Why Are Non-Fungible Tokens (NFTs) Important to Brands?

Non-Fungible Tokens (NFTs)
07 Apr 2021

Nfts (Non-Fungible Tokens) are gaining popularity these days. One of the main reasons NFTs are important to brands is that they can be used to represent digital files, such as art, videos, and audio. They are so adaptable, they can be used to represent other forms of creative artwork like virtual real estate, virtual worlds, fashion, and many more.

What does this have to with your brand and marketing strategy?

Thanks to the global interest they’ve generated, NFTs have opened up new ways of brand storytelling and consumer interaction, which, as you know, are the two main pillars of an effective marketing strategy.

With NFTs, you can:

•             encourage interaction

•             create interest in your brand and product

•             increase brand awareness

•             create unique brand experiences

Ultimately, Buying NFTs can help you increase conversions and drive revenue.

Here are ways brands are using NFTs to power their marketing.

6 Ways Brands Are Using NFTs

The concept of NFTs in marketing might be little bit difficult to understand. But we can understand this concept with the help of examples.

Here are some nifty ways brands are using NFTs. Hopefully, you’ll get some inspiration from them.

  1. Taco Bell GIFs
Taco Bell GIFs

Research shows that 83 percent of millennials prefer to do business with brands that align with their values. That’s why brands need to support causes they believe in openly (and genuinely).

While Taco Bell has been doing this for years through their foundation, they took it to a whole new level by selling taco-themed NFT GIFs to support the Live Más Scholarship.

Within 30 minutes of putting their 25 NFTs up for sale on Rarible (an NFT marketplace), all the GIFs were gone. Each GIF started at a bidding price of $1. However, they all sold for thousands of dollars each, with one going for as much as $3,646.

Creating and selling NFTs was a great move on Taco Bell’s part as it generated a lot of buzz on mainstream media and social media; that’s always good for business.

Like Taco Bell, you can use NFTs to kill two birds with one stone:

  • drive brand awareness
  • support a good cause

Both are potent factors that can help drum up business for your brand.

2. RTFKT Digital Sneakers

RTFKT Digital Sneakers

Searching for an approach to disturb the market and become famous?

NFTs can assist you with doing that.

That is the thing that 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 an incredible $28,000.

That is very amazing for a brand that is scarcely two years of age, particularly considering they sold a sneaker that can’t be touched, not to mention worn. Amazing as this was, it was still route behind the $3 million they produced from another NFT sneaker they planned as a team with the 18-year-old artist, FEWOCiOUS.

With NFTs still in their earliest stages, this is the ideal time for marketer to join the bandwagon. It’s an incredible method to command notice and build a tribe of followers.

As a marketer considering approaches to use NFT technology, you can follow RTFKT. Make restricted memorabilia to special achievements and occasions, and use them in your marketing campaigns around those holiday seasons. You can part with them to the primary X number of clients or even auction them off as independent items.

3. Grimes Videos

Grimes Videos |Naxtre

Six million dollars in 20 minutes.

That’s how much Grimes made from a collection of 10 NFTs auctioned on Nifty Gateway.

It’s clear that people are interested in NFTs, and brands can leverage that interest to market their products. For example, you can:

  • Partner with artists or auction sites and have your brand present in the auction.
  • Create an NFT and auction it for charity.
  • Run a contest (for lead generation) with NFTs being the prize.

Marketing is all about riding current trends and using your creativity to harness the excitement around them to draw attention to your brand.

4. Kings of Leon ‘When You See Yourself’ Album Launch

Kings of Leon ‘When You See Yourself’ Album Launch

With so many musicians and bands around, the music industry has become very competitive. Building and keeping a loyal fanbase isn’t 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-of-its-kind album release. One type features a special album package, while the second offers live show perks. The third type of token features exclusive audiovisual art.

While the album is available on all music platforms, the NFT version was only available on YellowHeart, priced at $50.

The sale of the NFTs was only open for two weeks, after which no more album tokens were created. This move made the tokens a tradeable collectible.

Being the first band to release an NFT version of an album put the Kings of Leon in the history books.

More than that, it put them in the hearts of their fans by allowing them to own a digital collectible. Now that’s an excellent way of fostering brand loyalty.

5. Beeple Artwork

Beeple Artwork

Virtually unknown in mainstream art circles, Mike Winkelmann has become something of a legend.

He sold a JPG file for $69.3 million, making him the third-most-expensive living artist at the time of the auction.

The file is a piece of art sold as a non-fungible token and is the first digital-only NFT auctioned by Christie’s.

The two-week timed auction had to be extended by 90 seconds as a flurry of bids came in when the auction was about to close.

What lessons can brands learn from this?

Be quick to embrace new technologies and ideas. With the competition becoming fiercer with each passing day, you must be willing to take risks and be disruptive to outperform.

6. Nyan Cat GIF

Nyan Cat GIF

That’s right. An animated GIF from the past sold for over half a million dollars.

Chris, however, didn’t stop there. He organized an auction where classic memes are being auctioned off as NFTs. One of the memes, Bad Luck Brian, sold for over $34,000 on Foundation.

What can brands take away from this?

The lesson here is that your customers are willing to pay for great experiences. Capitalize on this by turning some of your best ads into NFTs. Create an event where you auction them off and make sure to publicize the event well.

Not only will this boost your brand awareness, but it will also help you reach new audiences in the tech space.

The Future of NFTs

Of course, NFTs are still moderately new, and their practical use is as yet restricted. Nonetheless, individuals love them and will spend on them. These are certain markers that they’re setting down deep roots.

Like blockchain technology driving them, NFTs could play a significant role in the digital landscape of the future. That is especially valid for advertisers and marketers as non-fungible tokens have opened up new roads for collaborating with your audience and making essential encounters for them.

Keep in mind, most regular technology we use today (like social media) seemed like prevailing fashions when they began.

However today, we rely upon them for such countless things throughout everyday life. NFTs may appear to be a trend and craze today, yet they bring to the table a ton of gainful highlights (like straightforwardness combined with security) that break the limits of current technologies we’re utilizing.

Conclusion

NFTs are fabulous in making vital encounters for your clients. They’re additionally an incredible method of engaging with and interacting with your target audience.

While the innovation is as yet in its outset, brands need to give close consideration to it. All the more explicitly, you need to explore ways you can use NFTs in your showcasing methodologies. For instance, you can mint extravagance plans of your product, make noteworthy promotion crusades, or work together with NFT makers.

The bottom line is that NFT technology is here to stay, and it’s undoubtedly set to be a part of digital marketing.

Are NFTs a fad? Or are they here to stay?