Experts predict that NFTs (non-fungible tokens) will be a lasting trend in technology, and they have already permeated industries including art, music, fashion and sports. As such, we hosted a digital conference on the topic to help inform marcomms pros on the opportunity at hand. We heard from presenters Akbar Hamid, whose agency The 5th Column recently launched an NFT division, and Neda Whitney, whose work at Christie’s has shifted to educate consumers on NFTs and explore them as a unique marketing tool. Below, we share takeaways from the conversation as well as recent examples of success in this space.
NFT, Cryptocurrency & Blockchain 101
Community is the foundation of all crytpo, blockchain and NFT projects, focused on providing access for all. NFTs (Non-fungible tokens), are a type of digital asset living on a digital ledger called a blockchain, and it cannot be exchanged, altered or split into smaller parts. NFTs provide a powerful tool to establish and demonstrate ownership rights in the digital asset space where it is often hard to demonstrate such rights given how quickly and easily digital works can be replicated. NFTs make it possible for digital files (like JPEGs) to be certified as unique and not-interchangeable so they can be traded and tracked forever. Here's a great cheat sheat Neda shared:
Why NFTs?
Luxury brands can use NFTs as a tool to ensure authenticity and verification. When it comes to digital assets, the value is decided by the community. Case in point: Dolce & Gabbana just sold their first ever NFT digital fashion collection for $5.7 million. With NFTs, digital creators are continuously rewarded for their work, making royalties every time an NFT is resold. Finally, NFTs provide an opportunity for celebs and artists to cut out the middleman and connect with fans.
The Impossible Tiara, UNXD and Dolce & Gabbana
NFTs are also beneficial from a sustainability standpoint; with blockchain technology, we (the consumer) can now track fabric source all the way to manufacturing and all the steps in between. Note: sustainability is a big buzzword in cryptocurrency and NFTs as the technology uses a lot of energy. This is something brands will need to address as most brands today adhere to certain green guidelines across all their programming.
Key Opportunities for Marcomms Pros
First and foremost, listen: everyone is learning, and no one is an expert. Listening and learning is critical to success in this space. Get involved by creating a wallet, buying an NFT or crypto, joining Discord, etc. Remember this is community-driven, so it’s important to engage.
Marcomms pros can engage their clients to become thought leaders in this space, as well as expand engagement and reach with collection drops, partnerships and collabs. The Discord and Twitter communities are crucial in the success of any true NFT campaign, so any successful marcoms program will have a community manager responsible for solely engaging those two platforms.
Marcomms pros must also understand how to integrate NFTs into every campaign authentically, and not just use an ad campaign as an NFT. Brands must create programs that build communities and drive value for those communities and the businesses themselves.
Arts, Culture & NFTs
Christie's recognized the potential for this new market early on, and as of August 2021, has sold just over 50 NFTs. Every NFT holds value because it’s one-of-a-kind, just like a physical work of art.
No Time Like Present sold September 2021 for HKD 121,642,750
NFTs for Social Good
Metagood is hoping to inspire a billion people to help solve the climate change crisis through a new NFT marketplace for digital collectibles that benefit causes. Metagood makes it easier and more rewarding for creators and communities to come together and launch these philanthropic digital collectibles. The OnChainMonkey NFT community is driving this forward, mainly on Discord.
Case Study: Dream Hollywood
The Dream Hollywood and Crypt Gallery launched an NFT art exhibit, the first of its kind. Curated by NYC-based NFT art collector King of Midtown, the gallery features a diverse lineup of digital and physical artists who specifically compose a limited number of pieces and editions. Live auctions are streamed from online marketplaces and limited-edition pieces of art are exclusively sold to attending guests at an affordable entry point (further on the theme of community and welcoming in new collectors).
Dream GM Vaughn Davis shared, “For NFT connoisseurs, avid art collectors, and even the newest fans of the medium, this exhibition is both provocative and informative. When a tech-forward physical gallery space merges with powerhouse digital collectors like King of Midtown and 33, magic happens.”
