Brands: Stop treating NFT drops like ad campaigns

cointelegraph.com:

The rise of Non-Fungible Tokens (NFTs) 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. 

The challenge stems from two things:

If brands are not able to deliver enough entertainment, users will become dissatisfied and the NFT initiative fizzles from the drop in momentum.

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. 

When the topic of NFTs pops up internally at any global brand, a question emerges: Who owns it? I don’t mean the NFT, I mean who owns the responsibility of managing the NFT side of the business? Suddenly everyone looks at marketing, because Marketing has the capability to produce engaging content to connect with users. And what else should NFTs be classified as, other than a new way to engage with loyal users?

There are a few problems with this logic. Here’s the revolving door of stakeholders that end up being pulled into this discussion: 

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