What We Learned About The Future of NFTs: Engagement, Awareness, Exploration
With big numbers ($69 million at auction) and famous sellers (Jack Dorsey) driving the hype, non-fungible tokens (NFTs) have emerged over the last year as one of the hottest commodities on the planet.
But it was at a nonprofit arts organization in downtown Miami in late spring where we really saw the future of NFTs. The Adrienne Arsht Center for the Performing Arts of Miami-Dade County partnered with three recent local art school graduates to create NFTs of unique digital collectibles as part of Lasting Impressions, a world premiere 3D visual art experience that ended its critically acclaimed run at the Arsht in June.
It was one of the first times a performing arts venue delivered NFTs as a collectible, and it was enabled by True Tickets’ secure digital ticketing service and product expert Kristin Darrow. It made possible an entirely new way of engaging with patrons as well as innovatively connecting the arts community in South Florida by offering a unique collectable digital asset.
How the NFTs at the Arsht Center worked
Three emerging local artists — Ruth Burotte, Alain Martinez Rives, and John Medina — created three pieces of digital artwork each that were then minted into NFTs.
Each artist created one gold NFT to be auctioned off, with proceeds of the initial sales going to the artists. A limited number of silver NFTs were distributed to Lasting Impressions guests and the public via a free public lottery. All Lasting Impressions ticket purchasers who attended the exhibition were able to claim a complimentary bronze-tier NFT.
Proceeds from all sales will be shared among the artists, Arsht Center, New World School of the Arts, and investments in carbon offsets. The goal was to build community, and that was a clear win.
Beyond that, this event was an early indicator that this use of NFTs, decoupled from a ticket, will be a legitimate engagement tool for nonprofit arts organizations and live experiences in music and sports as well. And we need more innovative case studies like Arsht’s to further explore the possibilities.
More Exploration is Necessary To Transition NFTs From Hype To a ‘Lasting Impression’
NFTs rose to international attention in early 2021, attracting those looking for the next big thing. The hype seems to be fading, as overall NFT sales dropped from a seven-day peak of $176 million on May 9 to $8.7 million on June 15. This set NFT activity back to where it was at the start of 2021.
Maybe the bubble will burst, as some predict. Or perhaps this is a blip in the overall arc of NFTs. The cool-off might be the very thing that NFTs need to ensure a more long-term future among artists, brands, and marketers.
Until now, NFTs have gained traction on the backs of younger, tech-savvy collectors and investors. Millennials, driven by FOMO and ROI, are more than twice as likely to invest in NFTs than other age groups. Elsewhere, awareness ranges from low to almost non-existent. Despite these gaps, there are positive signs. Executives are increasingly bullish on blockchain, according to a report from June 2020, which supports NFT creation and storage.
Of the thousands of patrons who purchased tickets for and attended Lasting Impressions, a small fraction requested the free bronze NFT and even fewer entered the lottery for the silver NFT. Considering how quickly the collaboration came together, and that the attendees weren’t your typical NFT patrons, these numbers tell us that even when there is low awareness, NFTs have the potential to influence engagement, loyalty, and positive publicity. There’s clear interest and a lot more to explore.
Quick Lessons From The Arsht To Drive Your Own NFT Tests
Focusing less on big auction names and numbers and more on engagement and brand awareness will provide all the legs NFTs need to earn genuine staying power as a marketing force for the future. Here’s what we learned from partnering with the Arsht Center.
· Even for veteran NFT creators, keeping tabs with the changing NFT market is an ongoing process. It’s important to research new marketplaces and business practices to fully understand each opportunity. For example, every NFT you sell could have slightly different needs, like you might wish to change the royalty scheme on one piece vs. another. Each NFT marketplace allows different royalty “caps” that could throw off your plans for using a particular marketplace. Also, many “limited listings” marketplaces take weeks to approve new artists to sell, so apply to these as soon as you can.
· Similarly, don’t skimp on marketing lead time. NFTs need to be marketed just like any other product or event. Understanding the nuances of NFTs and the Blockchain up front is important to get the right strategy in place. Education is needed until NFTs break through as mainstream assets associated with live events.
· Start slow. Create one NFT per item unless you already have a wide following. People purchasing NFTs are looking for the unique. Make sure your listing reflects this as much as possible.
· NFTs are more than the next shiny object and deserve the same proactive and strategic planning as any other marketing tool. That requires thoughtfully generating interest and engagement in ways that are accessible and drive follow-up interactions.
· A seamless and curated user experience that can be delivered at scale is a ways away, but there is a future where this does exist. A day may exist where a fan or patron leaves an event and is proactively presented with curated digital content (if I see the Twins play the Red Sox at Fenway I would prefer a Twins related NFT) that is immediately accessible in their account with “one-click”. We’re no where near that yet, but that should be the goal, however, much of the complexity involving creation and assignment of NFTs needs to be abstracted out of the user experience.
Our key takeaway is that there is enough “there” there from the Adrienne Arsht Center and its Lasting Impressions NFT pilot to continue exploring the concept. It represents a potential unique pathway to forge lasting engagement.
