Making sense of NFTs
NFTs (non-fungible tokens) have recently gained notoriety as an accessible way to buy and sell digital art.
An alternative path for expressing your brand
NFTs, a form of digitally produced and blockchain based art, feels like the defining cultural trend of the past year, generating a total of $5.4 billion in profits through sales of the tokens in 2021.1 Despite all the publicity, the space still feels like it is mostly for insiders: gamers, investors, and luxury brands. As such, Ipsos investigated the world of NFTs. We have gone on the journey of creating (aka minting) an NFT. Our research shows that NFTs have opened new possibilities for brand storytelling, and that engaging NFT communities is a creative, yet more risk-averse way to help brands tap into the phenomenon and play in the space. In this report, we present learnings designed to empower brands across many categories, with insights on how to innovatively engage with consumers and shape new brand narratives. By engaging the community of investors around specific NFT collections, NFTs hold the possibility for brands to augment consumer interaction as well as brand storytelling.
Recommendations for brands looking to move forward in this space
- Understand your brand and what it might be missing. Consider partnerships with NFT communities as a partnership like any other: as a way to refresh your brand with new marketing opportunities and initiatives.
- Start diving into the NFT world with an eye toward the community itself and its identity: Find an NFT collective that can help play out aspects of your brand, or complement your brand in new ways.
- Be creative in thinking about how to use it: is it a new place for understanding your audience? Is it a collective that can be a potential partner? Is there an option to sponsor a collective?
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