You may have heard of NFT – but if you aren’t quite sure what it means, you’re not alone. Polls show that one in four people still don’t understand NFTs and how they’re used.

NFT means non-fungible tokens (NFTs). NFTs are unique digital tokens that are used to signify ownership of art, music, videos and other real-world items. They are generally created using the same type of programming used for cryptocurrencies. However, unlike Bitcoin or Ethereum, NFTs cannot be exchanged or traded equivalently. Instead, they are assigned a unique ID and ownership signature, registered by the blockchain system – each asset is truly one of a kind.

Marketer Neil Patel, explained NFTs this way “a diamond is non-fungible as no two diamonds in the world are alike, and thus each has its unique value. You can’t trade one for another at equivalency.”

So how can brands leverage this new technology to their benefit?

NFT

Here are three ways brands can use NFTs to create unique brand experiences and encourage interaction:

Create unique branded GIFS. Taco Bell did this by selling 25 taco-themed NFT GIFs to benefit its foundation. They sold out in minutes for thousands of dollars each.

Create collectible event tickets. Since each NFT asset is unique and cannot be forged, companies have decided to start using digital NFT tickets. The NFL franchise, for example, decided to turn tickets from its biggest annual event, the Super Bowl, into collectible NFTs.

Create an exclusive product. According to Rock Content, some companies have been using NFTs as a way to provide unique experiences to their customers. This is the case of the Californian winery Robert Mondavi, which decided to launch the first wine label sold by NFT in the world. There are only 1996 bottles collectible and traceable by blockchain technology. Each NFT of wine retails for $3,500 and has a key to unlock a bottle redemption. That would be a potential revenue of $6.9 million dollars.

If done strategically, NFTs can help you increase conversions and drive revenue. Want proof?

Adidas recently launched its first NFT, a collaborative project with Bored Ape Yacht Club, gmoney and PUNKS Comic, earning the company $43 million from the sale of 30,000 copies of a digital asset.

Interested in learning more? Explore OpenSea, the world’s largest NFT marketplace.

About the Author: Jim Gibbs

Vice President of Sales & Marketing at The Dingley Press. Jim has been with Dingley since 2002 and lives in Maine near our Lisbon, Maine plant location.

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