Must know NFT basics for marketers in HK looking to launch projects

NFT is the hottest topic of conversation at the moment, and it doesn’t fall on deaf ears in the marketing industry. Globally, many brands and celebrities have already jumped on the bandwagon of creating their own implementations to entice consumers.

For example, singer Jay Chou and Hong Kong actor Edison Chen are two popular figures in NFT’s OpenSea online marketplace, with Chou’s NFT even topping the list. Boyband MIRROR member Ian Chan also launched 2222 NFT, and the first batch was released in November 2021. Meanwhile, actor Shawn Yue has sold NFT for more than HK$33 million before, several media outlets reported.

In Hong Kong alone, we’ve seen a slew of brands eyeing the space. For example, NFT game developer and blockchain “HolyShxxt!!” Launched a collection of generative art holdings that includes 8,888 special football players. All “HolyShxxt!!” NFT for soccer players is unique and is created through a combination of 15 attributes and over 480 attributes as well as special functional features such as jets, wings and other items that make it even more valuable.

In a version, “HolyShxxt!!” He said he believes that a successful NFT initiative must be based on good governance of the online community that creates long-term value. Hence, the company will launch a play-for-earning football management simulation game for NFT holders, allowing all members of the community to collaborate and participate in creating their dream team.

But before working on any NFT project in Hong Kong, brands should be armed with enough information about their local land and global trends affecting their land.

In a conversation with MARKETING-INTERACTIVE, Vincent Kahn, President of Wavemaker at Hong Kong Digital, said that while the NFT market is rapidly emerging, there is still education. He added that NFT as a topic is gaining market interest due to its association with cryptocurrency and its potential investment value.

“Currently in Hong Kong, the majority of NFT products are still digital art and collectibles,” Kan said. As NFT products gain traction, and this may be a potential new channel for brands, there are many aspects about NFT space brands that need to be considered.

Let’s take a look at the basics

Essentially, the NFT space underlies the blockchain technology that makes transactions and ownership completely transparent. At the moment there is a lack of management and regulation of the NFT space, but of course, as the space matures, players in the industry are speculating on more structures to come. However, Tu Cheung, founder of UD, said the lack of regulations could be a problem.

“Sometimes it is difficult to tell if an NFT product is genuine. For example, when someone presents an NFT product inspired by the Demi-Gods and Semi-Devils novel, they do not need to prove whether it is an original product or how it is created …producing fakes is somewhat easier.”

Luxury company Hermes, for example, recently filed a lawsuit against NFT creator Mason Rothschild, who designed the MetaBirkins NFTs. The lawsuit was filed in New York last Friday alleging trademark infringement.

“Because there is no regulation at the moment, when a buyer doubts whether a NFT product is genuine, he can’t file a complaint because no one judges,” Cheung said.

Marketers should also note the volatile cost of cryptocurrencies, which may affect the price of NFT products.

decide to start

Although there are many areas that marketers need to note, they also need to know how to connect the world of NFTs with marketing.

For now, NFT resonates mostly with Generation Z and art lovers, said Kan Wavemaker in Hong Kong. In addition to the value of NFT, brands must also consider its increased benefits, such as providing targeted audiences with member-only communities or events.

“Brands can also offer memorabilia to attract their customers. Brands can also explore new media opportunities from placements to virtual personalized experiences,” he added.

When it comes to implementation, Kahn said brands should benefit from integrated campaigns such as PR events, social marketing and influencers featuring digital content creators and celebrities, along with NFT activities to drive brand engagement, social hype and marketing outcomes. Marketers should also consider incorporating real-life events into virtual initiatives such as introducing an NFT product through an offline exhibition or a physical product.

Adding to the conversation, Cheung said NFT is not just about selling a single piece of art at a high price now. Brands are now engaging their customers with perks and pre-ordered items, as these means are meant to nurture loyalty.

Cheung Kan said, given that NFT is still a relatively new concept, consumers need more education to understand the space as well. This means that it may take more time for brands to figure out what their target audience is and what they can really achieve when venturing into the space.

“NFT can be challenging and costly and brands may not be able to master relevant skill sets and technology at the moment. Moreover, digital NFT creation and production, related technology and data privacy may further complicate conducting NFT-related marketing initiatives,” Kahn said.

He added that in addition to social campaign metrics, a clearer method of outcome measurement should be considered to assess the effectiveness of NFT marketing activities.

Finding the right partner

The most difficult challenge for marketers, Cheung said, is the insufficient knowledge of NFT in general. To further educate themselves, marketers are advised to invest their time and money in NFT and cryptocurrency products to understand the entire transaction process.

“There is nothing better to educate yourself as there are no courses at the moment. By creating a crypto wallet and trading NFT, your understanding of NFT will be greatly enhanced and this is something that textbooks cannot tell you,” Cheung added.

Finally, if your brand has done its research and is set to venture into the field of NFT, experts advise working with an agency with the right capabilities to really understand the potential risks and benefits, and have the ability to mitigate them for clients.

The agency partner must also excel in integrated planning, with strengths spanning branding, social, content, data and performance to deliver an effective NFT campaign.

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