One of the hottest topics so far this year has been the rise of NFTs.
NFTs – or non-fungible tokens – can best be described as a digital token that be sold and traded on a blockchain.
Headlines about NFTs usually revolve around digital artworks being sold for a ridiculous sum of money, or sporting highlights being traded among investors.
We’re also now starting to see opportunities for brands to leverage the new technology. Coca-Cola enjoyed some success earlier this year when it shared a range of NFTs.
Another surprise to go with our NFTs. A real-life, retro Coca-Cola fridge! Made in Italy. Custom-made and stocked with ice-cold Coca-Cola to be shared with friends. https://t.co/SIJ0HnNfdu#smegusa #NFTcommunity #OpenSeaNFT pic.twitter.com/onCnYveOJw
— Coca-Cola (@CocaCola) July 30, 2021
According to Labrys CEO Lachlan Feeney, the rise of NFTs is not so much about these digital tokens, rather the technology they are traded on – blockchain.
“NFTs have actually been around for some time now, but have landed in a big way this year with businesses, and marketers in particular, for their ability to create value for digital assets – we call this the monetisation of culture,” Feeney told B&T.
“NFTs are really the tip of the iceberg for blockchain’s potential and are far from a passing craze.”
Blockchain technology has grown in popularity due to its ability to serve as a an incorruptible digital ledger, which can trace and report the entire lifecycle of a digital asset.
Feeney points to this as a reason for the immense success of cryptocurrencies such as Bitcoin.
Visa buys in
Visa attracted plenty of attention in August when it purchased CryptoPunk 7610 (one of the most popular NFTs) for around $US150,000.
For Feeney, Visa’s decision to get involved in the NFT game shows brands are taking the space seriously.
“Visa’s purchase of CryptoPunk 7610 is a huge statement in terms of brand credibility amongst the digital communities that engage with these assets,” he said.
“It’s one of the highest profile examples to date of a brand embedding itself into a digital community in a way that until now has been illusive. Brands have long understood the marketing power that comes from collectables and NFTs are ushering in a new digital era for this marketing strategy.
“The fact that Visa’s investment was reported to be around $US150,000 is a statement in itself as to the cultural influence these assets are going to have in our immediate future, and the opportunities they present for marketers.”
With skyrocketing prices and flashy digital designs, NFTs certainly represent the ‘sexy’ side of blockchain.
And while Visa and Coca-Cola are showing us that brands can get involved here, for most marketers, the true value of blockchain technologies will likely be far less exciting.
“So much of what is driving the rapid adoption of blockchain technology is trust and transparency,” Feeney said.
“That’s both in the data itself in terms of legitimacy and accuracy, but also in the way that it’s collected, stored and used.”
He pointed to the example of the Brave browser (an alternative to Chrome and Firefox) and its use of the ‘Basic Attention Token’, which is designed to pay publishers for their content and users for their attention.
While ads are blocked on Brave, users can choose whether they are visible and can be paid in Basic Attention Tokens (which can then be cashed out) for their engagement.
“The system is very privacy focussed and is a response from the blockchain industry to hand ownership of data back to the user, whereas currently user data has been viewed by the tech providers as a kind of payment for using the service,” said Feeney.
It’s just one example of how blockchain technology can put data ownership back in the hand’s of users.
“The blockchain approach is very much, you own your data, and if you want to submit that record to a public, decentralised blockchain, that sits in the public realm rather than a company server, we’ll pay you to access information that you own,” Feeney said.
“It flips the entrenched paradigm.”
As more brands and organisations start to move towards these sorts of systems, Feeney believes digital advertising’s data-hungry reputation can be reversed.
“These are completely new parameters for the marketing industry to operate in, and go some way towards addressing the reputational impacts that the industry has sometimes suffered from bad personalised marketing efforts,” he said.
Hayley Fisher [pictured] is the AUNZ Country Manager at Adyen. In this op-ed, she discusses the upcoming holidays sales season and explains marketers can help drive sales. Over the 18-months the pace of ecommerce has accelerated to new heights. According to latest figures from the Australian Bureau of Statistics (ABS), a record $44.2 billion was […]
TPG Telecom has announced it will hold a creative pitch to further develop the Vodafone brand here in Australia. Last year’s merger between Vodafone and TPG brought together a family of brands under the TPG Telecom group, with the creative shift to position Vodafone for the future. While Vodafone’s long-standing relationship with WPP will continue, […]
Following 18 months of intermittent lockdowns across Australia, shopping centre giant Westfield is launching a new service that will tap into the ecommerce boom. The new service, named Westfield Direct, will take on the likes of Australia Post by providing shipping directly to customers. Shoppers will also be able to select items from an online […]
SBS has been recognised as one of Australia and New Zealand’s Most Innovative Companies, in the prestigious annual list published by the Australian Financial Review and Boss Magazine, from over 700 nominated organisations. Ranked third on the Media and Marketing list, SBS was the only media company to make the list, recognised for its growing and evolving multilingual digital services, exemplifying SBS’s innovative culture and strategy. SBS provides multiplatform services in more than […]
Twitter has confirmed it is experimenting with a new ad format which will see ads placed within conversation threads for the first time. The company’s Revenue Product Lead Bruce Falck made the announcement on Thursday. “Starting today, we’re trying something different and testing a new ad format in Tweet conversations,” he posted on Twitter. “If […]
In exciting news today, Mushroom Group is thrilled to announce much lauded Aussie music program The Sound will return to the ABC this November! Celebrating some of our best musical talents since its launch in 2020, The Sound Season 3 will debut on Sunday 7 November at 5.30pm (local time). Viewers can watch The Sound on ABC TV each Sunday afternoon or catch up with the latest episodes via ABC iview. Across Season […]
Strategic design and innovation company AKQA has received the top industry ranking in the 2021 AFR Boss Most Innovative Companies List. This is the third consecutive year the company has been acknowledged by the AFR for its commitment to innovation in the media and marketing category. The Most Innovative Companies Awards were presented via a […]
National news brand, The Australian, has launched a new podcast from Hedley Thomas, Shandee’s Story. Shandee’s Story is the culmination of six months’ work by Thomas, the award-winning investigative journalist behind The Teacher’s Pet and The Night Driver podcasts. The podcast investigates a harrowing cold case. Shandee Blackburn was left to die after a frenzied knife attack as she walked […]
Greater Bank has won a Silver Award at the 2021 Step Two Intranet & Digital Workplace Awards with its Intranet Built on the Elcom Digital Employee Experience Platform. The global awards recognise outstanding contributions to the fields of intranets and digital workplaces, honouring remarkable solutions that deliver business value to their organisations and then share […]
Two new research reports have revealed key drivers for ‘commerce content’ and the massive revenue opportunity it presents for digital publishers and brands. Published by independent media organisations, commerce content allows readers to understand the goods and services promoted by an editorial team. It’s now a major part of the partnership ecosystem, and a way […]