NFT and cryptocurrency is not new for the folks in the digital marketing industry. In the last few years, we all have heard about the brands increasingly using NFTs and cryptocurrencies in their marketing strategies. It is not surprising because, according to a report, the transaction volume of the global NFT market reached $44.2 billion in 2021, and it keeps growing. But, we need to stop for a minute, take a deep breath and think about how these digital tokens and digital marketing are interconnected. We can begin with basic definitions to have an absolute perceptionPhoto Background Removing.
Now, What Is Cryptocurrency? It is a digital currency stored in a digital wallet and is usable and fungible like any other currency. In addition, cryptocurrencies are not unique, so you can trade or exchange them. On the other hand, NFT is an entirely different case. NFTs are non-fungible digital assets. One NFT has not an identical copy; each one is unique. They can be any creative work, such as virtual real estate, digital artwork, fashion, etc. It opens the door to the creativity of content creators and artists, so NFTs are limitless. The NFTs and cryptocurrencies are based on blockchain, so they are decentralized, independent of authorities and traditional financial institutions.
Well, but why are these tokens essential for digital marketing? 1. They build brand awareness by generating interest in your brand and increasing its visibility. Using NFTs as your marketing strategy expands your brand’s audience reach and enables you to access your target customers. Social media is the perfect channel to promote the tokens of your brand. 2. NFTs and cryptocurrencies strengthen customer loyalty. Personalization allows brands to create more intimate and intense relations with their customers. Ownership of an NFT enhances the customer’s commitment to your brand because it enables a direct and closer relationship between you. 3. They encourage customer interaction and community building. Your brand can raise the interaction by sustaining user-generated content. Besides, listening to suggestions from your community helps your brand consolidate your community and offers chances to create a marketing strategy compatible with your target. 4.