Healthy and General

How NFTs are used by brands to collect customer data

2 min read

“You can utilize wallet addresses to glean all kinds of insights about the consumer,” Cherian said. The contents of a person’s wallets could show the brands they love or even how much disposable income they have, particularly if they own one of the rarer NFTs, like Bored Ape Yacht Club or CryptoPunks. “The reason these companies are creating branded wallets is precisely for data purposes,” Cherian said. “They’re making an assumption that they’ll be able to get more customer data.”

There is a debate right now within the marketing community about whether NFT drops and other Web3 activations are a passing fad or leading to a new kind of advertising. The topic has become even more relevant with “crypto-winter” setting in, which has been marked by a decrease in NFT sales on marketplaces like OpenSea. Also, Bitcoin and Ethereum, which is the main cryptocurrency used in NFT sales, have dropped precipitously in value this year. Crypto exchanges and currencies, once buzzing with celebrity endorsements, have lost their shine. And there are worries about a general economic slowdown, which could force brands to abandon experimental marketing like NFTs and blockchain-based gambles.

“NFTs, they showed up, they made themself known and garnered a certain cultural center of gravity, but they really didn’t deliver on the promise,” said Craig Elimeliah, chief experience design officer at VMLY&R.

Elimeliah is working with brands to create strategies for the coming metaverse and Web3, the next-generation computing platform that would supplant the social media platforms and walled gardens from Web 2.0. In Web3, NFTs have a role, but it’s not about one drop, Elimeliah said. To have a proper Web3 plan, “you have to show that you’ve thought through the first steps,” Elimeliah said.

Moebius of SmartMedia agrees, and said brands have “expanded their view.” The NFT activations are becoming more of a gateway to customer loyalty programs and experiences, either in the real world or in digital realms.