NFT, with its full name, non-fungible token, widely attracted attention after Jack Dorsey, CEO of Twitter, auctioned off his first tweet “just setting up my twttr” dated 21 March 2006 and sold it to Sina Estavi of Turkish origin, the CEO of Bridge Oracle, for 2.9 million dollars.
While NFTs can be bought and sold like normal money, each token is unprecedented, unique and indivisible. We can also call this digital currency “unique identity codes built on the block chain”. Since NFTs cannot be copied, they can be used as a true proof of ownership of assets. To sum up this confusing definition with an example, we can explain it as follows: Let’s think about Leonardo da Vinci’s Mona Lisa. The original of this painting is on display at the Louvre Museum. However, if a digital Mona Lisa is created on iPad today, it may not be understood which one is original. This is where NFT comes in. With the NFT associated with the original artwork, the original owner of the work will be verifiable.
NFT is considered as an advantageous market, especially for the art world. On the other hand, there is one more subject this popular token can represent: Advertising. While NFTs are gaining popularity in the entertainment, arts, and sports scene, they can also be beneficial for the marketing and advertising industry.
So, how do NFTs appeal to the advertising world? Especially when it comes to Loyalty programs, NFTs can be encoded with CRM data such as Age, demography, spending habits, and other traits that share insights into a consumer’s preferences. Moreover, customization can also be made for sweepstakes. In addition, NFT can enrich the communication between the target audience and the brand by changing the way it interacts with consumers. For example, a fast food brand named Taco Bell started selling its taco-themed GIFs in the NFT market.
“With its viral nature, NFT can be used in more than one field of a brand.”
NFT is expected to change the way it makes money as well as use it in Loyalty programs. So what exactly does this mean? Let’s explain it like this: Imagine being able to price your own data to advertisers. In the future, each individual can have full control of their digital assets, including personal data, with their own digital view. Thus, users can seize a power they have never imagined before.
Transparency is another advantage of NFT. Brands can allow themselves to be cited by granting access to the source of each campaign they run. Thus, the intellectual property, which causes great controversy in the marketing and advertising industry, can be protected thanks to NFT. Original work/campaign can be confirmed with a method that can be backtracked. Industries such as gaming, fashion, and footwear could potentially adopt NFT in their campaigns. In this way, brands can worry less about “sub-industry” products that are pretended to the original.
Likewise, content creators also have the chance to take advantage of NFT. The most common way creators earn money today is by collaborating with a brand or using platforms like YouTube. NFT-based transactions can also potentially affect the relationship between content creators and advertisers.
Of course, the concept of NFT is still fairly new to many companies. Therefore, brands willing to break their status quo can start working with this digital currency immediately by getting a move on. Of course, the way to keep up with this innovation is to work with the right talents with a creative perspective and the necessary knowledge. If brands are ready to adopt this new technology, they can redesign their own future.