By Migelie Luna on Jul 6, 2022 2:31:40 PM
NFT and cryptocurrencies are not unfamiliar concepts to anyone working in the digital marketing sector. We've all heard in recent years that businesses are increasingly incorporating NFTs and cryptocurrencies into their marketing plans.
It is hardly shocking considering that a survey claims the worldwide NFT market's transaction volume hit $44.2 billion in 2021 and is still increasing.
But first, let's take a moment to pause, breathe deeply, and consider how these digital tokens and digital marketing are related.
What is cryptocurrency?
It is a digital currency that may be used and fungible like other currencies and is kept in a digital wallet. Additionally, since cryptocurrencies are not exclusive, you can exchange or trade them.
NFT, however, is a very different situation.
NFTs are short for non-fungible tokens. As a result, there is only one of them in the entire world, and only one of them will ever exist. They are thus entirely unique.
Consider a Starbucks cup that was mass-produced as an illustration. They are readily available, and the more of them that are made, the more value they lose. The identical Starbucks plastic cup is available in every shop.
But consider a Van Gough work of art or even a limited-edition Starbucks cup that was held by Elvis Presley just before his passing.
Since there is only one of these in the entire globe, they cannot be replaced and cannot be fungible.
But why exactly are these tokens so important for digital marketing?
- They raise your brand's visibility and generate interest in it, which helps to increase brand recognition. Your brand's audience reach is increased and you can reach your target market by using NFTs as part of your marketing strategy. Social networking is the ideal platform for promoting your brand's merchandise.
- Customer loyalty is increased via NFTs and cryptocurrencies. Brands can develop closer, more intense relationships with their customers because of personalization. Ownership of an NFT strengthens the customer's loyalty to your brand because it allows for more direct and intimate contact.
- They promote community building and consumer involvement. By promoting user-generated content, your company may increase engagement. Additionally, taking into account community feedback gives your brand the ability to strengthen its ties to the neighborhood and offers opportunities to develop a marketing plan that will appeal to your target audience.
- They give your brand limitless creative freedom because NFTs can be any type of digital artwork, including JPEG, GIF, 3D animation, audio files, and more. Your brand can utilize all the benefits of virtual items thanks to NFT marketing.
Examples of NFT-using brands
The shoe company invested heavily in the metaverse and was an early adopter of NFTs. They've worked on NFT projects with musicians and the Bored Ape Yacht Club, introduced the immersive 3D realm NIKE LAND on Roblox, and registered trademarks for digital goods. Jumping on the trend of fusing IRL benefits with metaverse benefits, they even collaborated with the University of Oregon to release limited-edition Air Max 1s as both NFTs and actual sneakers. Furthermore, in December 2021 Nike purchased RTFKT, a well-known producer of virtual footwear, memorabilia, and experiences. In the coming year, Nike will undoubtedly release a number of fascinating and cutting-edge NFT concepts.
2. Coca Cola
On a digital antique Coca-Cola cooler, the "loot box" contained three branded NFTs: a bubble jacket to be worn in the Decentraland 3D virtual reality platform, a sound visualizer with the sounds of a Coca-Cola, and a friendship card with updated artwork from 1948. For NFT holders, many companies offer blockchain-based and IRL benefits. Coca-Cola handed the winning bidder a genuine, fully filled Coca-Cola refrigerator. The brand gave Special Olympics International more than $575,000 the NFTs brought in.
Italian clothing company Gucci appeared on the virtual catwalk in June, selling a recently created NFT that was based on its Fall/Winter 2021 collection in an online auction conducted by Christie's. The NFT, which is constructed as a three-channel movie playing on repeat and is based on Aria, a four-minute film created to complement a runway show, is described by Christie's as a combination of "dream-like landscape and effervescent energy." The earnings from the week-long auction, which had a final sale price of US$25,000, were given to UNICEF USA in order to fund the COVAX project of the charity.
McDonald's launched its first-ever NFT promotion to mark the return of the fast-food chain's limited-edition McRib to its menu in November. The biggest restaurant chain in the world released a small quantity of NFTs (named MCNFT) as a part of a digital collection of collectible artworks depicting the McRib in order to generate interest in the product's brief return and restricted availability. Only those who retweeted the brand's invitation could access the collection of 10 unique McRib NFTs; more than 21,000 people did so in a matter of hours, and approximately 93,000 had done so by the beginning of 2022. Now that's effective advertising.
In 2022 and beyond, the designer eyewear company plans to be a significant force in the metaverse. In addition to working on AR glasses with Meta (previously Facebook), the brand debuted its one and only NFT in October of last year, showcasing its recognizable Aviator sunglasses. The NFT was created by German artist Oliver Latta, known for his thought-provoking 3D motion patterns. The Italian Art Trust received revenues from the auction held on OpenSea.
NFTs are but one illustration of how society is gradually shifting to digital marketing and sales, as well as how we are giving digital assets precedence over physical ones.
Businesses need to move forward with this and develop the skills necessary to respond to these shifting digital trends.
Learn more about digital transformation, how to get your business ready for NFTs, and other potential changes that could have an immediate impact on marketing.
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