Journal of Strategic Marketing

From Canvas to Crypto: Digital Art and NFTs in the Art Market – Innovation, Hype, and Long-Term Impact

The emergence of digital art and non-fungible tokens (NFTs) has sparked a profound shift in the art market and cultural sector, introducing new dynamics to marketing strategies, business models, and asset ownership (Belk et al., 2022; Guan et al., 2024). Defined by their cryptographic uniqueness on blockchain technology, NFTs are transforming how digital assets are marketed, owned, and valued (Hakkarainen & Colicev, 2023). At the same time, they are reshaping the roles, relationships, and value chains for key stakeholders in the art market, including artists, museums, collectors, galleries, auction houses, and art fairs (Valeonti et al., 2021). 

NFTs have not only redefined the concept of ownership and value in the art market but have also raised questions about the stability, sustainability, and impact of these digital assets (Calvo, 2024). Are we witnessing a fundamental transformation of the art market and art marketing strategies, or are these developments merely a short-lived trend?

This special issue will explore the dichotomy between the optimistic potential of NFTs and digital art marketing vis-à-vis the skepticism surrounding their volatility, environmental impact, and speculative nature. For art organizations and artists, NFTs present unprecedented opportunities to reach global audiences, build digital brand identity, and diversify revenue streams (Rahmani et al., 2024; Sheng, 2024). Yet, these gains are tempered by substantial risks and operational challenges, requiring careful consideration and strategic alignment (Boido & Aliano, 2023).

From a marketing perspective, NFTs are reshaping traditional art market structures, influencing how artists and institutions engage with audiences bypassing intermediaries and expand their brand presence (Belk et al., 2022; Bsteh & Vermeylen, 2021; Hofstetter et al., 2022). This trend empowers artists and cultural organizations alike but simultaneously disrupts longstanding market practices, raising questions about the endurance of these digital assets in a traditionally physical market (Poposki, 2024; Russell, 2022).

Case studies such as the British Museum’s collaborations with blockchain platforms and decentralized governance models in institutions like the Museum of Crypto Art illustrate the complex, sometimes unpredictable impacts of NFTs. These initiatives demonstrate both the promise of new revenue models and the unpredictability of decentralized systems, which can challenge organizational control and financial stability (Khomami, 2021; Thurman, 2021).

However, the integration of NFTs raises notable challenges. Criticisms have emerged regarding the environmental cost of blockchain technology, market saturation, the prevalence of fraud, and the volatility of NFT values (Boido & Aliano, 2023). High-profile instances of financial setbacks and intellectual property conflicts only deepen concerns about the long-term viability of these assets (Bose et al., 2023; Conlon & Corbet, 2023). For artists and collectors, NFTs introduce new ethical and financial considerations, as the market’s focus on digital transactions sometimes prioritizes financial gain over artistic value (Sharma et al., 2022).

This special issue will delve into the lights and shadows of how NFTs are reshaping marketing and brand identity within the art market, presenting art organizations with innovative avenues for global engagement and revenue generation. While NFTs offer exciting potential, these digital assets also underscore the importance of strategic alignment and sustainable practices, as organizations must navigate challenges such as environmental impact, market volatility, and ethical considerations. Through this examination, we aim to provide a nuanced view of NFTs’ role in the evolving landscape of art market strategies and brand management.

We invite empirical, conceptual, and case study-based research examining:

• NFTs as branding tools for artists, galleries, and museums
• Monetization and ownership models in the digital art market
• Decentralized governance and audience engagement through NFTs
• Opportunities for marginalized artists and global market access
• Sustainability challenges and ethical marketing in the NFT ecosystem
• New funding strategies for cultural institutions using NFTs
• NFTs as drivers of artistic collaboration and co-creation
• Legal and regulatory challenges affecting brand protection
• The cultural and economic impact of NFTs on the traditional art market

This special issue aims to provide a critical, multidisciplinary perspective on whether NFTs represent a sustainable marketing innovation or a speculative trend, offering valuable insights for researchers, industry professionals, and policymakers.

References

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Boido, C., & Aliano, M. (2023). Digital art and non-fungible-token: Bubble or revolution?. Finance Research Letters, 52, 103380. https://doi.org/10.1016/j.frl.2022.103380

Bose, P., Das, D., Gritti, F., Ruaro, N., Kruegel, C., & Vigna, G. (2023). Exploiting unfair advantages: Investigating opportunistic trading in the NFT market. arXiv preprint arXiv:2310.06844. https://doi.org/10.48550/arXiv.2310.06844

Bsteh, S., & Vermeylen, F. (2021). From painting to pixel: Understanding NFT artworks (Master’s thesis, Erasmus University Rotterdam).

Calvo, P. (2024). Cryptoart: Ethical challenges of the NFT revolution. Humanities and Social Sciences Communications, 11(1), 1–10. https://doi.org/10.1057/s41599-024-02872-2

Conlon, T., & Corbet, S. (2023). The problem with NFTs. Available at SSRN: https://ssrn.com/abstract=4640796 or http://dx.doi.org/10.2139/ssrn.4640796

Guan, M. Y., Li, J., Hu, J., Gu, Z., Wang, Y., Lu, Z., & Wang, K. Y. (2024). From digital art to crypto art: The evolution of art brought by NFT. International Journal of Human–Computer Interaction, 1-20. https://doi.org/10.1080/10447318.2024.2395088

Hakkarainen, T., & Colicev, A. (2023). Blockchain-enabled advances (BEAs): Implications for consumers and brands. Journal of Business Research, 160, 113763. https://doi.org/10.1016/j.jbusres.2023.113763

Hofstetter, R., de Bellis, E., Brandes, L., Clegg, M., Lamberton, C., Reibstein, D., Rohlfsen, F., Schmitt, B., & Zhang, J. Z. (2022). Crypto-marketing: How non-fungible tokens (NFTs) challenge traditional marketing. Marketing Letters, 33(4), 705–711. https://doi.org/10.1007/s11002-022-09639-2

Khomami, N. (2021, September 24). British Museum enters world of NFTs with digital Hokusai postcards: Partnership with new platform LaCollection aims to inspire next generation of art collectors. The Guardian. https://www.theguardian.com/technology/2021/sep/24/british-museum-nfts-digital-hokusai-postcards-lacollection

Poposki, Z. (2024). Crypto-aesthetics: towards a New Materialist theory of NFT art. Journal of Visual Art Practice, 1-18. https://doi.org/10.1080/14702029.2024.2393554

Rahmani, S., Kamila, E. R., & Violita, C. E. (2024). NFTs and branding: A marketer’s guide to the digital art craze. Journal of Economic, Business and Accounting (COSTING), 7(4), 7914-7919. https://doi.org/10.31539/costing.v7i4.10491

Russell, F. (2022). NFTs and value. M/C Journal, 25(2). https://doi.org/10.5204/mcj.2863

Sharma, T., Zhou, Z., Huang, Y., & Wang, Y. (2022). “It’s a blessing and a curse”: Unpacking creators’ practices with non-fungible tokens (NFTs) and their communities. arXiv preprint arXiv:2201.13233. https://doi.org/10.48550/arXiv.2201.13233

Sheng, Y. (2024). Empirical analysis of the impact of fintech on the art market: the application of blockchain technology and non-fungible tokens (NFTs). https://doi.org/10.20944/preprints202405.1696.v1

Thurman, A. (2021, May 26). Museum of crypto art to launch MOCA token, plans acquisition spree. Cointelegraph. https://cointelegraph.com/news/museum-of-crypto-art-to-launch-moca-token-plans-acquisition-spree

Valeonti, F., Bikakis, A., Terras, M., Speed, C., Hudson-Smith, A., & Chalkias, K. (2021). Crypto collectibles, museum funding and OpenGLAM: challenges, opportunities and the potential of Non-Fungible Tokens (NFTs). Applied Sciences, 11(21), 9931. https://doi.org/10.3390/app11219931