NFTs is Proving to be a New Source of Revenue for Businesses

NFTs is Proving to be a New Source of Revenue for Businesses

NFT
by Editor's Desk
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In recent years, technology has advanced at breakneck speed. Blockchain is one area that has seen some of the most rapid advancements. That doesn’t just refer to Bitcoin, Ethereum, and the myriad of other cryptocurrencies for sale on the crypto market.  Let’s look at non-fungible tokens (NFTs) and how they might be used in marketing
NFT in business

In recent years, technology has advanced at breakneck speed. Blockchain is one area that has seen some of the most rapid advancements. That doesn’t just refer to Bitcoin, Ethereum, and the myriad of other cryptocurrencies for sale on the crypto market. 

Let’s look at non-fungible tokens (NFTs) and how they might be used in marketing efforts by brands.

What exactly is NFT? 

NFTs have suddenly been a big issue, even though they have been around for a few years (and even hotter investment).

What exactly are they, and how do they function?

We must first define the term “fungible” to comprehend non-fungible tokens (NFTs).

When something is fungible, it can be traded for something of equivalent or equal value. Fiat currency is a good example of this (and even cryptocurrency). It’s fungible because it can be exchanged for products of comparable value. If necessary, you can also exchange it for other money.

Non-fungible items, on the other hand, are one-of-a-kind and so cannot be swapped for equivalent. A diamond, for example, is non-fungible because no two gems are alike, and hence each has its value. Therefore, at equivalence, you can’t swap one for the other.

A non-fungible token is a cryptographic asset built on the blockchain. NFTs differ from cryptocurrencies in that they feature unique identifying codes and metadata that distinguish one NFT from another. Cryptocurrencies are fungible tokens since they are all identical.

Non-fungible items, on the other hand, are one-of-a-kind and so cannot be swapped for equivalent. A diamond, for example, is non-fungible because no two gems are alike, and hence each has its value. Therefore, at equivalence, you can’t swap one for the other.

A non-fungible token is a cryptographic asset built on the blockchain.

NFTs differ from cryptocurrencies in that they feature unique identifying codes and metadata that distinguish one NFT from another. Cryptocurrencies are fungible tokens since they are all identical. Because each NFT is one-of-a-kind, it cannot be swapped or exchanged for a similar NFT. As a result, each NFT is a digital collectible, a one-of-a-kind, non-replicable item.

That’s where the NFT craze originated. CryptoKitties, a hybrid of Tamagotchi and trading cards, erupted onto the market in 2017. Each kitten is one-of-a-kind and can be nurtured, duplicated, and exchanged for up to $140,000.

The NFT frenzy was formed, and interest in NFTs is only growing today.

Why are NFTs Important for Brands? 

The ability to represent digital items such as art, audio, and video is one of the key reasons NFTs are significant to businesses. In addition, they’re so adaptable that they may be utilized to represent a variety of different types of creative work, including virtual real estate, virtual worlds, fashion, and much more.

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

NFTs have opened up new means of brand narrative and customer contact, which are the two major pillars of an efficient marketing plan, thanks to the global attention they’ve produced.

Here are six ways Brands can use NFT as a part of their marketing – 

The concept of non-financial transactions (NFTs) in marketing might be difficult to grasp. The best method to understand the most complex concepts is to look at examples.

Here are a few creative ways brands are employing NFTs. Hopefully, these will provide you with some ideas.

  1. Kings of Leon’ When You See Yourself’ Album Launch

The music industry has become more competitive due to the large number of performers and bands available. However, building and maintaining a dedicated fanbase isn’t as simple as it once was.

The Kings of Leon devised a strategy to circumvent this. In the shape of an NFT, they released their album “When You See Yourself.”

For this one-of-a-kind record release, Kings of Leon are using three different types of tokens. One option includes a special record bundle, while the other includes benefits from live shows. Exclusive audiovisual art is featured on the third type of token. The album is available on all music platforms. However, the NFT edition was only sold for $50 on YellowHeart.

The NFTs were available for purchase for only two weeks, after which no further album tokens were generated. The tokens become a tradeable collection as a result of this move. The Kings of Leon made history by being the first band to release an NFT version. More importantly, it cemented their place in their followers’ hearts by allowing them to own a digital item. That’s a fantastic strategy to increase brand loyalty.

  1. Nayan Cat GIF 

The Nyan Cat GIF made a vibrant splash on the digital arena a decade ago. On the crypto auction site foundation, creator Chris Torres created an NFT version of the GIF, which sold nearly $500,000.

That’s correct—a vintage animated GIF sold for more than half a million dollars. Chris, on the other hand, didn’t stop there. He staged an auction in which legendary memes were sold as NFTs. Bad Luck Brian, one of the memes, sold for over $34,000 on the foundation.

  1. Beeple Artwork 

Mike Winkelmann, who was virtually unknown in mainstream art circles, has become something of a legend. He was the third most expensive living artist at the time of the auction when he sold a JPG file for $69.3 million. The file is the first digital-only NFT auctioned by Christie’s and is a piece of art sold as a non-fungible token.

  1. RTFKT Digital Sneakers

Are you looking for a way to establish a name for yourself and disrupt the market? NFTs can assist you in this endeavor. That’s what happened when RTFKT, a relatively unknown Chinese virtual shoe manufacturer, created an NFT sneaker for the Chinese New Year and auctioned it off.

The sneaker fetched a stunning $28,000 at auction. That’s extremely good for a brand that’s only been there for two years, especially since they sold a sneaker that can’t even be touched, let alone worn. However, even though this was impressive, it paled compared to the $3 million they made from another NFT sneaker they collaborated on with the 18-year-old artist FEWOCiOUS.

Because NFTs are still in their infancy, now is the best time for marketers to jump on board. It’s a terrific approach to get people’s attention and grow a following.

Take a cue from RTFKT if you’re a marketer looking for new ways to use NFT technology. For example, create limited edition memorabilia to commemorate significant occasions and holidays and utilize them in your holiday marketing initiatives. You can give them away to the first X number of consumers or sell them separately at an auction.

  1. Taco Bell GIFs 

According to research, 83 percent of millennials want to conduct business with companies that share their beliefs. As a result, brands must publicly support issues they believe in (and genuinely). Taco Bell’s foundation has been doing this for years, but they took it to a whole new level by selling taco-themed NFT GIFs to benefit the Live Más Scholarship.

All of the GIFs were gone within 30 minutes of putting their 25 NFTs (dubbed NFTacoBells) up for sale on Rarible (an NFT marketplace). Each GIF had a starting bid price of $1. They did; however, all sold for thousands of dollars, with one selling for $3,646.

Taco Bell made a wise decision in creating and selling NFTs since it produced a lot of attention in the mainstream media and on social media, which is always good for business.

  1. Grimes Videos 

In 20 minutes, I made six million dollars. Grimes made that much on a collection of ten NFTs he auctioned on Nifty Gateway. So people are interested in NFTs, and brands may capitalize on that desire to advertise their goods. 

You can, for example:

  • Make a deal with an artist or an auction site to have your brand featured in the auction.
  • Make an NFT and auction it for a good cause.
  • Run a contest (to generate leads) with NFTs as the prize.
  • It’s all about riding current trends and utilizing your imagination to capitalize on the buzz surrounding them to draw attention to your business.

What can brands learn? 

The takeaway here is that clients are prepared to pay for exceptional service. Take advantage of this by converting some of your most effective advertising into NFTs. Then, make an occasion where you auction them off and make sure it is extensively publicized.

Not only will this increase brand exposure, but it will also help you reach out to new tech audiences.

What is the Future of NFT? 

True, NFTs are still in their infancy, and their practical applications are still limited. People, on the other hand, adore them and are eager to spend money on them. So they’re here to stay, based on these clues.NFTs, like the blockchain technology that powers them, have the potential to play a key role in the future digital world. Non-fungible tokens have opened up new ways to interact with your audience and create memorable experiences for them, which is especially true for marketers.

Remember that most of the technology we use today (like social media) were once considered fads.

Yet, in today’s world, we rely on them for so many things. NFTs may appear to be a fad right now, but they offer several advantages (such as transparency and security) that overcome the limits of the present technology.

Key Takeaway 

NFTs are wonderful for giving your consumers unforgettable experiences. They’re also a fantastic opportunity to interact with and engage your target audience.

Brands must pay close attention to the technology while it is still in its infancy. More precisely, you should look into how you may use NFTs in your marketing campaigns. You can, for example, mint luxurious product designs, develop distinctive ad campaigns, or cooperate with NFT producers.

In the end, NFT technology is here to stay, and it will surely play a role in digital marketing.