branding, marketing and expansion
New York-headquartered Myntr says the technology has moved beyond being a novelty: and that the barriers to entry for both brands and consumers are not as high as previously thought.
Let’s start with 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 of 2017, but didn’t really become a mainstream talking point until early 2021.
From games and collectibles to legal documents and brand memberships, how NFTs are used is expanding.
“This expansion of use cases is the biggest link between NFTs and growing interest from marketers, because as we’ve seen our world move into a more digital age, there are more and more eyeballs in the digital space,”explained Jeff Robie, co-founder and head of client success at Myntr, an NFT agency that wants 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, it will only help the crypto and NFT ecosystem even more. ?How many people use cash daily now? How many times have you used your apple wallet to attend a concert? How many physical CVs have you issued??
“As the physical and digital worlds collide, marketers have the opportunity to engage with and reward a brand’s biggest fans.”?
Luxury brands in particular are trending towards projects that play up design and digital innovations in the space, while smaller brands tend to focus on providing customers with real value, according to Robie.
“A good example I’ve seen is Budweiser, which released Budverse Legends Collection with a social good aspect as well as exclusive perks like merchandise or even a chance to meet Dwayne Wade.”?
.@budweiserusa NFT items are! Free claim for NFT box holders. They are killing web3 and building a community of brand champions. Seems like more people would 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, has used NFTs quite differently to suit its brand and image.
“Hennessy dropped an exclusive collection this year that represented ownership of ultra-rare, limited edition Hennessy 8 bottles. The NFT serves as verification of ownership and authenticity, and you can even have the bottle itself delivered upon request.”?
Hennessy joins the NFT space: pic.twitter.com/cKvmCNYOBq
— Yahoo Finance (@YahooFinance) 7 February 2022
“Even in its infancy, NFTs are already changing the game for marketers”
So what’s 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 give brands another tactic to engage with customers and develop a relationship beyond a transaction. They provide an opportunity to build a tight-knit community of like-minded and loyal brand advocates. NFTs can be a revenue stream, or they can simply be a way for brands to give consumers a digital membership.?
“Creating a community around NFT holders who know they will receive unique or exclusive engagements as part of their benefits helps build a relationship that they not only want to be a part of, but look forward to. “?
For example, Myntr recently partnered with Toronto-based cookie and snack company SnackConscious to launch TasteMakers Membership: offers members benefits such as early access to new flavors, limited edition items and product discounts.
“When you look at NFTs just 12-15 months ago, a brand might try to create a collection just as a revenue stream, and if it fails, that’s it.” Robbie said.
“Fast-forward several months later, and you can find examples of brands across a range of industries, including food and drink, looking beyond the news and adding tangible, real-world benefits to consumers who hold them. It’s a drastic change in a very short time and there is so much more to explore. ?
“And because NFTs can be any digital medium, the possibilities are endless when deciding exactly what you want your membership or loyalty element to be, whether it’s an iconic moment in time, a custom graphic or a personalized 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,”says Robbie. “Each brand can use NFTs to provide varying levels of value to their consumers, but the design, rewards and ease of use must all align 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’re known for taking big swings. ?
“But not every brand is Nike or Gucci. ?For brands that aren’t playing with the same marketing budget, they can still focus on what they know consumers love: them. Creating a more personal relationship with your consumer will never go out of style and is extremely valuable to any brand of any size. Even at the basic level of customer interaction, membership and loyalty programs have been around for years. Now, through NFTs, marketers are able to increase their brand equity and engage with brand communities like never before.” ?
Should small brands enter the big world of NFTs?
So far, 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 launched from big brands with big marketing budgets who can afford to try something different without expectations.says Robbie.
But he sees that the market is changing.
“You can probably find several new NFT collections being released every week now, as brands seem to be ahead of the technology curve. When you look at the current NFT landscape, you realize that the barrier to entry can be steep; not necessarily from a monetary standpoint, 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 that NFTs can and will have a place in helping brands of all sizes.
“As a company, we have compared NFTs to the early days of e-commerce adoption,”he says.
“While several large brands may have taken the plunge to add e-commerce to their overall strategy, some SMEs were hesitant to join, simply because they did not understand the benefit of the technology or they did not have the funds to promote a proper strategy effectively.”?
As an NFT agency, Myntr’s aim is to lower that barrier to entry: allowing them to enter the space “easily, efficiently and with purpose”.
“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 over time. Brands that choose to embrace this digital expansion will be better for it in the future, as those brands that adopted e-commerce early benefited.” ?
