Study on NFTs: potential and risks for brands
A study by the University of Lucerne shows how companies can use NFTs to boost revenue—and what reputational risks are involved. To this end, the researchers analyzed 671 NFT campaigns by global brands.
"Non-fungible tokens, or NFTs for short, have established themselves as a digital business model in recent years. Brands from a wide range of industries - from car manufacturers such as Renault and Kia to luxury brands such as Gucci and Balmain, Disney and Marvel - have included NFTs in their offering. One Current study by Leif Brandes, Professor of Marketing and Strategy, and doctoral student Katharina Dölp examines the economic benefits and potential risks of this strategy.
The analysis of 671 NFT campaigns shows: Financial success depends on several factors. A strong brand positioning, strategic partnerships with Web3 experts and the added value of an NFT for customers are particularly effective. Companies that offer NFTs not just as collector's items, but with additional benefits, were particularly successful.
However, the use of NFTs also harbors reputational risks. An experiment with almost 3,000 participants showed that the mere announcement of an NFT campaign can damage a brand's image. A poorly thought-out strategy amplifies this effect - especially for premium brands.
The researchers conclude that NFTs can be an opportunity for companies, but require careful planning. While they can increase sales and open up new markets, there is still a risk of reputational damage in the sometimes controversial crypto market.
