NFTs: What do they mean for brands?

Brands look to NFTs as a new way to connect with consumers and generate revenue, but what do NFTs mean for brands really?

NFTs started popping up in March when Jack Dorsey sold his first tweet as an NFT for just under $3 million, and even more, after a collage by artist Beeple sold at a Christie’s auction for $69 million. Since then, brands, celebrities, and agencies have been trying out the new medium as a way to engage customers and generate new revenue streams.

K, but WTF is an NFT?

Let’s start with a definition.

A non-fungible token (NFT) is essentially a unique digital asset, built on blockchain technology that represents ownership of real-world items like art, video clips, music, and more.

What are NFTs actually?

“Everydays: The First 5,000 Days” Beeple’s collage of 5,000 images that took 13 years to make, sold for 69 $ M triggered the NFT craze.

A passing fad? A future tool for artistic compensation? The art of money laundering? A good investment? A great business opportunity? Eccentric modern-day digital collectibles? A digital authenticity certificate? A new way for people to enjoy themselves while making money at the same time?

The answer is all, but a passing fad. NFTs are here to stay…

What’s the point of NFTs?

It really depends on whether you’re an artist, an art lover, a buyer, a gamer, a businessman, or a collector, but in this article, we’re going to talk about what they mean for brands.

Brands are suffering from FOMO.

Everyone’s either doing NFTs, thinking about doing NFTs, or suffering from FOMO because they’re not doing NFTs.

According to recent research from The Harris Poll and R&CPMK, about half of consumers familiar with NFTs (47%) are interested in brands offering them as a commercial product, providing new use cases for brand marketers to capitalize on the digital tokens.

47% of consumers familiar with NFTs are interested in brands offering them as a commercial product.