Powered by blockchain, NFTs could increase branding opportunities

New Ideas in MarketingEssential news for marketers, summarised by YouGov
January 07, 2022, 3:08 AM UTC

Non-fungible tokens’ (NFTs) significance would increase in the metaverse, as they could be carried anywhere users go.

With NFTs and blockchain tech integrating 3D AR and VR landscapes, marketers could do well to set clear goals and expectations to benefit from the new tech. As the location data is recorded in a decentralised, public ledger, blockchains are more secure when it comes to protecting consumer data.

Providing consumers with a blockchain-based option for sharing data helps brands build trust. Since blockchains are transparent, decentralised, and secure, they can help businesses stop ad fraud and protect supply chains, notes Mel Bessaha, SVP of Demand, Connatix. NFTs offer brands an opportunity to create unique digital assets for their consumers, as NFTs use blockchain’s decentralised tech to warrant exclusivity.

However, brands must pick an ecologically friendly blockchain vendor, as blockchain technology consumes a lot of energy to manufacture and maintain. Marketers can “reimagine virtual experiences”, and effectively understand consumer behaviour, according to Sanjay Mehta, head of industry, e-commerce, of Lucidworks. To safeguard a brand's intellectual property rights, being cautious when distributing NFTs is recommended.

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