GUEST COLUMN: Understanding the role of NFTs in influencer marketing

GUEST COLUMN: Understanding the role of NFTs in influencer marketing

Madhavan explains how NFTs can be game-changers for digital content creators

Gautam Madhavan

Mumbai: Let’s start by understanding NFTs.

The acronym NFT stands for "non-fungible token." This signifies that it's a one-of-a-kind code that can't be substituted with anything else. An NFT is nothing more than a digital representation of a physical item. NFTs have monetary or sentimental worth and can be bought, sold, or traded. You can own them because they are digital assets. They are one-of-a-kind digital assets in the form of cryptographic tokens. Bitcoin tokens can be thought of as blockchain-verified dollar bills, and NFTs are works of art or other media files that have been confirmed on the blockchain.

In the digital realm, the possibilities are limitless. NFTs are a gamechanger for digital content creation since they allow creators to create and sell art, music, books, films, and more. Digital marketers and content providers can communicate with customers on social media, give them valuable assets such as giveaway prizes, and more.

How do NFTs impact influencers?

NFTs have the potential to establish a new universe of intellectual property with copyright income for content creators and influencer-generated material that attracts influencers and content creators. We've seen over the last decade that viral moments may provide a monetary profit for their creators. Memes, short videos, and products are all examples of this. It can be used as a possible revenue stream for a variety of people and businesses, ranging from professional sports leagues to artists and others, who can now sell the NFT behind their brands instead of having to negotiate a three- or five-year usage of their image.

Influencers can earn a lot of money, but their resources are limited. To make money, they rely on brand partnerships and collaborations. But NFTs change that by offering a completely new way to make revenue and improve marketing strategies. Because of its unique setup, the creator economy has enabled individuals to generate digital content using blockchain-based technologies, potentially altering the financial environment for the creators involved. They've made it possible for artists to make millions from just one piece of work. NFTs are being explored by creators as a means to deliver unique, paid experiences and communicate with their followers.

NFTs also have the potential to be sold in the future. They can be configured to allow royalties so that when an asset is sold on the NFT marketplaces, the developer receives a portion of future sales.

Naturally, the scope of influencers in the fields of lifestyle, fashion, and art is nearly endless. These influencers can sell exclusive content, such as digital art, while NFT ensures its validity and value. Influencers in the gaming industry are also getting involved, selling in-game weaponry and artifacts as NFTs.

As a prize, NFTs can boost engagement. Influencers can organise a campaign and give away NFTs, which have a lot of value for their followers. NFTs are also excellent prizes for collaboration posts and user-generated content contests, particularly if they include a memorable moment, exclusive material, or a digital collectible.

Moving Forward

NFTs aren't just the latest craze; they're digital assets that exist exclusively online yet have real-world value. We're getting more digitally oriented, and NFTs bring a popular activity, an investment possibility, and a status symbol into the digital realm. We like physical objects that we can hold and feel, but digital assets are the way of the future. Companies and influencers have a one-of-a-kind way to monetize online content and intellectual property, from unique digital art to a virtual baseball card to an unforgettable moment.

It is critical to recognise that NFTs do not pose a threat to brand-influencer partnerships. On the contrary, by employing NFTs as a newer form of technology that will allow them to drive innovation, they will be able to improve their collaborations and continue to expand their ties.

NFTs are popular because of their uniqueness and collectability. Creating products through limited partnerships between companies and influencers will be a whole new revenue source for both the brand and the influencer. Customers can gain access to a unique piece of the digital world with NFTs.

Today, marketers are using Livestream product launches and other experience sessions with influencers in the form of tutorials to create experiences that are exclusive. The digital and crypto worlds are sweeping the globe as new generations of customers become increasingly accustomed to them and see the enormous value of this type of transaction and investment.

(The author is CEO of Mad Influence, a social media marketing platform. The views expressed in this column are personal and may not subscribe to them.)