How are brands using NFTs for marketing?
Marketing products in the digital age is not an easy task. It takes a ton to satisfy the modern customer. Moreover, the task becomes more difficult when it comes to selling and marketing intangible products and services. But NFTs or Non-Fungible Tokens are already taking the space by storm Many multinational brands have already relocated, and others are trying their hand at tokenizing their products and services as virtual assets.
Power consumption of NFTs
But the question remains?
What exactly are NFTs and why are brands betting on them?
NFT or Non-Fungible Tokens are created on the blockchain setup and cannot be counterfeited. From representing real-world items like limited-edition products and art to the tokenization of tangible assets and enabling brands to sell or trade them in a secure and efficient environment and eliminate the possibility of scams, NFTs have come a long way. While most brands are increasingly looking to NFTs for marketing, each brand has different objectives. While some want to promote their limited edition products as NFTs and open up new revenue channels, others use it to raise money and improve society. On the other hand, some brands use it to creatively narrate their brand story and tap new audiences into the metaverse space.
Global NFT Marketing Drive
Corporations like Coca-Cola and Nike and artists like Marshall Mathers have been buying NFTs since 2021 to tap into the innovation of NFTs.
The McRib, an international delicacy, was promoted by McDonald’s through NFT. As a result, restaurant chains issue a limited number of MCNFTs to build that hype and add eyeballs.
Before the news was revealed, only 10 MCNFTs were made available to those who reshared the brand’s invitation tweet. Interestingly, it saw a large number of retweets in early 2022 As a result, brands are taking gated premium offers to another level by extending exclusive brand offer rights to their customers through NFTs.
Another example includes that of Anheuser-Busch. The beverage major hosted a #NFTBeerFest event at its brewery that allowed entry to certain NFT holders from its subsidiary Budweiser.
Budweiser Heritage holders who held NFTs or Royalty Collection NFTs were treated to free beer, performances and other freebies at the festival.
An all-time high virtual product sales
Although this is one use case, NFTs are a great way to sell virtual merchandise. Even fashion shows are organized at Metaverse, featuring luxury fashion brands such as Dolce & Gabbana, Tommy Hilfiger and Forever 21, among others. Not only did this help them increase brand engagement with the audience, it prompted viewers to purchase NFT merchandise that was exclusively a part of the event. NFTs are not only a means of giving brands a profitable edge but are also great for supporting social causes For example, Ray-Ban, which has dominated the sunglasses market for decades, followed the NFT path by showing a digital version of its iconic aviator sunglasses at the first and only NFT.
Created by Oliver Latta, a renowned German proactive 3D design artist, it was auctioned on the NFT marketplace OpenSea with the proceeds going to the Italian Art Trust.
Another example is Gucci. In the wake of the Covid-19 pandemic, the Italian fashion brand has used NFT-based marketing to benefit society at large, to provide relief to the collapsing global medical industry. It promoted newly minted NFTs inspired by its Winter and Fall 2021 collection in an online auction hosted by Christie’s. The same work, which was a whopping USD 25,000, was donated to UNICEF USA to help raise funds for its COVAX initiative.
Notably, the United Nations International Children’s Emergency Fund (UNICEF) has launched a collection sale of 1000 NFTs to increase fund pool and internet access for school students around the world. Mac Cosmetics also sells collectible NTFS to raise funds for organizations and help the global community fight HIV and AIDS.
These were just a few examples, and the list goes on super long. There’s no limit to the innovations you can make with NFTs.
Unveiling
The concept is still in its infancy in India. However, brands are trying their best to understand the workings of the NFT mechanism. Early entrants must withstand the heat of developing markets, while late entrants can learn from the mistakes of their predecessor brands and change their strategy.
There is a lot of potential in the market and you must test the waters.
You will help keep track of companies approaching their target audience through the NFT route and then tailor your marketing strategy accordingly. With Web3 and Metaverse adoption going global, NFTs are worth the investment in exploring new branding avenues.
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