Deb Gabor, CEO of Sol Marketing and Author of ‘Irrational Loyalty: Building a Brand That Thrives in Turbulent Times’ on NFTs and How Businesses Can Use Them
Wondering what NFTs are and how your business can use them for its benefit? We’ve asked Deb Gabor, CEO of Sol Marketing and Author of ‘Irrational Loyalty: Building a Brand That Thrives in Turbulent Times’ the most pressing questions about NFTs.
(Beyond Fashion Magazine): In your opinion, what is the real value behind NFTs and what is causing such attention to it right now?
(Deb): The real value in NFTs is their ability to create awareness and create goodwill for a brand in a way that transcends usage of the product. People who are fervent fans of a brand can have a one-of-a-kind or limited edition token that allows them to demonstrate to the world — or themselves — their Irrational Loyalty and dedication to the brand. It’s kind of like a “digital t-shirt” for brand fans … Many brands have successfully evolved into “lifestyle” brands that enable their brands to be consumed through marketing in areas where they don’t even have product lines, and NFTs are another way to do that. A lot of the hype around NFTs right now is that they have a financial value associated with them that’s confusing to people who don’t understand the value of content in the digital world. Brands can use NFTs to pre-announce product launches, creating a sense of energy or momentum in the market to drum up excitement. They can use NFTs as a way to attract and engage a community of superfans around their brands. They can use them for promotions, to gamify their brand relationships, to create new kinds of engagement with their brands.
What would you recommend to brands to use as their NFTs?
I don’t have any specific recommendations here, but I would recommend the same strategic approach any brand should apply in ANY marketing campaign or creative endeavor: first, aim your brand at your Ideal Customer, the one who is most highly predictive of your success. Not just their demographics, but their attitudes, values, and beliefs. Then create something that aligns with their hopes, fears, dreams, desires, challenges, etc. Make your NFT something that has not just financial value, but emotional value to that person. Make sure it’s “on brand” for your brand – meaning that it strategically aligns with your organization’s goals and objectives, and most importantly with the values you want to demonstrate through actions in the world.
Do NFTs have to be a real piece of art or just anything?
I think the sky is the limit with regard to what can be NFTs — these are digital extensions of a brand that could be anything that a buyer/owner would feel has value to them. Recently we’ve seen a lot of digital artwork become NFTs, but if you can imagine it, and it can exist in a digital form, and it has value to any individual where they’re willing to pay for it, it can become an NFT. Original digital photographs (like the one sold by the real woman behind the now famous Disaster Girl meme), comic strips by Scott Adams (of “Dilbert” fame), and even game pieces and tokens for online games have all become incredibly valuable NFTs.
How can brands use NFTs to increase their brand awareness and what they shouldn’t be doing?
One big part of the conversation around NFTs and all cryptocurrency is the environmental impact. Because computers are basically online all the time “mining” for these things, there is a real environmental impact coming from their energy usage. Brands that have made outward statements about being “sustainable” or “environmentally-conscious” need to make sure that they’re prepared to navigate criticism from consumers who see cryptocurrency efforts in conflict with larger brand values and statements. However, there are equal arguments on the flip side of NFTs, in that they are digital representations of a brand that won’t eventually end up in a landfill or won’t negatively contribute to a brand’s carbon footprint because they’re not reliant on factories or transportation to get into people’s hands. Regardless of what a brand feels is the correct side of this argument, they need to be prepared to have a proactive and clear, brand-aligned stance, and be ready to respond in a clear and consistent way when the public pushes back.
Do you see NFTs as a long-term thing or just a temporary hype?
There’s no way of telling what will happen to NFTs. It’s like they came out of nowhere about two years ago, and now every industry I deal with is talking about what to do with them. NFTs may be a short-lived obsession like Pokemon Go! or what Vine was a couple of years ago… or it could be here to stay. While I don’t have a crystal ball, I do predict that, as we see wider consumer adoption of NFTs led by fashion, CPG, and entertainment brands, cryptocurrency could finally hit its stride as a long-term alternative form of currency.