New York-headquartered Myntr says the technology has gone beyond a novelty: and that the barriers to entry for both brands and consumers are not as high as thought.
Let’s start at the beginning: What is an NFT?
A non-fungible token (NFT) is a digital asset that you can prove you own via the blockchain and can be any form of digital media (an image, video, audio file, etc.).
NFTs rose in popularity during the crypto market explosion in 2017, but didn’t become a mainstream talking point until early 2021.
From games and collectibles to legal documents and brand memberships, how NFTs are used is expanding.
“That expansion of use cases is the biggest link between NFTs and growing interest from marketers, because as we’ve seen our world transition into a more digital age, there are more and more eyeballs in the digital space,”explains Jeff Robie, co-founder and head of customer success at Myntr, an NFT agency that aims to be the ‘go-to’ resource for brands looking to create NFTs.
“Not only that, but as the physical and digital worlds become even more interconnected, this will only help the crypto and NFT ecosystem even more. ,How many people now use cash on a daily basis? How many times have you used your apple wallet to attend a concert? How many physical resumes have you given out?,
“As the physical and digital worlds collide, marketers have an opportunity to engage with and reward their brand’s biggest fans.”,
Luxury brands in particular gravitate towards projects that play up the design and digital innovations of the space, while smaller brands tend to focus on giving their customers real value, according to Robie.
“One good example I’ve seen is Budweiser, which the Budverse Legends collection with a social good aspect in addition to exclusive perks like merchandise or even a chance to meet Dwayne Wade.”,
.@budweiserusa NFT trading is! Free claims for NFT tin holders. They are killing web3 and building a community of brand champions. It seems that more people will want to own the first NFT of a 100-year-old brand, especially in 10 years.
PS there are only 1936 of them. NFA. pic.twitter.com/h7HvzC78LS
— CryptoSteve.eth (@CryptoStylesUSA) 2 July 2022
Hennessy, meanwhile, used NFTs quite differently to fit its brand and image.
“Hennessy dropped an exclusive collection this year that represented ownership of ultra-rare, limited edition bottles of Hennessy 8. The NFT serves as verification of ownership and authenticity, and you can even have the actual bottle delivered upon request.”,
Hennessy joins the NFT space: pic.twitter.com/cKvmCNYOBq
– Yahoo Finance (@YahooFinance) February 7, 2022
‘Even in their infancy, NFTs are already changing the game for marketers’
So what is the point of NFTs and why should brands consider them?
It’s no secret that the market is as competitive as ever, and brands need to find new, creative and impactful solutions to really resonate with consumers.
“NFTs provide brands with another tactic to connect with customers and develop a relationship beyond a transaction. They provide an opportunity to build a tight-knit community of like-minded people and loyal brand advocates. NFTs can provide a revenue stream be, or it could simply be a way for brands to provide consumers with a digital membership asset.,
“Creating a community around NFT holders who know they will receive unique or exclusive engagements as part of their benefits helps build a relationship they not only want to be a part of, but look forward to.”,
For example, Myntr recently partnered with Toronto-based cake and snack company SnackConscious to create the TasteMakers Membership: offers members perks like early access to new flavors, limited edition merchandise and product discounts.
“If you look at NFTs just 12-15 months ago, a brand could try to create a collection simply as a revenue stream, and if it fails, then so be it,” Robie said.
“Fast forward a few months later and you can find examples of brands across a variety of industries, food and beverage included, looking beyond novelty and adding tangible, real benefits for consumers who like them. This is a drastic change in ‘ a very short period of time, and there is so much more to explore. ,
“And because NFTs can be any kind of digital medium, the possibilities are endless when you decide exactly what you want your membership or loyalty asset to be, whether it’s an iconic moment in time, a custom graphic or a personal audio message from a celebrity.”,
If you’re good at marketing, you’ll be good at NFTs…
So what makes a good NFT collection?
‘Creating a more personal relationship with your consumer will never go out of style’
At the end of the day, the answer is surprisingly simple and not that different from classic marketing techniques.
“,It all comes down to being authentic,”said Robbie. “Each brand can use NFTs to provide different levels of value to their consumers, but the design, the rewards and ease of use must all be aligned with the brand’s values. ,
“That’s why luxury brands like Dolce & Gabbana and Gucci are able to create completely different projects from something like the Nike + RTFKT Studios CryptoKicks collection. They can play with more expensive and innovative projects because they are known for making big take swings. ,
“But not every brand is Nike or Gucci. ,For brands that don’t play with the same marketing budget, they can still focus on what they know their consumer loves: them. Creating a more personal relationship with your consumer will never go out of style, and is extremely valuable to any brand, regardless of size. Even at the base level of customer interaction, membership and loyalty programs have existed for years. Now, through NFTs, marketers are able to enhance their brand value and connect with brand communities like never before.” ,
Should small brands enter the big world of NFTs?
Until now, NFTs have largely remained the domain of large companies with the time and resources to put into the technology.
“,We have traditionally seen NFT collection launches from big brands with big marketing budgets who can afford to try something different without expectations,”said Robbie.
But he sees the market changing.
“You can probably find several new NFT collections being released every week now, as brands seem to be at the forefront of the technology curve. Looking at the current NFT landscape, you realize that the barrier to entry can be steep; not necessarily not from a monetary point of view, but from simply not having the resources or knowledge to effectively strategize, create, create and distribute an NFT collection.,
The real barrier to adoption, he explains, is that small brands remain intimidated by NFTs and lack the resources, understanding and motivation to explore the idea. But he believes NFTs can and will have a place to help brands of all sizes.
“As a company, we compared NFTs to the early days of e-commerce adoption,”he says.
“While several big brands may have made the leap to add e-commerce to their overall strategy, some SMBs have been reluctant to join the bandwagon simply because they didn’t understand the benefit of the technology or didn’t have the had means to have a proper strategy effective.”,
As an NFT agency, Myntr’s aim is to lower that entry barrier: so they can enter the space ‘easily, efficiently and purposefully’.
“The barrier to entry, not just from a brand perspective, but a consumer perspective, has gotten much lower. It’s gotten so much easier for the average consumer to participate in the space, and will only get easier as time goes on. Brands those who choose to embrace this digital expansion will be better off in the future, as those brands that were early adopters of e-commerce have benefited.” ,