One of the biggest topics in the NFT space at the moment is Utility. Never in history has a piece of art had so many real-world uses from incentivizing real estate sales to acting as a ticket to exclusive events and political fundraising.
One discussion that’s also starting to take center stage in the space is the commercial viability topic. Essentially, the topic raises the question, “What do NFTs have to offer from a commercial standpoint?”
On Tuesday, Jenkins the Valet, a Bored Ape whose owner was signed to the mainstream talent agency, CAA, appeared on episode 17 of the Ohhhshiny Show to further the conversation of commercial viability.
What’s up With Jenkins the Valet?
For those of you who haven’t been following along, Jenkins the Valet is a Bored Ape with one heck of a backstory. Jenkins is essentially an outcast that worked as a valet driver for the Bored Ape Yacht Club (BAYC).
At the moment, the owner of Jenkins the Valet is working on an NFT project surrounding him, which was discussed at length on the Ohhhshiny Show. The writer will be putting together NFT narratives that will be presented to the general public relatively soon.
The conversation quickly veered into the commercial viability topic. Interestingly, big brands like AriZona, Visa, and even Louis Vuitton have found themselves in the NFT marketplace, purchasing their own unique pieces of art. So, why would they be doing that?
When an NFT is purchased, the intellectual property, or IP, relating to that NFT are transferred to the purchaser. So, the purchaser owns the legal rights to the image which can then be used in some pretty creative ways. Some ways that big brands might use the NFTs they purchase include:
First and foremost, the advertising opportunity is impossible to ignore. Successful projects like Bored Apes, Lazy Lions, CryptoKitties, CryptoPunks, and more, are met with a significant following. So, when NFTs associated with these projects find their way to mainstream advertising, those who take part in these projects are likely to pay attention.
Think about it, AriZona may create a limited-edition iced tea can featuring the image associated with an NFT they purchased, and as is the case when brands put celebrity photos on their products, the communities surrounding the NFT projects associated with the image will be eager to get their hands on the limited-edition can.
As mentioned above, successful NFT projects have massive communities that follow them, and their popularity only seems to be growing. Moreover, with the legal rights to the image associated with the NFTs, big brands have the ability to use these images on t-shirts, hats, or any other apparel or product they desire, which could help to significantly boost sales.
Finally, NFTs are increasingly being used as incentives, both for salespeople and the people buying products. Competitions can be created around these NFTs, creating revenue growth opportunities.
For example, Visa may buy a high-value Bored Ape and make an announcement that every time a consumer swipes their Visa card, they’ll be entered into a drawing to win the NFT. Anyone who wants to get their hands on it would be more likely to swipe their Visa than pay in cash, and since the company makes money from transaction fees that merchants pay when their cards are used, a significant jump in revenue could take place.
The Bottom Line
The bottom line here is simple. NFTs have significant potential to help companies build their brands, increase their revenues, and drive traffic to their products and services. Jenkins the Valet is putting that idea to work along with several others in the NFT community.