How manufacturers use NFTs
Technology has advanced at warp speed in recent years.
One area that has made some of the fastest advances is blockchain.
This doesn't just mean cryptocurrencies like Bitcoin, Ethereum and the multitude of other cryptos that are sold in the crypto market.
Let's look at non-fungible tokens (NFTs) and how brands can use NFTs in their marketing campaigns.
What are NFTs?
While they've been around for a couple of years, NFTs have become a hot topic (and an even hotter investment) lately.
What are they and how do they work?
To understand non-fungible tokens (NFTs), we must first define the word "fungible".
If something is fungible, it can be exchanged for something of equal or similar value. A typical example would be fiat currency (and even cryptocurrency). It is fungible because you can exchange it for goods of equal value. You can also exchange it for another currency if necessary.
On the other hand, something that is not fungible is unique and therefore cannot be exchanged equally. For example, a diamond is not fungible because no two diamonds in the world are the same and thus each has its own value. They cannot act equally against each other.
A non-fungible token is a cryptographic asset created using blockchain technology.
What sets NFTs apart from cryptocurrencies (which are fungible tokens because they are identical to one another) is that they have unique identification codes and metadata to distinguish one NFT from another.
As each NFT is unique, it cannot be traded or exchanged on an equal footing with any other NFT. The result is that each NFT is a digital collector's item, a unique asset that cannot be replicated.
This is where the enthusiasm for NFTs began. In 2017, CryptoKitties, a mix of Tamagotchi and trading cards, exploded. Each kitten is unique and can be raised, reproduced, and traded – some for up to $ 140,000.
NFT mania was born and today interest in NFTs is only growing.
Why are non-fungible tokens (NFTs) important for brands?
One of the main reasons NFTs are important to brands is because they can be used to represent digital files such as art, audio, and video. They are so versatile that they can be used to represent other forms of creative work such as virtual real estate, virtual worlds, fashion, and more.
What does this have to do with your branding and marketing strategy?
Thanks to the global interest they have generated, NFTs have opened up new avenues of brand storytelling and consumer interaction, which, as you know, are the two main pillars of an effective marketing strategy.
With NFTs you can:
- create unique brand experiences
- Increase brand awareness
- Promote interaction
- Generate interest in your brand and your product
Ultimately, NFTs can help you increase conversions and increase sales.
Here's how brands are using NFTs to power their marketing.
6 ways brands are using NFTs
The concept of NFTs in marketing can be a little difficult to understand. As with most hard-to-understand things, it's best to look at examples.
Here are some nifty ways brands are using NFTs. Hopefully they will inspire you.
1. Taco Bell GIFs
Research shows that 83 percent of millennials prefer doing business with brands that match their values. Therefore, brands need to support causes they openly (and sincerely) believe in.
While Taco Bell has been doing this for years through their inception, they have taken it to a whole new level by selling Taco-themed NFT GIFs to support the Live Más Scholarship.
Within 30 minutes of their 25 NFTs (called NFTacoBells) going up for sale on Rarible (an NFT marketplace), all of the GIFs were gone. Each GIF started with a bid price of $ 1. However, they all sold for thousands of dollars each, one of which went as high as $ 3,646.
Creating and selling NFTs was a smart move by Taco Bell as it got a lot of buzz in mainstream and social media. It's always good for business.
As with Taco Bell, you can kill two birds with one stone with NFTs:
- Increase brand awareness
- support a good cause
Both of these are important factors that can help boost your brand's business.
2. RTFKT Digital Sneakers
Are you looking for a way to disrupt the market and make a name for yourself?
NFTs can help you with this.
It happened when a little-known Chinese virtual sneaker brand called RTFKT designed an NFT sneaker for the Chinese New Year and put it up for auction.
The sneaker sold for a whopping $ 28,000.
That's pretty impressive for a brand barely two years old, especially considering they sold a sneaker that can't be touched or even worn. As impressive as this was, it was still way below the $ 3 million they generated from another NFT sneaker they designed in collaboration with 18-year-old artist FEWOCiOUS.
With NFTs still in their infancy, this is the time for marketers to join the bandwagon. It's a great way to get attention and build a following of followers.
As a marketer considering ways to use NFT technology, RTFKT can be your guide. Create limited memorabilia to celebrate special milestones and holidays and use them in your marketing campaigns for those holidays. You can pass them on to the first X number of customers or even auction them off as stand-alone products.
3. Grimes videos
Six million dollars in 20 minutes.
This is how much Grimes was made from a collection of 10 NFTs auctioned on Nifty Gateway.
It is clear that people are interested in NFTs and brands can use that interest to market their products. For example, you can:
- Collaborate with artists or auction sites and have your brand featured in the auction.
- Create an NFT and auction it off for charity.
- Run a competition (for lead generation) where NFTs are the prize.
Marketing is about following current trends and using your creativity to take advantage of the excitement around them and draw attention to your brand.
4. Kings of Leon "When You See Yourself" album launch
With so many musicians and bands, the music industry has become very competitive. Building and maintaining a loyal fan base is no longer as easy as it used to be.
The Kings of Leon found a way to get around that.
They released their album "When You See Yourself" in the form of an NFT.
The Kings of Leon are using three types of tokens for this first album release. One type offers a special album package while the second offers live show benefits. The third type of token offers exclusive audiovisual art.
While the album is available on all music platforms, the NFT version was only available on YellowHeart at a price of $ 50.
NFT sales were only open for two weeks, after which no album tokens were issued. This move made the tokens a tradable collector's item.
As the first band to release an NFT version of an album, the Kings of Leon entered the history books.
In addition, it put them in the hearts of their fans by allowing them to own a digital collectible. This is a great way to build brand loyalty.
5. Beeple artwork
Mike Winkelmann is practically unknown in the current art circles and has become a legend.
He sold a JPG file for $ 69.3 million, making it the third most expensive living artist at the time of the auction.
The file is a work of art sold as a non-fungible token, and it will be the first NFT to be auctioned only in digital form by Christie.
The two-week timed auction had to be extended by 90 seconds as a flood of bids came in as the auction was close to closing.
What lessons can brands learn from this?
Quickly adopt new technologies and ideas. As the competition gets tougher every day, you need to be willing to take risks and disrupt the outperformance.
6. Nyan Cat GIF
A decade ago, the Nyan Cat GIF broke into the digital scene with a colorful bang. Creator Chris Torres created an NFT version of the GIF that sold for over $ 500,000 on the Foundation crypto auction site.
Correctly. An animated GIF from the past sold for over half a million dollars.
Chris didn't stop there, however. He organized an auction where classic memes are auctioned off as NFTs. One of the memes, Bad Luck Brian, sold on Foundation for over $ 34,000.
What can brands take from it?
The lesson here is that your customers are ready to pay for great experiences. Take advantage of this by converting some of your best ads into NFTs. Create an event that you will auction them off and get the event well known.
This not only increases your brand awareness, but also helps you reach new target groups in the technology sector.
The future of NFTs
Sure, NFTs are still relatively new and their practical uses are still limited. However, people love them and are ready to spend on them. These are sure indicators that they will stay here.
Like the blockchain technology that powers them, NFTs could play an important role in the digital landscape of the future. This is especially true for marketers as non-fungible tokens have opened up new ways to interact with your audience and create memorable experiences for them.
Remember, most of the popular technologies we use today (like social media) started out like fads.
But today we depend on them for so many things in life. NFTs may seem like madness today, but they bring many useful features (like transparency coupled with security) to the table that break the boundaries of the current technologies we are using.
NFTs are fantastic for creating memorable experiences for your customers. They are also a great way to connect and interact with your target audience.
While technology is still in its infancy, brands need to pay close attention to it. In particular, you need to look for ways in which you can use NFTs in your marketing strategies. For example, you can shape luxury designs of your product, create memorable advertising campaigns, or collaborate with NFT creators.
The bottom line is that NFT technology will stay here and will no doubt be part of digital marketing.
Are NFTs a Fad? Or are you here to stay?
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