What marketing opportunities do NFTs offer for building fan relationships?

NFTs. Maybe you've heard of them, maybe you haven't. We explain more about what exactly NFTs are in this article. And you'll find out right away why so many people and organizations have shown an interest in NFTs in the meantime.

The abbreviation "NFT" stands for "Non-Fungible Token. "Non-Fungible" means that it is unique and there is no alternative to replace it. As proof of this uniqueness, you get a "Token." And these tokens are registered in a blockchain, giving them their value.

The new Mona Lisa is a digital file

The unique nature of an NFT makes it excellent for creating scarcity for digital art. But how does that work? In the analog world, people have long been accustomed to scarcity. After all, there is only one Mona Lisa or one autographed shirt of a particular soccer player during a particular game. A replica is worth less. But in the digital world, everything is copyable. After all, you can stream a song infinitely and a digital photo is shared on social media in unlimited numbers. By registering a digital file as NFT (for example, number 001 of a photo or video), the file becomes unique, creating scarcity, and thus the digital file also gains its value. Just as we have been used to in the analog world for some time.

Exactly what the value will be, time will tell. Just as it does with analog art. However, organizations can already assign additional benefits (and thus additional value) to an NFT in the short term. For example, purchasing an NFT version of a Kings of Leon album entitles you to a front row seat at a concert and access to additional content.

NFT adds value for athletes and artists

Even DJ Don Diablo, and none other than soccer player Lionel Messi are deploying NFTs as a new revenue model. So it seems that the entertainment and sports world is embracing this blockchain solution.

Not yet convinced about NFTs and their added value? Then be sure to read these examples:

American artist Mike Winkelmann, aka Beeple, was the first to put a digital artwork like NFT up for sale. He did so through a traditional auction house, Christies. And it was not without merit. The artwork fetched some 58 million euros;
In just four minutes, Don Diablo sold the film of a digital concert (Destination Hexagonia) as an NFT for 600 Ether, equivalent to about $1.8 million (exchange rate at the time, ed.);
PSG acquisition Lionel Messi will release three to four NFTs this month, giving fans access to the "Messiverse. Perhaps a consolation prize for the Catalan club that could no longer afford the striker.

Optimize your fan relationship with NFTs

By the way, it is important to realize that NFTs are primarily a way to optimize the fan relationship and increase the perception of fans for your brand or personality. A good relationship ultimately determines whether you emerge as the winner or loser in the relationship economy. Organize your contact with fans smarter, and your NFT will automatically become more valuable.

Want to learn more about NFTs? Get access to the replay of the "Next Level Talk" webinar from Sept. 7, 2021, where the "Godfather of Content Marketing" Joe Pulizzi talked more about the future of NFTs and Content Marketing.

(In this post, I used portions from articles by my colleague Denis Doeland.)