NFTs remain a controversial topic; agencies are starting to look at the space as a specialized service area. Just what do NFTs mean to leading brands and young HNWIs (high net worth individuals) and HENRYs (high earners not rich yet)?
The recent headlines about NFTs have centered the digital artworks being sold for outlandish sums of money or investors trading sports highlights. Similarly, leading brands are beginning to leverage the new blockchain-based technology. Earlier this year, Coca-Cola shared a range of NFTs that brought it a tremendous success.
You can trace a digital asset’s entire lifecycle
Best described as digital tokens that can be bought and sold on a blockchain; NFTs are riding on the growing popularity of blockchain technology. The blockchain’s attractiveness comes from its ability to become an incorruptible digital ledger where you can trace a digital asset’s entire lifecycle. The rise of non-fungible tokens (NFTs), says Labrys CEO Lachlan Feeney is about blockchain technology instead of the digital tokens themselves. He added:
“NFTs have actually been around for some time now, but have landed in a big way this year with businesses, and marketers in particular, for their ability to create value for digital assets – we call this the monetization of culture […] NFTs are really the tip of the iceberg for blockchain’s potential and are far from a passing craze.”
Burger King recently launched an NFT-based sweepstake around their BK Keep It Real Meals. The firm said the promotion was designed and supported by NFT marketplace Sweet to promote an experience and easy adoption of the technology. The result could see many brands looking to cash in on interest in collectible NFTs and crack the code of using blockchain technology to encourage sustainable consumer attention and engagement. It comes down to experience. Burger King Spokesperson said:
“At Burger King, the guest experience is at the core of everything we do, and we’re always looking for innovative ways to engage with our guests […] the BK Keep It Real Meals campaign felt like a natural fit to launch this kind of large-scale NFT-based game that would allow guests to engage with our brand and this campaign in a unique, culturally relevant way.”
Protects the designers’ creativity and preserves the individuality of a product
NFTs date back to 2012, but it wasn’t until 2017 when they started attracting attention with Crypto Kitties. Each of those digital kittens that could be raised as real cats traded for up to $140,000 apiece. It’s the non-fungibility of digital assets that could be winning over young HNWIs and HENRYs.
For instance, the world of luxury products was plagued by fraudsters who created counterfeits. NFTs have the substantial benefit that they cannot be duplicated. This is a big plus for brands and clients, as it protects the designers’ creativity and preserves the individuality of a product for the buyers. Feeney said VISA’s decision to join the NFT bandwagon shows brands are showing interest in the NFT space. He added:
“Visa’s purchase of CryptoPunk 7610 is a huge statement in terms of brand credibility amongst the digital communities that engage with these assets […] brands have long understood the marketing power that comes from collectibles and NFTs are ushering in a new digital era for this marketing strategy.”