It isn’t just consumers who are being affected by inflation and the 2022 economic downturn. Marketers are starting to feel the shift, too. Marketers are in an especially challenging position, because on the one hand, how are you supposed to engage consumers who may be cutting costs?
On the other hand, what is the best way to proceed when your job may be on the line, too?
The answer may be something that you’ve overlooked in favor of tried and true marketing campaigns. Instead of relying on old faithful, marketers need to embrace change and embrace the possibilities that Web3 can offer.
In this blog, we’re going to explore how you can use NFTs for marketing in a recession, and why you really ought to embrace the new in order to amplify your old marketing strategies.
Hi there! Remember me?
If you remember 2008, the decline in economic activity wasn’t felt right away. It was a slow and creeping thing that blindsided our country when we finally realized what was happening.
After 2020, we knew it was only a matter of time before we found ourselves in this situation again. For anyone who was old enough to remember 2008 and wall street constantly making headlines, this recession was echoing for two years before finally rearing its ugly head.
After the lockdowns that swept the globe in April 2020, and the subsequent interruptions to industrial production, the supply chain delays, shortages in the labor market, and the halt in our economic growth, it sucks to have to say hello to an old enemy.
The recession is here, and it’s up to us as marketers to try and engage our existing customers and future prospects while still being sensitive to the fact that they may be financially suffering. So, how can you create brand awareness without hurting your marketing budget?
NFTs may be the perfect solution for this problem.
What is an NFT?
NFTs, or non-fungible tokens, are digital assets that are created using blockchain technology. One of the more appealing things about them is that they are literally one of a kind, hence the word non-fungible.
Unlike cryptocurrency which is fungible, NFTs cannot be replicated.
NFTs are as unique as your fingerprints, unreplicable, and refreshingly progressive. The difference between NFTs and traditional fine art is that NFTs are accessible to everyone because almost anything can be an NFT.
From GIFs and digital paintings to videos, music, and kid’s scribbles. Entire VR retail spaces and gaming suits can also be sold as NFTs. The list goes on.
While people used to roll their eyes at the ones who bought them in the early days, the market is expected to grow to $147 billion by 2026. To put that into perspective, that’s more than the fine arts market.
The best part for marketers is that you can use NFTs any way that you want. Let’s dive into some great ideas that you can use when marketing with NFTs.
How to use NFTs for marketing.
One thing to consider is that brands use their NFTs for a specific reason when using them for marketing.
Before deciding what your NFT drop will be or planning your marketing strategy, you need to identify your brand’s goals. If you just want to drop a collection because it’s the cool thing to do right now, you won’t get very far.
Well-known NFT artists can do that. Brands, on the other hand, need a purpose to make the biggest impact and generate engagement.
Make sure that your NFT drop serves a purpose and you’re already ahead of your competition.
Ask yourself: Who are you targeting and why do you want to use NFTs to target them?
Why NFTs help marketers during a recession.
The hardest part about a recession for marketers is the shift away from traditional marketing and digital marketing strategies, to finding new ways to engage consumers who aren’t spending. Marketing during a recession is about engagement and awareness, not necessarily generating sales.
Companies should expect to see a downturn in sales, that’s a given, but it’s important to make sure that you are standing out among your competitors. When those consumers are ready to buy, you want them to turn to you.
Sure, great content marketing and a solid social media strategy are great for this purpose, but not when your competitors are doing the same exact thing.
NFTs give marketers that extra edge, and are their own form of ROI.
You might be wondering why consumers would spend on NFTs when inflation is rampant and the federal reserve is making headlines day in and day out. Well, the answer is simple. NFTs are considered an investment where a new sweater or a new pair of shoes is a vanity buy.
NFT ideas for brands.
The rise of the NFT has given brands a powerful tool to wield, but the key to success for brands in the NFT world is to design with a purpose.
Gamification: A great approach for your NFT campaign is to try gamifying digital artwork and encourage your base to collect limited-release trading cards. In exchange, your customer has access to exclusive offers like exclusive sales.
Philanthropy: Embrace your charitable side by dropping an NFT collection for charity. Partner with a well known NFT artist, or hire an NFT graphic designer to design a collection that people will flock to.
Taco Bell and Charmin dropped great examples of charitable NFT campaigns
Custom engagement: While NFTs are collectible, one cool thing that you can do is to allow consumers to customize their own NFTs. A great example of this is Nike’s CryptoKicks campaign.
While there is nothing simple about this campaign, it has served its purpose by allowing consumers to create their own custom pair of shoes.
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Although these shoes are digital artworks that can’t physically be worn, it hasn’t stopped some people from spending upwards of $130,000 for one pair.
The point of using NFTs for your marketing campaign isn’t necessarily to generate immediate revenue, it’s about positioning your brand as future-proof while engaging your target audience on a whole new level.
Embrace the future.
Brands are making waves in the NFT space and they’re showing us that anything is possible. Dropping your own NFT collection is an inexpensive way to engage your audience while embracing the possibilities of the future.
Let’s kick this recession to the curb and define what it means to be recession marketers. The answer lies in embracing the new over the tried and true.
Have you ever used NFTs for your marketing campaign? Let us know in the comments!
