(NFT image above by Serwah Attafuah)
You’ve probably seen the social media hype around NFTs (Non-Fungible Tokens) with the likes of Elon Musk selling his first tweet, Beeple making over $69M in NFT sales, and The Killers releasing their latest album as an NFT. But what exactly is it and what does it mean for brands? In this post, we’ll be exploring the basics and giving a few of our thoughts on how we see brands leveraging NFTs for exclusive experiences.
Let’s start with the basics, NFTs are a unit of currency stored on the blockchain that contains a unique digital file (this can be anything audio, video, image, or even a game, etc). NFTs allow you to encrypt ownership, so regardless of how much the asset is shared the original digital file can be officially ‘owned’.
Artists from all backgrounds have become the early adopters, unlike a normal sale of physical assets where you receive revenue in return for the object, with NFT’s you can continue to make money from every future sale. The blockchain serves as a built-in verification system where it can always be traced back to the origin which is good for brands that often are duped or replicated (Burberry, Nike etc).
It could be a game-changer, as it gives creators full control over how they create value and scarcity with pieces.
Where’s the opportunity for brands?
There are many creative possibilities for brands to leverage NFTs, defining digital pieces of value is the first step. Collectibles, memorabilia, exclusive collaborations, personalised and limited edition pieces are where brands can start as NFTs appeal to the market of collectors, consumers that want exclusivity.
In theory, brands could sell the physical item and the digital version, like a Yeezy limited edition shoe, one you can wear physically, and one your digital avatar can wear in virtual spaces.
(Image above from Beeple’s NFT collection)
How can we help?
The experience of obtaining an NFT:
Typically the process of obtaining an NFT seems to be very similar to the world of art-buyers, exclusive, high-ticket costs, and inaccessible to the mass market. However, giving away an NFT, creating hype around ‘how’ consumers can obtain an NFT could be a buzz-worthy route for brands to explore. Easter-egg hunt style, brands can take megafans on incredibly interactive, engaging, gamified routes to finding a particular asset.
Designing the space:
Whether a brand plans to sell, auction, or create a gamified experience to obtain an NFT, we can create the world the virtual assets live in. The virtual space could be anything from a gallery to a football stadium, the possibilities are endless and can be in AR, VR, hologram or any other digital form.
Delivering the experience:
Every aspect of creating a value-add needs consideration, what’s the journey you want to take audiences on? We can define the overarching narrative and help you create a buzz-worthy virtual experience.
Things to consider:
There is still a lot to be defined in this space, policing and legislation are yet to be defined so brands still need to be careful. Storage of digital assets needs to be prioritized and this should be a creative process with both CISSO’s (Certified Information Systems Security Officer) and CTO’s involved.
Are NFTs here long term?
Digital creators are able to create value and track their money owed which gives it the potential to transform industries. The opportunity for how brands begin to use NFTs in meaningful ways is yet to be fully explored, but what is for certain whilst there’s a huge hype the media attention for the first brands who create something awesome is almost guaranteed.