BizReport

RSS feed Get our RSS feed

News by Topic

BizReport : Content Marketing : October 11, 2021


How to use NFT to better engage

Monetizing - or tokenizing - content is not a new shift in the world of digital content or revenue. Non-Fungible Tokens (NFTs) do just that, but with an added, 'limited edition' significance that could influence more consumer to convert. Here's how merchants and brands can use NFTs to incentivize many different actions and reactions.

by Kristina Knight

Kristina: What is an NFT?

Rohan Sinha, CEO and Co-founder, Bubblehouse: An NFT is a way to tokenize a piece of digital content in a limited-edition fashion. So to keep it simple, it's a way to attach 'limited editionness' to anything. It could be art, music, or film, all the way to fashion pieces, land in games, to a concert ticket or limited-edition menu. Human beings love scarcity and limited-edition collectible items on an emotional level. NFTs allow a new economy around digital limited-edition collectibles of any kind to exist.

Kristina: Why do merchants need to start thinking about it?

Rohan: Creators and merchants should think about it because they can all form NFT economies around them and generate new revenue streams from this brewing cultural revolution. Currently, creators primarily make money through brand sponsorships on Instagram, or subscribing to content on Patreon / Twitch, or advertising on Youtube; NFT ownership sales are going to be a very significant complementary revenue stream for creators. A small sliver of creators are already making a lot of money on NFT sales, and it's going to spread to the mainstream world for both creation and collection.

Everyone's going to be able to express themselves through the NFTs they collect, just like we do with fashion and what we wear. We're all unique individuals who want to showcase who we are to the world around us, and just like how we buy a specific printed T-shirt to express our individuality, you'll collect an NFT to show what you like and who you are.

Kristina: What impact will NFT have on digital and physical commerce over the next 18-24 months?

Rohan: NFTs are going to create a new world of wealth for content creators in the digital and physical world. Every creator will have NFT economies around them that are creative and vary dramatically depending on what kind of creator they are. You already see the likes of Sotheby's and Christie's pouncing on NFTs for the highest value pieces, and it's going to be democratized in the mainstream world once we have the platform to enable it; a platform that doesn't require knowing how to navigate complex cryptocurrencies and crypto wallets, and makes the NFT experience community based and social. But even in the relatively small NFT community, August had over 3.5 billion USD of NFT trading volume. Imagine how big the market is going to be once NFTs hit the mainstream.

Kristina: What does an NFT world look like?

Rohan: We're all unique individuals who want to showcase who we are to the world around us, and just like we buy a specific jacket or piece of furniture to express our individuality, you'll collect an NFT to show what you like and who you are.

On the creator side, Creators are going to make money selling limited edition collectibles from art, music, film, and gaming assets to limited edition menus and cocktails you can experience if you own the NFTs to unlock them. There's a world of creativity and experiences that can be productized and tokenized by NFTs to be sold to consumers.

Creators are also going to have more visibility into their fan bases, since they can now separate the more loyal and dedicated fans based on how much they collect. Right now, creators don't have this visibility - someone either is a follower or they aren't. With NFTs, creators can identify and reward their most loyal fans with meet and greets, private events, pre-screenings, exclusive streams, and create a spectrum out of currently binary fan loyalty.

Kristina: What role do NFTs play in social media/social shopping?

Rohan: NFTs are an inherently social experience. A big part of owning NFTs is showing other people that you own it, so there needs to be a social space to enable the 'flexing'. We also want to know what our friends, favorite athletes, celebrities, and influencers are collecting too, which is all a new type of social engagement around ownership.

Another big part of NFTs is becoming part of exclusive social communities once you're a collector. So, if I collect from an illustrator that I like, I should be able to interact and get to know the other collectors who own this illustrator's NFTs, all in an exclusive community. You see this behavior already with private discords for Cryptopunk owners or Bored Ape owners, and these exclusive micro-communities should exist for all kinds of NFT creators. It's another type of exclusive social experience that ties in with the innate 'limited editionness' of NFTs, and it's going to enable millions of private communities to exist around NFT collection.






Tags: Bubblehouse, ecommerce, ecommerce trends, how to use NFTs, NFT tips, NFT trends, Non-Fungible Tokens








Subscribe to BizReport






https://www.bizreport.com/2021/10/how-to-use-nft-to-better-engage.html

 

 

Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.