The rise of Non-Fungible Tokens has created a new frontier for brands looking to engage with consumers in a more meaningful way.
However, as more and more brands enter the space, many are discovering that what they have committed to actually requires methodical, continuous effort and engagement that escalates with each milestone. Basically, brands are finding themselves in a type of ‘engagement Ponzi scheme’ that their marketing teams are not equipped to handle. Here’s why.Many users ask for “utility” from NFTs, but what they actually mean is “entertainment” .
At the same time, in order to meet the high expectations of users, brands are being forced to commit more and more resources to the NFT space. This is unsustainable in the mid- to long term.
NFTs inevitably include intellectual property from the brand. Marketing teams don’t usually handle IP matters independently as that’s usually handled by the legal team. Here’s what it boils down to. When a global brand enters the NFT space, it commits to an indefinite amount of engagement with NFT holders since these same holders have expectations for special access/content, etc. What this means is that brands have to become providers of utility to these users. In effect, these brands have to become active producers of entertainment for NFT holders.
The production process also requires extensive coordination between different departments, such as design, development and copywriting to ensure that all elements align with the brand’s messaging and goals. Additionally, the production process often involves elaborate design requirements, such as creating high-quality visual assets, video production and animation, as well as ensuring that the final product is optimized for different devices and platforms.
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