How Are Businesses Using NFT In Their Marketing Strategies?
Product marketing is difficult in the digital age. However, non-fungible tokens, or NFT, are already dominating the market. To gratify the modern consumer, a lot is required. Additionally, the task becomes more complicated when promoting and selling intangible goods and services. Several big international companies have already changed the industry, and more are trying to tokenize their goods and services as virtual assets.
Utilizing the Potential of NFTs
Non-Fungible Tokens, or NFTs, are created on a blockchain system and cannot be copied. NFTs have come a long way from representing real-world goods like limited-edition goods and artwork to tokenizing physical assets and making it safe and easy for businesses to sell or trade them without fraud. Even though most brands are increasingly focusing on NFTs for marketing, each company has distinct goals. However, some businesses use them to creatively tell their brand story and reach out to new consumers via the metaverse. Others use limited edition products to generate money and use it for the improvement of society, while some aim to sell them as NFTs and create new revenue streams.
NFT Marketing Around the World
Since 2021, businesses like Coca-Cola and Nike and musicians like Marshall Mathers have been purchasing NFTs to benefit from the innovation that NFTs provide. McDonald’s advertised McRib using NFT, a popular dish around the world. The restaurant chain gave out a small number of MCNFTs to create that buzz and get people’s attention. Before the public news, only 10 MCNFTs were given to people who shared the brand’s invitation tweet. Interestingly, at the beginning of 2022, it received many retweets. So, brands are improving gated premium offers by giving their customers access to unique brand offers through NFTs.
Anheuser-Busch is yet another example. Specific NFT holders from the beer giant’s subsidiary firm, Budweiser, were permitted entrance to an event called #NFTBeerFest held at its facility. Budweiser Heritage NFT or Royalty Collection NFT holders received complimentary beer, entertainment, and other gifts at the festival.
Virtual Goods Sales at a Record High
Although this is one of the use cases, NFTs are also a fantastic way to sell virtual goods. There are even fashion shows, with brands like Dolce & Gabbana, Tommy Hilfiger, Forever 21, and high-end fashion labels like that. In addition to encouraging attendees to interact with sponsors, it also encouraged them to purchase NFT products that were only available at the exhibition. NFTs are excellent for advancing social objectives and giving brands a competitive advantage. For instance, Ray-Ban, a market leader in sunglasses for many years, likewise adopted the NFT strategy and included a digital rendition of its recognizable sunglasses with aviators in the first and only NFT.
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Gucci serves as another illustration. It was created by well-known German 3D artist Oliver Latta and sold at auction on NFT marketplace OpenSea, with all revenues going to the Italian Art Trust. The Italian fashion business employed NFT-based marketing to benefit society and offer relief to the collapsing global medical industry in the wake of the COVID-19 outbreak. It advertised it’s newly created NFT using its Winter and Fall collections of 2021 as inspiration in an online auction run by Christie’s. The massive USD 25,000 proceeds from the same were given to UNICEF USA to support the organization’s COVAX campaign.
Notably, the United Nations International Children’s Emergency Fund (UNICEF) started selling a collection of 1000 NFTs to raise money and provide internet connection for students in schools around the world. MAC Cosmetics also sells NTFS collectibles to raise money for charities and help fight against HIV and AIDS worldwide. These are only a few examples; the list is very lengthy. With NFTs, there are no boundaries to your ability to innovate.
Also Read: Is the Art World’s Future in NFTs?
In India, the idea is still in its infancy. However, marketers are trying to comprehend how the NFT mechanism works. While latecomers can learn from the mistakes of their predecessor companies and adjust their strategies, early entrants will have to deal with the heat of a developing industry. The market has enormous potential. Therefore, you must give it a try. You will help keep track of businesses that use NFT to reach their target market and make changes to your marketing plan as needed. The investment in pursuing novel branding opportunities with NFTs is worthwhile, given the global growth of Web3 and Metaverse.