Let’s examine non-fungible tokens (NFT) and the ways in which brands might employ NFT in their marketing initiatives.The previous few years have seen a rapid advancement in technology.
Blockchain is one sector that has seen some of the fastest breakthroughs.
Not just Bitcoin, Ethereum, and the other other cryptocurrencies offered for sale on the crypto market are included in that.
WHAT DO NFT DOES?
NFTs have been around for a while, but only recently have they gained popularity (and even hotter investment).
How do they function and what are they?
We first need to define the term “fungible” in order to understand non-fungible tokens (NFTs).
When something is fungible, it can be traded for another item of similar or equal value. Fiat currency would be a typical illustration (and even cryptocurrency). Because you can exchange it for items of equal value, it is fungible. If necessary, you can also exchange it for other money.
Contrarily, something that is non-fungible is unique and cannot be traded for another object of equivalent value. For instance, a diamond is non-fungible since there are no two identical diamonds in the world, and each one has a different value. One cannot be exchanged for another with equivalent value.
A blockchain-based cryptographic asset known as a non-fungible token was developed.
The fact that NFTs include distinctive identifying codes and metadata to distinguish one NFT from another sets them apart from cryptocurrencies, which are fungible tokens since they are all similar to one another.
Each NFT is distinct, thus they can’t be swapped or exchanged for equivalent value with other NFTs. As a result, every NFT is a unique item that cannot be duplicated and is therefore a digital collectible.
WHY DO BRANDS VALUE NON-FUNGIBLE TOKENS (NFT)?
Because they may be used to represent digital items like audio, video, and artwork, NFTs are crucial to brands. They are so adaptable that they may be used to symbolise a variety of other creative endeavours, including virtual worlds, fashion, and virtual real estate.
What connection does this have to your brand and marketing plan?
NFTs have created new opportunities for brand narrative and consumer engagement because of the widespread interest they have attracted, which, as you are aware, are the two key components of a successful marketing plan.
NFTs allow you to:
- Make distinctive brand experiences
- Promote interaction, raise interest in your brand and product, and enhance brand awareness.
- NFTs can ultimately enhance conversions and generate income for your business.
- Here are some examples of how brands are use NFTs to drive their marketing.
6 WAYS BRANDS ARE USING NFT
NFTs in marketing might be a challenging subject to understand. The best way to learn this, like other complex concepts, is to look at examples.
Here are some clever uses of NFTs by brands. Hopefully they’ll inspire you in some way.
- Taco Bell GIFs
According to research, 83% of millennials prefer to patronise companies that share their values. Because of this, businesses must publicly promote the causes they care about (and genuinely).
While Taco Bell has been doing this through their foundation for years, they went above and beyond by selling NFT GIFs with taco themes to benefit the Live Más Scholarship.
All of the GIFs vanished in less than 30 minutes after their 25 NFTs, called NFTacoBells, became offered for sale on Rarible (an NFT marketplace). The starting bid for each GIF was $1. The highest price paid for one of them was $3,646. Nevertheless, they all sold for thousands of dollars each.
Taco Bell made a wise decision by producing and marketing NFTs since they produced a lot of talk on social media and in the media, which is always good for business.
Using NFTs, you can accomplish two goals at once, similar to Taco Bell.
- Promote brand recognition
- Aid a worthwhile cause
Both of these powerful elements have the potential to boost sales for your brand.
Make sure you make a contact with an NFT Marketplace Development Company so they can assist you in turning your idea into a highly lucrative market.
2. RTFKT DIGITAL SNEAKERS
Looking for a technique to change the industry and establish your reputation?
NFTs can aid in achieving that.
This is what occurred when RTFKT, a little-known Chinese virtual sneaker company, created an NFT sneaker for the Chinese New Year and placed it up for auction.
The sneaker brought in an astounding $28,000.
That’s very good for a company that’s only been around for a couple of years, especially given that they sold a sneaker that can’t even be touched, much less worn. Despite how impressive this was, it fell well short of the $3 million they made from another NFT sneaker they created in conjunction with the 18-year-old artist, FEWOCiOUS.
NFTs are still in their early stages, so now is the ideal time for marketers to jump on board. It’s a fantastic approach to get people’s attention and assemble a following.
Take a hint from RTFKT as a marketer considering how to use NFT technology. To commemorate significant anniversaries and holidays, produce limited edition mementos, and use them in your marketing activities throughout certain seasons. You can give them away to the first X clients or even put them up for auction as separate goods.
3. GRIMES VIDEOS
Twenty minutes and six million bucks.
Grimes earned that much via an auction of 10 NFTs held on Nifty Gateway.
There is no doubt that there is interest in NFTs, and companies can take advantage of this enthusiasm to advertise their goods. You can, for instance:
Have your business represented in the auction by collaborating with artists or auction websites.
Make an NFT and donate the proceeds to charity.
Run a competition with NFTs as the prize (to generate leads).
It’s all about riding current trends and using your creativity to capitalise on the fervour surrounding them to promote your company.
4. KINGS OF LEON ‘WHEN YOU SEE YOURSELF’ ALBUM LAUNCH
Because there are so many bands and musicians, the music business has grown extremely competitive. It’s harder than it used to be to gain and maintain a devoted following.
The Kings of Leon managed to circumvent that.
They issued “When You See Yourself,” their record, as an NFT.
For this unique album release, The Kings of Leon are employing three different token types. One option includes a unique album bundle, and the other includes benefits for live performances. The third category of tokens includes unique audiovisual artwork.
Although the album is available across all music streaming services, the $50 NFT version was solely offered through YellowHeart.
There were no additional album tokens produced beyond the two-week period during which the NFTs could be purchased. As a result, the tokens became a tradable collectible.
Kings of Leon made music history by being the first group to release an album in an NFT format.
Furthermore, by giving their fans the chance to possess a digital item, it helped them win the hearts of their supporters. That is a really good strategy to encourage brand loyalty.
5. BEEPLE ARTWORK
Mike Winkelmann, who is essentially unknown in conventional art circles, has gained some notoriety.
At the time of the sale, he was the third-most expensive living artist after selling a JPG file for $69.3 million.
The file is the first digital-only NFT auctioned by Christie’s and is an artwork sold as a non-fungible token.
As the auction was about to expire, a frenzy of bids forced the two-week timed auction to be extended by 90 seconds.
What can brands take away from this?
Be quick to adopt novel concepts and technologies. You must be willing to take chances and make noise in order to outperform as the competition gets tougher every day.
6. NYAN CAT GIF
The Nyan Cat GIF first appeared on the internet ten years ago with a colourful bang. On the cryptocurrency auction website Foundation, the NFT version of the GIF created by its creator Chris Torres sold for almost $500,000.
That’s accurate. A vintage animated GIF that was auctioned for more than $500,000
But Chris didn’t stop there. He orchestrated an auction in which well-known memes were sold as NFTs. Bad Luck Brian, one of the memes, sold on Foundation for more than $34,000.
What lessons can businesses learn from this?
The takeaway from this is that customers are prepared to pay for exceptional experiences. Profit from this by making some of your greatest advertisements NFTs. Make an auction event where you sell them, and make sure to promote it well.
This will not only increase consumer awareness of your business but also enable you to connect with new consumers in the tech industry.
NFTs are great for giving your customers unforgettable experiences. They’re also a great way to interact with and engage your target market.
Nearly all businesses today require an online presence, which is why the NFT marketplace development market is expanding swiftly. A variety of NFT development services will be offered by each NFT Marketing Company, depending on their operational procedures and fee structures.
Even though the technology is still developing, marketers must keep an eye on it. You should explicitly look into how to use NFTs in your marketing strategies. You may, for instance, partner with NFT artisans to produce luxurious versions of your product or build unique advertising campaigns.
The final message is that NFT technology is unquestionably going to be a component of digital marketing and is here to stay.