Blockchain is undoubtedly one of the hottest technologies of the last decade and is making rapid strides to emerge as the technology to look forward to in the coming years. The common mistake that most individuals make is confusing blockchain and cryptocurrencies with one another. A matter of fact is that blockchain is the technology behind many digital products and services of which crypto is just one example. Non-Fungible Tokens (NFT) are now emerging as one of the most fantastic applications of blockchain.
NFTs have been making a lot of buzz in the digital space and have turned into one of the most desired digital assets in this era of online consumerism. NFTs have opened up an entirely new sector of the digital economy, allowing creators, brands, and artists to deliver irreplaceable digital assets that can have only a single owner at any given time. This is why brands readily accept NFT as a marketing tool to deliver a new range of experiences to customers, boost brand loyalty, and create online communities in new ways. Let’s understand how leading brands are using NFTs to drive market impact.
Importance of NFTs for Brands
NFTs are uniquely digital assets created with blockchain that ensures a distinct identifier and metadata for every NFT, making it distinct from others. Each NFT is authenticated cryptographically through blockchain, ensuring that the owner’s records are always present on the digital ledger. As NFTs are digital assets, there is no fixed value they command; hence their value is determined through auctions or by the owner.
Brands use NFTs to represent digital assets like videos, artwork, or pictures. Their versatility can be used to represent creative avenues like virtual fashion or real estate. Due to the buzz created by NFTs, brands enjoy novel avenues of brand storytelling and customer interactions. NFTs are enabling the brands too,
- Enhance brand awareness.
- Develop unique brand experiences.
- Increase conversions to boost revenues.
- Encourage brand interaction.
- Boost customer interest in the brand.
How are brands using NFTs to Drive Market Impact?
Here are some examples of how brands are using NFTs to drive market impact: –
1. NFTaco Bell
Taco Bell is one of the leading food brands across the world and is known for its interesting digital marketing strategies. In 2021, to mark the occasion of potatoes returning to the food menu, Taco Bell launched 25 NFTs, making it the first fast food chain to join the NFT trend. Surprisingly, all the NFTs were claimed within half an hour of the launch, and the highest bid went up to $3,646 while the starting bid was $1. These NFTs are presently trading at around 10 ETH (Etherium). The buzz generated by creating and selling NFTs helped the company gain considerable attention on digital and mainstream media to drive brand awareness. Moreover, Taco Bell announced that entire profits from the initial sale of NFTs and subsequent resales would be used to sponsor the Live Más Scholarship program.
2. ASICS Sunrise Red
ASICS was the first footwear and sports apparel brand to foray into NFTs through its Sunrise Red campaign. Through this campaign, the company offered certain limited-edition digital sneakers and limited gold edition items for auctions. When asked, the company added that their mission here is not to reap the immediate benefits through the auction. Still, it is a first step towards accomplishing the mission to create a future where digital goods promote physical activity. The proceeds from the campaign were used to fund the ASICS Digital Goods Artist-in-Residence program. The brand awareness thus generated helped the brand considerably in its marketing efforts.
3. Beeple Artwork
Mike Winkelmann is considered a legend in the digital art space, while his presence in the mainstream art industry is virtually non-existent. He became the third most valuable living artist when his JPEG was sold for $69.3 million in an auction. This JPEG was sold as an NFT and became their first-ever digital-only NFT auctioned by Christie’s. The interest in the auction peaked just 90 seconds before the auction was to finish. This event encouraged brands to embrace new technologies to ward off fierce competition through disruptive risk-taking abilities.
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4. Nyan CAT GIF
When Chis Torres created and auctioned the NFT version of the famous Nyan Cat GIF, few would have imagined it selling for half a million dollars on ‘Foundation.’ This event inspired marketers to create unique experiences for customers by converting some of the best ads into NFTs, as many customers are willing to pay for them.
While NFTs are relatively new compared to other digital marketing techniques, the potential they offer for brands is incredible. Marketers should certainly consider NFTs as an extension of their marketing strategies to stand out from their competitors.