January 19, 2022 - Brittany Garlin
Cryptocurrency has been a hot topic in the digital world for the past few years and there has been a new buzz word floating around lately, NFTs or ‘non-fungible tokens’. The NFT movement has become a key growth aspect of the broader social media space, and while there are many skeptics, leading brands such as Twitter, Walmart, Hennessy, Balmain, and Barbie have all jumped on board. The growth of NFTs is undeniable, if you’re a company, agency, or investor keep reading — we have great NFT marketing strategies for you to get started!
The decentralized finance (DeFi) industry can be super confusing, as there hasn’t been anything like it before and there is no real regulations in place at the moment, but the bottom line is that NFTs offer a strong proof-of-concept for the transaction of digital goods. It’s crucial to understand that NFTs are a key contender as the optimal currency for the metaverse.
This article will provide you with a fundamental understanding of NFTs and key NFT marketing strategies for 2022.
Non-fungible tokens or NFTs are digital assets on a blockchain with individual identification codes and metadata that differentiate them from one another. Unlike cryptocurrency, NFTs cannot be traded or exchanged at the equivalence of others as they are not identical to one another.
As is stands, NFTs are changing digital art, sports collectibles, media, and more. This ecosystem revolutionizes how digital goods are created, distributed, and collected.
Fungibility is when a good’s individual units are interchangeable and indistinguishable in value. Currency like U.S. dollars are fungible. Every U.S. dollar is interchangeable and has the same value as any other dollar.
A Non-Fungible Token (NFT) or good has unique properties, making it have a different value from other similar tokens or goods. A house with a pool is valued different and isn’t interchangeable for a house without a pool. A pool can be one of many different properties that make houses non-fungible and be worth different values. Similarly, a non-fungible token will have different artistic properties or other properties that render it unique from other tokens, giving it a unique value.
The Metaverse is a digital universe where virtual reality, video, and augement reality users “live”. Put simply, it is a combination of elements of technology where your digital self can inhabit. In the metaverse you create a digital avatar that represents yourself that can interact, connect, and move around with other digital users in this virtual world. If you want a cool example of the metaverse and the future of the internet, watch this story from the Wall Street Journal.
As shown in the above story, the idea is that users eventually will have the ability to attend concerts, go shopping, participate in conferences, and go on virtual trips in the metaverse. How NFTs play a role in the metaverse is through the digital assets and the value they are given. In the metaverse, users can show off their digital assets such as art and property, and the NFTs will provide proof of ownership with a price associated.
The DeFi industry is fairly new and as it currently stands, there is no real government regulation (at least in the United States). However, this can change as more brands adopt to the metaverse and NFTs.
Other countries, such as China, have added more regulations to crypto trading and mining markets–which have greatly impacted the industry in their country. The same type of regulations applied in the US are unlikely, but it is something to consider for NFT advertisers.
Fraud and scams have become more problematic in the decentralized finance sector. In 2021 alone, DeFi investors lost more than $14 billion due to fraud or theft, a 79% rise from 2020. The public is already skeptical of this industry and if this continues to be a persistent problem, it can make it all the more difficult for marketers to launch strategies to an audience that is extremely untrusting.
Another thing for advertisers to consider is the role crypto mining has on the environment–it is highly energy intensive. As the world becomes more forcused on improving climate change, people are going to have growing concerns around the sustainability aspect of crypto.
One thing to note is new methods are being developed and implemented to reduce the energy utilized in cryptocurrency.
There is competition in every industry, getting a product to show up on the first page of Google for relevant keywords is key for any business’s growth. With more NFTs becoming available, artists and creators will need to get their product in front of their ideal target audience.
If an NFT project is utilized for buying and selling NFTs, retaining liquidity through adequate trading volumes is important for users to sell their NFT’s without undergoing a long waiting period. One NFT marketing strategy is having a strong SEO strategy of your NFT project and targeting keywords commonly used by your target audience.
It’s crucial for an NFT project to build a community where people can interact with you and stay up-to-date on your project’s progress. The first step is creating a dedicated place for your investors and users to stay in touch.
Social media can be very effective as a less defined community space for your NFT project. Twitter is already a central location for NFT discussion making it a great option for you to build your community on—Reddit is also a viable option. Something to consider for your NFT marketing strategy is that the NFT community is very similar to the gaming community, so platforms such as Discord are also a great option!
Crypto investors regularly check Twitter, Reddit and other social media platforms for quick updates and tips about the market. Your brand can gain the audience’s attention and easily engage with them by having an effective social media strategy.
One NFT marketing strategy that has been rapidly adopted is through giveaways! Oftentimes you will see these taking place on Twitter as a way to increase your NFT project’s brand awareness and familiarize the audience with your unique offering.
NFT giveaways also can assist in increasing signups for NFT marketplaces by requiring users to sign up in order to claim the NFT. This also could be a requirement for users to participate in the giveaway by having a profile on your NFT marketplace. This is very similar to Instagram contests where users must follow an account and like the post in order to be entered.
In 2022, influencer marketing is a key strategy used by many businesses to foster credibility with a defined audience. For the DeFi industry, this is something you may want to incorporate in your NFT marketing strategy since there a number of people with concerns as mentioned above.
If people are unfamilar with your NFT project, tapping into this level of credibility can assist in converting users. Influencers and press have the ability to drive social influence and even normative influence to the prospective audience.
By incorporating influencers and generating some press around your NFT project, you can lower the barriers to trial. One example of this is Snoop Dog’s NFT which achieved bids as high as $108,000!
Although nobody can predict the future, one thing that has been proven successful is the early adoption to digital trends. TikTok users that started creating content from the beginning are now well-known content creators making millions. NFTs and the metaverse have the power to revolutionize the digital landscape as we know it.
Businesses and investors that are looking for support with their NFT marketing, should work with a vetted NFT marketing agency that has experience with the DeFi industry and have launched lucrative maketing strategies.
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