I am fascinated by the potential of NFT and the whole WEB3.0 concept. In a series of brief posts, I will be sharing my evolving understanding of their disruptive potential across industries.
In this article, I will focus on the emerging field of Crypto- Marketing and how it is changing the paradigms and forcing us to reassess some of our fundamental assumptions. Your comments and corrections will be most welcome.
First paradigm change of Crypto Marketing
On August 23rd, 2021, Visa purchased an NFT, a pointer to a 25X25 pixel CryptoPunk 7610 for marketing purposes. They paid 49,5 ETH, at the time $150k.
This bold move turned out to be a massive success; the publicity vastly outstripped the cost. Visa found a new authentic way to connect with consumers at Crypto/NFT Communities. ( estimated global crypto ownership rates at an average of 3.9%, with over 300 million crypto users worldwide in2021 ).
The campaign signaled growth in NFT adoption and positioned Visa as an early player in crypto marketing. Soon after, Adidas would buy a Crypto Ape.
(Next details paraphrase some of the brilliant comments on gmoney.eht twitter thread)
Visa paid 49,5 ETH, at the time $150k for it. In less than a week, the price was 127 EHT. Historically marketing has been a cost center; the money spent to promote is a sunk cost. This campaign became an asset on the balance sheet, and marketing became a profit center.
Second paradigm change of Crypto Marketing
Imagine Apple wants to sell a new iPhone and releases 1.000.000 APPLE VIP NFTs for promotion, free or at a marginal cost.
Anybody who gets (or pays for) those NFTs gets a benefit of some sort (discount, priority access, signaling you belong to an exclusive community... ).
That is instant community creation, without marketing these NFTs because the NFTs have built-in incentives mechanisms to spread. Holders have incentives to increase the perceived value of those NFTs in primary and secondary markets..). The concept of secondary markets for marketing at scale is hugely attractive for collections.
More importantly, this instant community creation means instant database creation—a self-organized and paying community of early adopters eager to interact with your brand.
Be aware that when you use your wallet to buy an Apple VIP NFT, that transaction will be public. Apple will know and can access and push information to all holders.
Anyone can access my wallet and review the public registry of my transactions, and they can profile the holder and push spam (Crypto Spam). Instead of emails, or banners, there is a new high precision, low-cost channel to interact with potential customers, your public key.
Unlike email, public keys are public and visible. You can send an unsolicited NFT to any wallet, and it would show as an ad in a Billboard.
This is just the beginning.
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This was originally posted on LinkedIn.
Disclaimer: The views expressed here are not those of OpenExO Inc., its members, affiliates, or associates. The content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult directly your own appropriate advisors and professionals as to those matters.
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