Measuring success for an NFT Campaign: 5 KPIs to watch out for

By Miyoshi Tamashiro, Digital Marketing Executive Calendar Icon 10 August 2022

How big are NFTs? Just to give you a few figures, in Q1 2022, 950,000 unique addresses bought or sold an NFT, up from 627,000 in Q4 2021. Overall, the number of active NFT buyers and sellers has increased every quarter since Q2 2020, and there is a tendency for these numbers to keep on increasing.

Both consumers and brands have taken a lot of interest in the past months. So it made sense that we wrote about ways to measure if your NFT campaign is proving successful.

Let’s have a little recap.

NFTs or Non-fungible tokens are smart contracts that represent the ownership of unique items.

To understand if NFT’s will hold future value, you must first look for the following:

Rarity/Celebrity: Is the project highly desirable, limited supply, and or created by a celebrity?
Utility: Does the NFT project have use outside of just being a piece of art?
Uniqueness: Is the art/project unique, or does it follow the same 8-bit formula as those in the past?

Examples of NFTs:
-A piece of artwork used to fund a café in NYC
-A digital item used in a virtual universe
-A ticket to an exclusive event around business, marketing, and ideas
-Domain names (like coffee.eth)

Why would your community get an NFT?

It’s really easy to get lost in trends and activate a campaign based on what other competitors are doing. However, it is important to understand the different reasons why your target audience might want to own an NFT.

Humans have a tendency to collect
Purely for the satisfaction of seeking and owning them.

Financially support artists/ projects
By buying an NFT, a fanbase is directly endorsing an artist. Moreover, if you decide to sell that NFT in the future, the artist will get royalties from it.

Utility
Buying an NFT is more than a .jpg file. They give you access to special sessions with the artist, giveaways for NFT holders, and more.

You become part of a community
Collectors from certain NFT drops build communities on Twitter or Discord to discuss interests in common, such as when the next drop is, similar NFT collections or just a chat amongst comrades.

Once you have an overview of their different purposes, it is important for the brand to analyse why anyone would interact with the NFT campaign. Is it because it is a luxury product and it gives them status? Is it a matter of community? Exclusive benefits? Or perhaps your community wants to support the brand and help them grow.

KPIs for the best NFT campaigns

Getting an NFT collection out requires a lot of research and hard work. So it only makes sense that you set your team clear targets so all their efforts go towards the same direction. We believe that there are not many things we can ALL agree on, efficiency is important, and time is money – and KPIs can help you stay on track.

KPIs, or Key Performance Indicators, are a pertinent part of measuring the successes and failures of your business.

1. Estimated market cap
A high estimated market cap means that there are more owners of the tokens and they may be willing to pay a higher price to acquire the NFT collection from one another. This can be calculated by multiplying its 7-day average price by its total supply.

2. Diamond hand balance
Diamond hand is someone who plans to hold onto an NFT long-term, with no concern about market conditions in the short term. They hold an NFT because they believe in the project.

3. Number of unique holders
This helps understand the true size of a community. Communities are crucial for NFT projects. The larger the community, the more conversation around the topic will be generated, increasing word-of-mouth and campaign awareness.

4. Average website session
Make sure that users are interacting with the content and understand the main purpose of this NFT collection. The higher the session, the more interest there is on the website’s information. Double-check that there is a smooth user journey and different sections are easily accessible – such as purpose, roadmap, white paper, access to NFT.

5. User Journey
Understand the audience’s interest in the project and how they are interacting with the collection. A few metrics to watch out for are social media impressions, social media engagement, email sign-ups, website visits, NFT acquisition, post-interaction with NFT benefits.

 

What makes NFTs interesting and different from other investment assets is how human-centered they are. Make sure your next NFT collection understands the audience and your team is ready to measure success. Need a hand? Contact the Aurora team and we’ll create amazing projects together.

Related articles

Let’s create amazing work together

We are giving our website a revamp. In the meantime please get in touch if you are ready to work on some super cool things together.