OpenSea’s recent move to eliminate resale fees for NFT owners has sparked waves of change, not just among creators, but also within the NFT community. As industry giants like Yuga Labs, the IP holders of iconic Crypto Punks and Bored Apes, announce shifts away from OpenSea, it’s evident that a new era is dawning.
But the ripples of transformation extend far beyond creators and platforms – they deeply impact brands as well. A poignant insight from Marc Baumann sheds light on this shift: “Numerous NFT projects by top brands have generated substantial royalties. This shift demands that monetization strategies be redefined. Business cases must be structured differently, and other marketing KPIs now take center stage.”
✨ This perspective resonates profoundly.
What’s clear is that Brand NFT initiatives demand comprehensive evaluation across the entire brand marketing funnel, transcending from the first spark of Awareness to the full flame of Engagement and culminating in Action. This landscape evokes memories of early days of digital advertising, reminiscent of the late ’90s when ad clicks dramatically dwindled from 20-20% to nearly negligible rates. Suddenly, the once-“most measurable” medium saw its value diminish. Valuations evolved, centering on the holistic impact of “internet advertising” on a brand’s journey – encompassing awareness, engagement, and sales. This era gave rise to pioneers like Dynamiclogic and CRM Metrix, akin to today’s need to measure the complete effects of Brand NFTs, going beyond mere revenue metrics.
🔗 Enter the concept of “proxy-metrics,” powerful indicators that forecast market triumphs. Drawing from both on-chain and off-chain data, proxy metrics offer insights into NFTs’ influence on the marketing funnel’s various stages, including Awareness, Engagement, and Action. Analyzing data from five car manufacturers across seven drops, we’ve showcased the potential of proxy-metrics to discern high performers from underachievers, spotlighting their impact on the full marketing spectrum. This methodology paints a richer picture of NFTs’ impact, expanding beyond the valuable but “limited” metric of total generated revenue to capture the broader branding resonance.
There’s a crucial need for more groundwork in constructing business cases that unearth NFTs’ full value for brands, necessitating a shift in marketing KPIs. This embodies our mission at Brand3index.
