Why NFT marketplace development will soon be the key for the advertising and marketing industry
By Gayatri Jhaveri Patel
We are witnessing a rapid rise of a new phenomenon in the digital world: non-fungible tokens, or as we call it “NFTs”. The market is expanding in everything, from culture to fashion, luxury, cosmetics, cuisine, and real estate. Consumers and investors are increasingly showing interest in blockchain-related technology. These digital tokens are upending codes and forcing large corporations to rethink their marketing and communication strategies.
NFTs are based on the same blockchain technology that runs cryptocurrencies, and they essentially represent ownership of unique digital assets like images, GIFS, videos, music etc. These attract investors, art collectors, gamers, and tech enthusiasts from all over the world as an attractive asset class, that gives them exclusive ownership rights which are owned by only a single individual at any given time, easily tradeable over online marketplaces, hence extremely liquid, though extremely risk averse.
Brands are looking at digital art to expand their offerings and continuously wanting to learn, explore and understand the latest technology, trends and opportunities in the market. Commercialising digital art through sale of unique ownership in the form of NFTs is a successful approach that allows brands to diversify their revenue streams and attract a new segment of consumers that believe in collecting exclusive ownerships. It’s also a novel method to initiate and establish a special relationship between the brand and the consumer and actively engage their community to build on that relationship.
The bulk of NFTs are utilised to commodify digital art productions, and they’re excellent for obtaining ownership of works like digital art, audio files, and video games. And here’s the best part – anything can be sold with an underlying NFT. So, whether you’re an artist looking to sell your art, a buyer looking to purchase art for personal use, or a collector interested in collecting exclusive art pieces, NFTs have application across the horizon!
In terms of digital art, some of the top-selling NFTs belong to digital artists like Pak, Mad Dog Jones, Beeple, Ferocious, XCopy, 3LAU and Trevor Jones, among others.
The fact that each work has a unique serial number backed by blockchain technology and that all NFTs are safeguarded from forgery is the most powerful marketing feature of NFTs. Artists sell a portion or all of their unique digital creations online while earning certain revenues on every transaction the NFT changes ownership while assuring there’s no replication/duplication. This fundamentally revolutionises the way artists and creators have been awarded for the creation. It also simultaneously guarantees purchasers and collectors that they own a one-of-a-kind, unchangeable work of art while making their collections accessible to a wider audience, attracting new audiences who may not otherwise invest in conventional art.
Fashion and Luxury
Big luxury fashion houses are upending the status quo and reimagining fashion in the WEB3.0 age. Big brands have invested in NFTs in a quest for creativity and ongoing innovation. NFTs in fashion and luxury can take many forms, including digital doubles, rare digital assets for the metaverse, and even a new range of digital collections.
NFTs give the fashion and luxury industries a way to prevent counterfeits while still providing great products. The landscape is evolving so quickly that the real use cases are still being discovered as we speak.
Gucci, the Italian fashion house, released a virtual replica of their Virtual25 sneakers in March 2020. Nike followed suit a little over a year later, auctioning off wholly fictitious footwear. Dolce and Gabbana recently offered an NFT line of nine garments and jewelry, valued at 6.6 million euros.
Why Are NFTs so Powerful?
Scarcity In Digital World
It’s no surprise that NFTs have been extremely attractive. Consumers are enthralled by the prospect of owning symbolic, one-of-a-kind, and commercially valuable digital artefacts. They become the proud proprietors of a work or an authentic item that cannot be replicated or falsified. Investors are drawn to them because of their collectability, uniqueness and secure properties.
For some, NFTs are powerful tools for investing while for others it’s a speculating instrument. With thousands of unique digital art pieces available for sale online, it takes a lot of research and knowledge to find the correct NFT that can make you a ton of money. This helps to understand why the NFT industry continues to develop in all areas.
A Complete New Customer Experience
NFTs are a cutting-edge technical breakthrough that enables companies to reinvent themselves and provide a better consumer experience. The NFT phenomenon allows marketers to provide their consumers with a distinct digital experience while also offering them more exclusive services.
NFTs are becoming the new playground for brands, and the marketing trend to watch! With such a development, and the important role that technology will play in the metaverse (according to PwC, virtual and augmented reality could boost the global economy by 1.4 trillion pounds by 2030), NFTs are becoming the marketing trend to watch!
We now have NFTs to verify ownership of digital assets in the virtual realm, just as we have laws to safeguard property ownership. The Ethereum network is used by the majority of NFTs. They’re the twenty-first century’s version of the gold rush. New NFTs will be introduced as people become more knowledgeable, resulting in increased competition. NFT marketing will be necessary for the near future to boost sales of NFT collectables, and specialist NFT marketing organisations will provide services to build communities and boost sales.
The author is founder and head of The G Story. Views expressed are personal.
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