT collections. Time releases a special secret word during Twitter or Discord events. Attendees with digital wallets have a specific amount of time to input this password in which Time can airdrop a limited-edition NFT to them. The gamification of this process adds fresh excitement to the experience of involvement with Time online.

Time is hardly the only brand experimenting with connecting its brand with NFT dissemination. New York University professor Arun Sundararajan notes that Nivea and Budweiser have also been successful in captivating target audiences with clever uses of NFTs. Again, your goal should be to make sure the NFT makes sense within the context of what your organization offers and values.

3. Determine which marketplace makes sense for your NFT.

You can’t just email your NFT to users. You must transfer ownership through the right crypto-friendly marketplace. OpenSea is by far the largest of the NFT marketplaces, although Blur is stepping up its game.

How do you know which marketplace to choose, especially if you’re not acquainted with NFTs on a personal level? One suggestion is to work with a marketing consultant or agency that’s already established some traction in the NFT arena for other clients. Another is to just pick one that’s been around and has a strong reputation. Or, you could ask other entrepreneurial and founding peers for referrals.

Be sure whatever marketplace you pick has an audience that reflects your company’s target customer persona. Otherwise, your NFTs won’t have the right appeal.

4. Think creatively when launching your NFTs.

Perhaps the most exciting aspect of NFTs is that there aren’t many rules for you to follow. NFT campaigns can be anything you want them to be. You’re not being held to a standard. That’s freeing—and probably a bit overwhelming, too.

This is where doing some research on other companies inside and outside of your industry will be very helpful. See what’s working and what’s causing a stir. You may also want to tap into your employee base to see if anyone within your organization has embraced the NFT, digital wallet, and crypto craze. If so, that person will help you understand more of the NFT and Web 3.0 ecosystem, which can be a little difficult to wrap your head around if you’re not knee-deep in it.

Ultimately, you want your NFT to spark interest and make sense. The only way to do that is to try something and see if it works. You may have to pivot a few times before figuring out what’s right for your business. That’s okay as long as you go into the process with an open mind.

NFTs are uncharted territory for the majority of companies. But so were social media accounts once upon a time. Rather than turn your back on the NFT and blockchain culture, lean into your imaginative side. There may just be a place for NFTs in your corporate marketing and engagement strategy.