Since the inception of the internet, social media has undergone a remarkable evolution. It has transformed into a nexus for interaction, thus enabling the world of digital marketing. The convergence of non-fungible tokens (NFTs) with social media marketing holds immense potential to forge a symbiotic relationship.
How are NFTs used in social media?
The most prominent use of NFTs on social media is as profile pictures (often shortened to just PFPs). That is what most people see on social media when they come into contact with NFTs. Another notable phenomenon at the intersection of NFTs and social media is domain names (e.g., ENS, Unstoppable Domains).
Unlike traditional domain names that are managed by centralized authorities, crypto domain names are stored on a blockchain as NFTs. This means that web2 is slowly integrating into decentralized digital identities. Moreover, decentralized domain names act as human-readable identification for wallet addresses.
New and interesting ways of using NFTs on social media are being created as we speak. But as of mid-June 2023, PFPs and domain names are the most popular ways NFTs have found utility within social media.
The impact of NFTs on social media platforms
NFTs in social media play many roles. Browse the many Crypto Twitter (CT) profiles, and you will find a bevy of NFTs used as profile pictures. In this way, NFTs act as Veblen goods.
If we look at this from a marketing perspective, this is great for brand awareness and demand generation. NFTs have the potential to fuel virality and user-generated content on social media. When users own NFTs tied to a brand or campaign, they have a vested interest in promoting and sharing that content with their followers, potentially leading to organic and widespread brand exposure.
Moreover, this has made social media a web3 and NFT advertising giant. Due to the memetic nature of many crypto trends, social media has become the go-to method for staying abreast of the latest projects, products, and services in web3.
For example, many celebrities will proudly sport their Bored Apes or CryptoPunks as a sort of signpost that they are avant-garde. From content creators like Logan Paul to recording artists like Snoop Dogg and Eminem, celebrity, and influencer endorsements have contributed to the escape velocity of digital art on social media from a niche hobby.
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Case studies of NFT use in social media
Holding similar weight as a Twitter or Instagram blue check mark, NFTs on social media are instantly recognizable, serving as a degree of separation for those in the know and those who aren’t. Here are a few examples of social media platforms that have integrated NFTs.
Twitter and NFTs
Twitter is a popular social media platform that enables users to share and interact with short messages called tweets. It allows individuals, organizations, and public figures to connect, express opinions, share news, and engage in conversations with a global audience. Twitter is known for its ability to facilitate quick and concise communication.
The platform accounts for a large portion of NFT social activity within the web3. It is a major hub for crypto marketing, especially community growth.
The Elon Musk-run “bird app” is one of many platforms to take the first leap into digital assets and make NFT integrations. On Twitter, you can use your NFTs as profile pictures. It is as simple as changing your profile picture. You can also use decentralized domain names, although there is no native integration or additional functionality for doing so.
Instagram and NFTs
Instagram is a widely used social media platform focused on sharing photos and videos. It allows users to capture moments, apply filters, and share their visual content with followers. The social media platform also offers various features like Stories and Reels to enhance creativity and engagement within the community.
Instagram’s integration of NFTs is pretty similar to Twitter’s. However, Instagram is not particularly known for its crypto-social activities, although it is popular for digital art. Nonetheless, you can also use PFPs and domain names. Much like Twitter, Instagram does not have native decentralized domain name integrations.
Other platforms
Discord
Discord is a popular communication platform designed for communities and groups to connect, chat, and collaborate in real time. It offers voice channels, text chat, and video calling features, making it ideal for gaming, hobbyist, or interest-based communities. Users can create or join servers and engage with others through text, voice, or video interactions.
NFT projects and brands utilize Discord as a hub for their communities to gather and connect. Within NFT Discord servers, members can access important announcements and updates and receive support related to the specific NFT project. Joining these servers is typically free and actively encouraged by the project and its community members.
Discord is typically regarded as the most popular platform for NFT projects. NFT projects encompass a diverse range of individuals, including artists, developers, and investors, and Discord provides an excellent platform to manage all facets of an NFT community effectively.
As a prominent platform for NFT discussions, Reddit has become notable, providing a dedicated space for enthusiasts to engage in conversations and share insights. According to research from Reddit, its users are more familiar with NFTs than users of many other platforms.
In addition, Reddit allows advertisers to promote NFTs if they are working with a designated Reddit sales representative. Notably, Reddit has taken the initiative to compile data from its crypto community, conducting surveys among thousands of Redditors to gather first-hand perspectives, leading to the creation of the NFT Playbook.
Moreover, the platform became notorious for its surreptitious approach to introducing its users to NFTs. In response to the popularity of Reddit’s avatar builder, which was launched in 2020, Reddit’s Collectible Avatars were created. The demand and positive reception of the avatar builder inspired the development of unique digital assets in the form of NFTs.
The pros and cons of NFTs in social media
As with most things in life, all that glitters is not gold. While there are many advantages to NFTs on social media, there are also some drawbacks. You should be aware of both before you start marketing your projects.
Pros
NFTs provide a way to establish verifiable ownership and authenticity of digital content, allowing creators to monetize their work directly and providing users with unique and collectible digital assets.
In the context of social media, there are many parody accounts and phishing scams. NFTs are a great way to separate the real from the fake. While many people can acquire blue checks on some platforms, they are exclusive on others. NFTs are another backstop to verifying identity.
Moreover, loyal customers are invaluable to your business. It’s crucial to make them feel appreciated and unique at every opportunity. Building a sense of community and belonging, akin to an exclusive club, is key, and NFTs can play a pivotal role in facilitating this.
Cons
Many crypto enthusiasts believe that investing in cryptocurrency carries inherent risks due to its volatile nature, with significant fluctuations in value. Similarly, NFTs are subject to the same level of uncertainty. While a particular NFT collection may currently hold substantial value, it’s important to recognize that market conditions can undergo drastic shifts quickly.
To continue, NFTs are great for lead acquisition. They allow you to collect consumer data for further lead generation. However, these benefits start to taper off after a while. While this is a great marketing strategy, it does little to retain engagement. NFTs can give a false sense of success, driven by customers’ eagerness to speculate on NFTs in the secondary market.
Therefore, you should make sure to have a sound product before running with the metrics collected from digital collectibles.
Social media marketing strategies for NFTs
It is a good idea to start considering social media marketing for NFTs. However, simply throwing time, money, and effort at the problem without a plan won’t do the trick. You will need some web3 strategies for social media marketing.
Building an online community
As mentioned earlier, user engagement may trail off after a while (following a product launch or key announcement). That is why user quality is much more important than the vanity metric of user quantity. Therefore, you should focus on building a strong online community.
Implementing drops can be an effective and scalable user acquisition strategy for consumer-targeted products. However, they have limited viability. In other words, you can’t use them very often. Remember, too, that your network is your net worth.
Using borrowed media channels like Discord, Telegram, Twitter, or newsletters can be valuable for talent acquisition. These platforms provide effective means to engage with and attract talented individuals for various opportunities.
Utilizing influencer marketing
Through collaboration between businesses and content creators, unique NFT experiences are developed, resulting in increased revenue, heightened brand recognition, and the potential to connect with new audiences. Many marketers suggest that influencer marketing has a high conversion rate. Here are some ways you can approach influencer marketing for NFTs:
- Find relevant influencers
- Create a collaborative collection
- Integrate NFTs into your products and services
- Utilize affiliate marketing with influencer endorsements
As always, remember to track the results of your influencer campaigns and clearly outline the terms and responsibilities of each party in the agreement. Furthermore, collaborations should always benefit the consumer, so choose influencers that align with your brand.
Engaging with potential buyers
It is extremely important to remember to engage with your potential consumers. Engaging with them impacts the potential lead on a personal level, making them more likely to return or even use your products.
Thankfully, social media is a great tool for this very task. You can like, respond, or repost your potential leads’ content with it. In a way, this rewards user engagement and gives other followers something to look forward to. It also allows you to stay aware of users’ concerns.
Engaging with followers helps you stay updated with their changing needs, interests, and trends. Through conversations and monitoring social media discussions, you can identify emerging topics, industry insights, and shifts in consumer behavior. This knowledge enables you to adapt your marketing strategies, create relevant content, and stay ahead of the competition.
Impact of social media on NFT sales
The growth and success of digital art within the realm of social media has been remarkable. Many artists have gained substantial followings and sales, and social media provides an ideal platform for swiftly connecting with the community to share NFT offerings, host auctions, or announce sales.
The most well-known example of this is Mike Winkelmann, a digital artist known as Beeple. After becoming aware of the growing buzz surrounding NFTs within his online community, Winkelmann released three artworks on the NFT marketplace Nifty Gateway. This initial venture proved immensely successful, ultimately paving the way for lucrative achievements in selling his NFTs.
Forging a new digital frontier
Social media platforms serve as the intermediary and shared space for buyers, sellers, and mediators to engage in the sale of NFTs, similar to how they connect consumers with brands. While NFTs offer numerous benefits, it’s important to consider the potential drawbacks, such as market volatility and diminishing returns on lead acquisition.
Nevertheless, social media marketing strategies for NFTs can be highly effective. As a result, the intersection of NFTs and social media has ushered in a new era of digital marketing.
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Frequently asked questions
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