How brands are using NFTs for marketing
Because consumers are spending more money on digital assets and consuming more virtual content, brands are looking for ways to use NFTs to market their goods and services. Let’s evaluate their worth in relation to your possible branding campaigns.
NFTs have already transformed the market and encouraged numerous multinational corporations to experiment with tokenizing their products and services as virtual assets. NFTs have already completely changed the market in the digital age, where the challenge of marketing intangible and virtual products and services keeps marketers on their toes.
So what are NFTs, and why are brands interested in using them to promote themselves more effectively? NFTs, or non-fungible tokens, are unique cryptographic tokens that are only available on a blockchain network and cannot be replicated. By reflecting real-world things like art or limited-edition products, the tokenization of tangible assets enables businesses to produce, sell, or trade them in a secure and efficient environment and eliminates the possibility of fraud.
How NFTs can be used in marketing?
Each brand has a different goal in mind, even when the majority of brands are increasingly embracing NFTs for marketing. While some see the potential for using NFTs to sell their limited-edition goods and open up new revenue streams, others utilize NFTs to raise money for charitable, social, or environmental causes. Others are using them in the metaverse to communicate the brand’s message and engage with young people. Here are a few examples.
Intriguingly, Mcdonald’s, a renowned fast-food franchise from the 1950s, has a reputation for bringing back its classic goods after discontinuing them for one reason or another. For a more accurate comparison, Indians might recall how they used to enjoy potato wedges in the early 2000s, but they were eventually discontinued and just recently returned to McDonald’s restaurants in India. Similar to how McRib, an internationally popular dish, was long off the shelves, McDonald’s advertised its short-term return offer through NFT. The restaurant chain distributed a small amount of McNFTs in an effort to generate interest in the item’s brief reappearance. Since breaking the announcement, only individuals who shared the brand’s invitation tweet have had access to the collection of the 10 McNFTs. By the beginning of 2022, it has received more than 90,000 retweets, which is a staggering quantity.
The Italian fashion company Gucci was the first to employ NFT-based marketing for the benefit of society as a whole in order to offer relief to the collapsing global medical business against the backdrop of the Covid-19 pandemic. It advertised its recently created NFT using inspiration from its Winter and Fall collection of 2021 in Christie’s online auction. A whopping USD25,000 of the NFT’s final sale proceeds were given to UNICEF USA to support the organization’s COVAX campaign.
Besides, the United Nations International Children’s Emergency Fund (UNICEF) started selling its collection of 1000 NFTs in an effort to raise money to support schoolchildren’s access to the internet all over the world.
In the form of NFTs, brands can also grant their customers exclusive brand offer rights, elevating gated premium offers to a new level. Anheuser-Busch, a leading beverage company, staged the #NFTBeerFest event at its main brewery and allowed some NFT holders from its subsidiary company Budweiser access. Holders of a Royalty Collection or Budweiser Heritage Can NFT received free admission, entertainment, and other benefits to the festival. Oliver Latta, a well-known German proactive 3D artist, designed the NFT, which was then auctioned off on the OpenSea NFT marketplace with all earnings going to the Italian Art Trust.
Should you consider NFTs for marketing?
NFTs expose the holder to the possibility of total loss because they do not have a fixed value. This may deter a lot of potential investors from making an investment. Consequently, for this sector to flourish with certainty, a governing organization is required.
It would take some time for the brands to fully comprehend how the NFT process operates, especially in countries where the concept is still in its infancy. Similar to how it is generally accepted for any technology, the early entrants in the market will have to contend with the challenges of market development while the late entrants learn from the mistakes made by their predecessor companies to avoid making the same mistakes.
However, if you don’t put yourself to the test, you won’t fully realize your potential. In the Web3 and Metaverse era, when virtual reality is becoming widely used, NFTs are important in order to consider potential branding strategies.
Therefore, it is advisable to have attention to how many businesses are reaching out to their target audience through NFTs in order to draw inspiration for your own NFT-based marketing plan.
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Disclaimer: The information herein is for educational purposes only and should not be considered financial, investment, or trading advice. Please conduct your own research and due diligence before making investment decisions. You understand that you are using the Information provided at your own risk.