A United Talent Agency survey recently found that 6% of US consumers ages 16-54 own an NFT, either by buying it, winning it, or receiving it as a gift, but 38% want to own an NFT. in the future. Combined, that equates to 65 million US consumers between the ages of 16 and 54.
Respondents who indicated that they would like to learn more about NFTs or own a digital asset in the future were categorized as “curious NFTs.” Of these, 8 in 10 think NFTs are more than just “hype,” and three-quarters of those familiar with NFTs want to create one themselves.
The investigation came after digital artist Beeple’s widely reported sale last year of an NFT for $69 million, which both set the high point (so far) for an NFT sale. and set off an NFT boom. Since no one expected every NFT to sell for millions of dollars, UTA wanted to get a sense of where the industry was headed, said Lesley Silverman, head of UTA Web3.
“The impetus for this study was the big numbers talk for NFTs and we wanted to know what was driving the boom cycle,” Silverman said.
The investigation found that reports of NFTs being sold for huge sums both sparked consumer interest while creating a perception that the price could put ownership of NFTs out of reach. Joe Kessler, global head of UTA IQ, said the survey was conducted during a “frothy” period in the NFT market after the sale of Beeple, but ultimately showed there is a sustained market for NFTs. , at least potentially.
“We found that consumers have their own motivations for buying NFTs and that there are barriers to entry,” Kessler said. “The biggest barriers are education and access. Interested consumers do not know how to buy an NFT. They need an easy and accessible way.
Profit and Fandom Drive Interest in NFT
Since the survey was conducted and published, the top of the NFT market has declined, but consumer interest in acquiring an NFT, whether as a souvenir, investment, or cosmetic purchase, has increased. The survey found that the primary motive of curious NFTs is to make a profit, but simple pride of ownership is also a major motive.
“There will always be a case for art for art, regardless of the medium,” Silverman said, noting that the survey found that half of NFT owners post their NFT on social media and that one in three displays them at home. There is a lot of interest in NFT display platforms, much like a person would hang a painting or a poster on their wall.
“I think it’s a logical shift for the market,” Kessler said.
But what can I do with it?
The vast majority of consumers surveyed – 92%, to be precise – who are curious about NFT believe that brands have a role to play in the NFT space. Forty percent said they like it when brands create NFTs tied to physical goods or rewards, and one in three consumers think NFTs can bring fans closer to creators.
Silverman said consumers are eager to see NFTs connected to an experience or object in the physical world, perhaps like a ticket to a concert that they can keep as a souvenir, or something like a coupon that can be exchanged for an item in a store.
“People want to be able to redeem an NFT for something in the physical world, or to access an event,” she said. “Utility looks like the buzzword of the market.”
The survey found that while interest in NFT property increased with income, people were clearly price constrained. The survey found that consumers were generally willing to pay between $100 and $1,000 for an NFT.
“There are strong indications that we’ll see a lot more consumer interest, but a thousand dollars is still a lot of money,” Silverman said.
Kessler observed that during the pandemic, when live entertainment and cinemas were closed, fans moved quickly to interact with performers in new, or at least not previously used, ways. Live streaming of concerts and movies has increased dramatically, as has time spent online. While NFTs existed before the pandemic, it was during the pandemic that the public became much more aware of them. The survey found that owners of NFTs related to music and video games are attracting the most interest.
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