{"id":12644,"date":"2022-03-10T19:00:35","date_gmt":"2022-03-10T19:00:35","guid":{"rendered":"https:\/\/jboitnott.com\/?p=12644"},"modified":"2022-03-20T17:57:24","modified_gmt":"2022-03-20T17:57:24","slug":"nfts-and-your-brand-when-and-how-to-explore-new-channels","status":"publish","type":"post","link":"https:\/\/jboitnott.com\/zh\/nfts-and-your-brand-when-and-how-to-explore-new-channels\/","title":{"rendered":"NFTs and Your Brand: When and How to Explore New Channels"},"content":{"rendered":"<p class=\"graf graf--p\">NFTs and other evolving types of\u200a\u2014\u200awell, OK, let\u2019s call them \u201cchannels\u201d\u200a\u2014\u200amay be an area your brand wants to invest in, but might also not be the smartest idea. Whether you\u2019re evaluating the benefits of creating your own brand\u2019s NFT now or jumping into any new <a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/www.clearvoice.com\/blog\/create-content-marketing-strategy-social\/\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/www.clearvoice.com\/blog\/create-content-marketing-strategy-social\/\">marketing channel or strategy<\/a> that develops in the future, you need a framework to make a quick yet still informed decision.<\/p>\n<p class=\"graf graf--p\">Take advantage of the possibilities offered by a new channel or marketing strategy while minimizing the risks. Try following a fairly straightforward formula, tailored to your own unique circumstances:<\/p>\n<ul class=\"postList\">\n<li class=\"graf graf--li\"><strong class=\"markup--strong markup--li-strong\">Do your research<\/strong>: Identify the nature of the new channel and how it operates. Learn the basics of the new channel\u2019s foundation. Do this whether that\u2019s a new technology, business model, audience, or a different set of operating rules.<\/li>\n<li class=\"graf graf--li\"><strong class=\"markup--strong markup--li-strong\">Evaluate the drawbacks<\/strong>: Each new strategy or channel will pose a set of drawbacks and someone will have to bear the cost of those drawbacks, whether individually (as in the case of added legal or financial risk) or societally (as with environmental damage or societal costs of misinformation).<\/li>\n<li class=\"graf graf--li\"><strong class=\"markup--strong markup--li-strong\">Outline the advantages<\/strong>: What good can possibly flow from your investment into or adoption of this new channel or strategy? List out those benefits, both tangible and intangible.<\/li>\n<li class=\"graf graf--li\"><strong class=\"markup--strong markup--li-strong\">Perform a risk assessment<\/strong>: Evaluate the potential worst-case scenarios and what each would mean to your brand. Balance the drawbacks against the advantages to get a good picture of what you\u2019re likely to face no matter what the outcome turns out to be.<\/li>\n<\/ul>\n<h2 class=\"graf graf--h3\">How three brands got creative with\u00a0NFTs<\/h2>\n<p class=\"graf graf--p\">Before you can execute on an idea, you need to actually have a solid idea in the first place, right? But how do you get from a wholly new thing like NFTs or a completely new social platform to a value-added way to integrate it into your marketing plan?<\/p>\n<p class=\"graf graf--p\">Let\u2019s take a look at NFTs as an example of how you can creatively put new concepts into play to promote your brand. As you can tell from the following three use cases, NFTs have been used as charitable fundraisers and as more straightforward promotions.<\/p>\n<h3 class=\"graf graf--h3\">1. Taco\u00a0Bell<\/h3>\n<p class=\"graf graf--p\">In March 2021, Taco Bell <a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/twitter.com\/tacobell\/status\/1368807880434982912\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/twitter.com\/tacobell\/status\/1368807880434982912\">announced on Twitter<\/a> that it would offer NFTs based on taco-themed GIFs and graphics. Using the NFT marketplace <a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/rarible.com\/\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/rarible.com\/\">Rarible<\/a>, it sold all available 25 NFTs in less than an hour. For the original owner, the fast-food chain also had a $500 gift card. And, all proceeds were directed to its foundation to fund the Live M\u00e1s scholarship.<\/p>\n<h3 class=\"graf graf--h3\">2. Pizza\u00a0Hut<\/h3>\n<p class=\"graf graf--p\">Also in March 2021, Pizza Hut Canada offered the first \u201cNFP\u201d\u200a\u2014\u200athat\u2019s non-fungible pizza, of course\u200a\u2014\u200ain a collection of \u201c1 Byte Favorites\u201d on Rarible. The pizza chain took a delayed-drop approach to the release of these NFTs of some of its top-rated recipes, dropping a few each day to create more interest. The collection was designed to promote the restaurant\u2019s $10 Favorites promotional campaign.<\/p>\n<h3 class=\"graf graf--h3\">3. Campbell\u2019s Soup<\/h3>\n<p class=\"graf graf--p\">In the summer of 2021, <a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/www.campbellsoupcompany.com\/newsroom\/press-releases\/campbells-commissions-first-official-nft-collection-by-artist-sophia-chang-to-celebrate-changes-to-its-iconic-soup-can-labels\/\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/www.campbellsoupcompany.com\/newsroom\/press-releases\/campbells-commissions-first-official-nft-collection-by-artist-sophia-chang-to-celebrate-changes-to-its-iconic-soup-can-labels\/\">Campbell\u2019s Soup announced<\/a> a new venture in which it planned to partner with artist Sophia Chang to create NFTs celebrating its iconic red, white and gold soup can labels. The collection included 100 NFTs designed by Chang based on the label art and was available for purchase via <a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/thentwrk.com\/\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/thentwrk.com\/\">NTWRK<\/a>, a video shopping platform well known for handling sales of NFTs. In the same way Taco Bell did, Campbell\u2019s also turned the venture into a charitable act. They directed all proceeds to Feeding America to fight food insecurity.<\/p>\n<h2 class=\"graf graf--h3\">What\u2019s an NFT\u00a0anyway?<\/h2>\n<p class=\"graf graf--p\">NFT stands for non-fungible token. That probably doesn\u2019t do much to illuminate the nature and value of an NFT, though, so let\u2019s break it down a bit further.<\/p>\n<p class=\"graf graf--p\">Non-fungible simply means that it\u2019s one of a kind. It can\u2019t be reproduced or traded with others of its kind and still maintain its intrinsic value. For example, if I have a $10 bill, and you have two $5 bills, we can make a fair and equal trade. After we exchange our respective notes, we still have the value of what we started out with. The same is true of bitcoin or Ether units.<\/p>\n<p class=\"graf graf--p\">But that\u2019s not true of other types of property, such as artwork. If I have a Degas painting and you have a Jackson Pollock (or even a different Degas!), we can certainly trade our pieces but we won\u2019t end up in the same situation as before the trade. One isn\u2019t the same as another.<\/p>\n<p class=\"graf graf--p\">Token, in this context, means that this non-fungible asset\u200a\u2014\u200athe artwork, for example, or a digital asset like a graphics file or a tweet\u200a\u2014\u200ahas been reduced to a digital form that can be easily bought, sold, or otherwise traded. Tokenizing is a key part of what makes cryptocurrencies tradable while the use of blockchain technology reduces the risk for fraud.<\/p>\n<h2 class=\"graf graf--h3\">Examples of\u00a0NFTs<\/h2>\n<p class=\"graf graf--p\">What can be turned into an NFT? So many things. Consider these examples:<\/p>\n<ul class=\"postList\">\n<li class=\"graf graf--li\">Remember Jack Dorsey\u2019s very first tweet on Twitter? He recently sold it for <a class=\"markup--anchor markup--li-anchor\" href=\"https:\/\/v.cent.co\/tweet\/20\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/v.cent.co\/tweet\/20\">almost $3 million<\/a> as an NFT.<\/li>\n<li class=\"graf graf--li\">In an auction run by Christie\u2019s, graphic designer and artist Beeple sold a compilation of daily images dating back to 2007 for <a class=\"markup--anchor markup--li-anchor\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-03-12\/crypto-investor-is-buyer-of-beeple-nft-in-christies-digital-art-auction\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-03-12\/crypto-investor-is-buyer-of-beeple-nft-in-christies-digital-art-auction\">a mind-blowing $69 million<\/a> to a Singapore cryptocurrency investor.<\/li>\n<li class=\"graf graf--li\">Musician Grimes sold an NFT of <a class=\"markup--anchor markup--li-anchor\" href=\"https:\/\/niftygateway.com\/itemdetail\/primary\/0x948b3515d81034a3c16d5393c6c155946c93c103\/1\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/niftygateway.com\/itemdetail\/primary\/0x948b3515d81034a3c16d5393c6c155946c93c103\/1\">a short video<\/a> for over $300,000.<\/li>\n<\/ul>\n<p class=\"graf graf--p\">So, therefore, the underlying purpose of the NFT structure can vary. In one primary use case, brands and owners can use the NFT process to reduce a physical, real-life asset into something digital yet still secure enough to trade.<\/p>\n<p class=\"graf graf--p\">However, don\u2019t confuse an NFT with any run-of-the-mill digital file. Sure, you can right-click on any image or download any video and you\u2019ll technically \u201chave\u201d it through possession. But it\u2019s not the same as purchasing an NFT because downloading digital files doesn\u2019t transfer ownership.<\/p>\n<p class=\"graf graf--p\">For an analogous example, consider printing off a digital image file of a Degas painting. That\u2019s not the same as actually purchasing the Degas painting itself, nor does it transfer any rights of ownership as buying the artwork would.<\/p>\n<h2 class=\"graf graf--h3\">Where blockchain comes\u00a0in<\/h2>\n<p class=\"graf graf--p\">The <a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/www.clearvoice.com\/blog\/bitcoin-blockchain-content-marketing-how-they-connect-why-it-matters\/\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/www.clearvoice.com\/blog\/bitcoin-blockchain-content-marketing-how-they-connect-why-it-matters\/\">blockchain technology<\/a> involved in NFTs serves to create and bestow a unique identifier on the NFT, making it unique and less susceptible to fraud. As a digital representation of some other kind of asset or property, it must be unique in order to convey some kind of value in owning it.<\/p>\n<p class=\"graf graf--p\">NFTs are also \u201cextensible.\u201d This simply means you can use two NFTs to create yet another, third NFT that\u2019s wholly unique from the others.<\/p>\n<p class=\"graf graf--p\">Thanks to the security offered by the use of blockchain technology, NFTs have also been used in more serious business transactions, such as real estate deals and transfers of private equity holding. Parties to these transactions can also combine various NFTs into one deal, all backed by the security of blockchain. They\u2019re also used to support trading of collectibles as well as transactions of <a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/protos.com\/eiffel-tower-nft-ethereum-opensea-cheap-knockoffs\/\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/protos.com\/eiffel-tower-nft-ethereum-opensea-cheap-knockoffs\/\">digital property in the metaverse<\/a>.<\/p>\n<p class=\"graf graf--p\">So blockchain helps reinforce trust by making NFTs identifiable and that, in turn, helps make assets more easily traded, sold, and bought. This results in a more efficient market by removing the middlemen and agents, which leads to more accurate pricing as well as higher security in the transaction itself.<\/p>\n<h2 class=\"graf graf--h3\">Drawbacks of\u00a0NFTs<\/h2>\n<p class=\"graf graf--p\">If NFTs make it simpler and safer to deal, trade, and own all kinds of property and art, both digital and analog, then what are the drawbacks? Why isn\u2019t everyone dealing exclusively in NFTs? And why were so many media outlets claiming <a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/protos.com\/nft-market-bubble-popped-crypto-collectibles-are-over\/\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/protos.com\/nft-market-bubble-popped-crypto-collectibles-are-over\/\">the NFT boom went bust<\/a> last year?<\/p>\n<p class=\"graf graf--p\">To start with the drawbacks, there\u2019s the <a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/brightly.eco\/environmental-impact-nfts\/\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/brightly.eco\/environmental-impact-nfts\/\">potential environmental damage<\/a> caused by the process of mining the cryptocurrency used to buy NFTs. That process results in greatly elevated releases of carbon dioxide That leads to a hotter planet and a higher degree of climate change. Some but most likely not all of those emissions may be offset by investments in carbon recapture technology and other methodologies. That may not be a controversy you want your <a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/www.clearvoice.com\/blog\/examining-the-socially-responsible-social-campaign\/\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/www.clearvoice.com\/blog\/examining-the-socially-responsible-social-campaign\/\">socially conscious brand<\/a> to wade into.<\/p>\n<p class=\"graf graf--p\">NFTs also carry a somewhat questionable intrinsic or resale value. Of course, that\u2019s true of any piece of fine art, too. You might pay $100,000 at an auction for that Degas sketch but will it have increased in value when you sell it again 10 years down the road? An NFT\u2019s value may vary wildly over time. Many artists and traders think that won\u2019t happen\u200a\u2014\u200athat the value will only increase\u200a\u2014\u200abut others believe <a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/www.fool.com\/investing\/2021\/10\/20\/why-1-investor-believes-most-nfts-will-lose-value\/\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/www.fool.com\/investing\/2021\/10\/20\/why-1-investor-believes-most-nfts-will-lose-value\/\">the exact opposite<\/a> is more likely.<\/p>\n<p class=\"graf graf--p\">Finally, the market for NFTs is still fairly immature and volatile. You might find several ready and willing buyers who will pay top value for your NFT when you\u2019re ready to sell\u200a\u2014\u200aor you might not, as evidenced by that mini-bust in 2021. Most people still don\u2019t understand NFTs and its underlying technology well, and confusion can lead to bad trades or reluctance.<\/p>\n<h2 class=\"graf graf--h3\">What\u2019s so great about investing in a new\u00a0channel?<\/h2>\n<p class=\"graf graf--p\">Given the potential risks, why would anyone want to embrace a new channel as an early adopter?<\/p>\n<p class=\"graf graf--p\">First and foremost, expanding your channels helps you <a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/www.clearvoice.com\/blog\/impressions-vs-reach-vs-engagement\/\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/www.clearvoice.com\/blog\/impressions-vs-reach-vs-engagement\/\">broaden your reach<\/a>. Depending on any single channel too much is a dangerous thing. Not everyone in your target audience segments will naturally participate in a specific channel. The more you diversify your efforts, the likelier you are to reach more of the different customer personas you\u2019re targeting. Diversification into new channels helps you build a more solid marketing foundation and reduces the negative impact should the unexpected occur with another channel you rely on.<\/p>\n<p class=\"graf graf--p\">There\u2019s also the intrinsic value of more <a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/www.clearvoice.com\/blog\/marketing-data\/\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/www.clearvoice.com\/blog\/marketing-data\/\">access to new data<\/a>. Any time you branch out into new marketing strategies and channels, you produce or gain access to data that you otherwise wouldn\u2019t have. Whether the new channel or strategy works or not, you\u2019ll learn something new about your targeted audience. When you know more about the individuals in your market, you can better connect with them and help convert them into paying customers or repeat business.<\/p>\n<p class=\"graf graf--p\">Finally, don\u2019t discount the early adopter legitimacy bump. Being one of the first brands to use a new channel or strategy carries a certain cachet, especially if you do it well. This can lead to gaining some momentum that could even follow your brand outside of that channel\u200a\u2014\u200aleading to more Instagram or Twitter followers, for example.<\/p>\n<h2 class=\"graf graf--h3\">Evaluate the next new thing carefully before you\u00a0leap<\/h2>\n<p class=\"graf graf--p\">The bottom line is that whatever new channel you\u2019re considering will carry both potential risks and rewards. The essential question in deciding whether to become an early adopter of NFTs or other new marketing strategies and channels is to accurately estimate your ROI. Of course, before you can determine your return on investment, you must also know what you\u2019ll be required to invest, so first estimate your jumping-in costs, in terms of money, effort, skill sets, and opportunities you\u2019d have to forego.<\/p>\n<p class=\"graf graf--p\">The answer will also depend on your business model and goals. The perspective of an artist or other type of creator will most likely differ from that of a larger B2B brand and will definitely result in a different set of costs and potential benefits.<\/p>\n<p><strong><em>Thanks for reading! Do you want to create thought leadership articles like the one above? If you struggle to translate your ideas into content that will help build credibility and influence others, sign up to get John\u2019s latest online course \u201c<a href=\"https:\/\/jboitnott.com\/zh\/writing-from-your-voice-course\/\">Writing From Your Voice<\/a>\u201d here.<\/em><\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>NFTs and other evolving types of\u200a\u2014\u200awell, OK, let\u2019s call them \u201cchannels\u201d\u200a\u2014\u200amay be an area your brand wants to invest in, but might also not be the smartest idea. Whether you\u2019re evaluating the benefits of creating your own brand\u2019s NFT now or jumping into any new marketing channel or strategy that develops in the future, you [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12649,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1012],"tags":[863,708,171,1013,1014],"class_list":["post-12644","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nft","tag-brand-image","tag-digital-marketing","tag-marketing","tag-nft","tag-taco-bell"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>NFTs and Your Brand: When and How to Explore New Channels - John Boitnott<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.clearvoice.com\/blog\/nfts-and-your-brand\/\" \/>\n<meta property=\"og:locale\" content=\"zh_CN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NFTs and Your Brand: When and How to Explore New Channels - John Boitnott\" \/>\n<meta property=\"og:description\" content=\"NFTs and other evolving types of\u200a\u2014\u200awell, OK, let\u2019s call them \u201cchannels\u201d\u200a\u2014\u200amay be an area your brand wants to invest in, but might also not be the smartest idea. 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