It seems like almost every day another brand is launching its own NFT, but who is actually buying these digital goods?
Not that many everyday consumers, according to an October 2021 survey by Forrester.
Although popular brands like Taco Bell, e.l.f Cosmetics and the NBA have all released their own non-fungible tokens—we even started a list to keep up with them all—the average consumer is still wondering what the heck NFTs are.
The survey of 506 adults in the U.S. found that 45% of respondents had never heard of NFTs, and 28% still don’t understand them.
Part of this disconnect could be that brands are just trying to get ahead of their consumer when it comes to NFTs, which are digital art pieces that use cryptocurrency technology to make it one of a kind.
Consumers don’t seem to be turned off by the idea of brands releasing NFTs—12% of U.S. respondents said they’d like to see more brands release NFTs, and 25% said they are eager to buy an NFT.
And while not all consumers currently are clamoring for NFTs, there are enough buyers that brands don’t want to miss out.
The digital goods are ways for brands to connect with a new audience and generate revenue at the same time.
“NFTs will become far more interesting within the context of the metaverse–once it’s actualized,” Mike Proulx, VP and director of research at Forrester, said in a note, referring to the virtual reality world companies like Meta (formerly Facebook) and Microsoft are banking on being the future of computing. “One-of-a-kind digital art can help decorate your virtual home. Limited edition sneaker drops can customize your avatar. And NFT tickets will give you exclusive access to VIP events happening within the metaverse.”
The report found that U.S males are the most likely to buy an NFT, while 20% of U.S. men said they already own at least one NFT. Only 7% of U.S. women own an NFT.