Beneath The Blockchain: Why Brands Are Getting Involved In NFTs

Beneath The Blockchain: Why Brands Are Getting Involved In NFTs

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.

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.”

Going deeper

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.

 




Please login with linkedin to comment

Blockchain NFT

Latest News

A close-up on an abstract design of a display, which is warning about a cyber attack. Multiple rows of hexadecimal code are interrupted by red glowing warnings and single character exclamation marks. The image can represent a variety of threats in the digital world: data theft, data leak, security breach, intrusion, etc...
  • Marketing

Study: Invest In Customer Experience After A Data Breach To Future-Proof Your Brand

New research has revealed that businesses are not acting quickly enough to preserve customer trust following a data breach, and that failure to effectively engage customers in a way that matches their expectations will result in irreparable long-term damage to brand reputation. Porter Novelli Australia, in partnership with Quantum Market Research, has conducted research to […]

Kendall’s Horror Pepsi Ad Tops List Of Most Controversial US Ads Of All Time!
  • Campaigns

Kendall’s Horror Pepsi Ad Tops List Of Most Controversial US Ads Of All Time!

New research has revealed the most controversial TV commercials which have sparked outrage across the US, with big names such as Pepsi and Dove making the list.   The findings, compiled by journey advertising platform illumin also includes a new ranking that identifies which states have made the most complaints about TV commercials over the past […]

by B&T Magazine

B&T Magazine
Guinness Compared To A Cosmic Phenomena As Beer Brand Taps The Chinese Market
  • Campaigns

Guinness Compared To A Cosmic Phenomena As Beer Brand Taps The Chinese Market

Creative agency FRED & FARID Shanghai has partnered with the international brand Guinness to make a mark on the Chinese market by envisioning and developing “A Whole Universe” – a visual odyssey honouring one of the most iconic beers. There are briefs that one cannot turn down, like the one to introduce the most iconic […]

The Chaser’s Craig Reucassel To Host ABC Breakfast Radio, Valentine Returns To Afternoons
  • Media

The Chaser’s Craig Reucassel To Host ABC Breakfast Radio, Valentine Returns To Afternoons

Craig Reucassel (left) of The Chaser and dear friend of B&T, will take over hosting duties on ABC Sydney breakfast radio, with James Valentine returning to afternoons and Indira Naidoo handing over control of her evening show to producer Renee Krosch. Reucassel has produced three seasons of War on Waste for ABC TV since 2017 and last […]

Tyreright Appoints 27 Degrees Media
  • Marketing

Tyreright Appoints 27 Degrees Media

New-generation media agency 27 Degrees Media has been appointed to manage digital media for national tyre retailer Tyreright in one of its first Australian client signings. Lead Image: Loan Morris – 27 Degrees Media CEO Under the partnership, 27 Degrees Media will be responsible for all digital media strategy, planning and buying, along with influencer […]

The Works Distills “Question Everything” For Archie Rose Distilling Co.
  • Campaigns

The Works Distills “Question Everything” For Archie Rose Distilling Co.

The Works has announced the launch of ‘Question Everything’ a new brand platform and campaign for their newest client, Archie Rose. As a nine-year-old independently owned and operated Australian multi-spirit distillery, Archie Rose has garnered a devoted following among existing customers, with a reputation primarily built on white spirits – particularly gin. However in line […]

farsiight Unveils New Market Positioning Putting Growth for Good Over Growth At All Costs
  • Marketing

farsiight Unveils New Market Positioning Putting Growth for Good Over Growth At All Costs

Brisbane performance agency farsiight has announced the launch of its new market positioning, Growth for Good, in response to a changing business landscape, marking a departure from a “growth at all costs” mentality that has defined the industry in recent years. Agency founders and brother duo, Josh and Ben Somerville, envision Growth for Good as […]

By Land Or By Sea: GoTransit Offers Options Galore For Transit Advertisers In Newcastle
  • Advertising

By Land Or By Sea: GoTransit Offers Options Galore For Transit Advertisers In Newcastle

Australia’s largest privately owned transit media supplier, GoTransit Media Group, now offers unprecedented options for transit advertising in Newcastle – on both land and sea following their successful tender to supply interior advertising inside the popular Stockton Ferries. The national transit media company is already well acquainted with the thriving NSW market, having successfully operated […]

‘People First Bank’ Heritage & People’s Choice Bank Unified
  • Marketing

‘People First Bank’ Heritage & People’s Choice Bank Unified

Heritage and People’s Choice have launched People First Bank, the new name for positive change in banking Australia’s largest customer-owned bank has unveiled its new brand, announcing that Heritage and People’s Choice will be unified under the new name of People First Bank. Chairman Michael Cameron said the highly anticipated new brand offered a compelling […]

L’Oréal Aus & NZ Partner With Great Barrier Reef Foundation, Announcing Large Investments
  • Marketing

L’Oréal Aus & NZ Partner With Great Barrier Reef Foundation, Announcing Large Investments

L’Oréal Groupe Australia and New Zealand have announced one of the largest investments to the Great Barrier Reef Foundation to pioneer new coral restoration efforts in the region. L’Oréal Groupe Australia and New Zealand have announced today a new partnership with the Great Barrier Reef Foundation (GBRF), to help coral reefs withstand the devastating impacts […]

Media.Monks Names Matthew Godfrey EVP, Head Of Content In APAC
  • Marketing

Media.Monks Names Matthew Godfrey EVP, Head Of Content In APAC

Effective immediately, S4Capital’s operating brand Media.Monks, a digital-first marketing and advertising services company, has appointed Matthew Godfrey to lead its APAC Content practice. With over 15 years of experience leading innovative businesses in the Asia-Pacific region, Godfrey will support a best-in-class senior leadership team across the region as EVP, head of content, APAC. He joins […]

How AI Is Empowering Small Businesses With Creative Collaboration
  • Opinion

How AI Is Empowering Small Businesses With Creative Collaboration

Chandra Sinnathamby, Adobe’s director, digital media B2B strategy & GTM, Asia-Pacific, explains how the tech firm is empowering its small business customers with new AI tools, including its Adobe Firefly tools. In today’s fast-paced digital landscape, small businesses face numerous challenges when it comes to creating captivating content that resonates with their audience. Despite the […]

Opinion

by B&T Magazine

B&T Magazine
Candace Warner, Tom Tilly & Harley Breen Kick Off Summer On Triple M
  • Media

Candace Warner, Tom Tilly & Harley Breen Kick Off Summer On Triple M

Summer mornings are heating up with Triple M again in 2023, thanks to the star-studded line-up of Harley Breen, Candice Warner and Tom Tilley, who are joining forces each weekday morning from 6-9 am for Triple M’s Summer Breakfast show. Airing from 4 to 15 December in Sydney, Melbourne, Brisbane, Adelaide and streamed live on […]

Jimmy & Nath, Hamish & Andy And Seany B Light Up Christmas At Hit Network
  • Media

Jimmy & Nath, Hamish & Andy And Seany B Light Up Christmas At Hit Network

The Hit Network has announced its summer line-up for 2023, kicking off on Monday, 4 December, featuring The Jimmy & Nath Show, Hamish & Andy podcast, Nights with Seany B and special return celebrations for Christmas Day and New Year’s Eve. Hit’s cheeky radio duo Jimmy Smith and Nath Roye of The Jimmy & Nath […]

AFFINITY Launches Worley Rebrand As A Force In Sustainability
  • Marketing

AFFINITY Launches Worley Rebrand As A Force In Sustainability

Full-service CX, media and advertising agency AFFINITY has completed an 18-month-long global rebranding for ASX-listed engineering powerhouse Worley. The rebrand reflects Worley’s commitment towards being a leading force in sustainable change. Worley, a global provider of professional services in the energy, chemicals and resources sectors working across six continents, has set out on a significant […]