In the digital era, marketing products is no easy feat. It takes a ton to satisfy the modern customer. Moreover, the job gets tougher when it comes to selling and marketing intangible products and services. But NFTs or non-fungible tokens are already taking the space by storm. Many multinational brands have already revolutionized the space, and others are trying out their hands at tokenizing their products and services as virtual assets.
Leveraging The Power of NFTs
But the question remains?
What exactly are NFTs, and why are brands betting high stakes on them?
NFTs or Non-Fungible Tokens are made on a blockchain setup and cannot be duplicated. From representing real-world items like limited-edition products, and art, to tokenization of tangible assets and enabling brands to sell or trade them in a secure and efficient environment and eliminate the possibility of scams, NFTs have come a long way. While most brands are increasingly looking at NFTs for marketing, each brand has different purposes. While some wish to promote their limited edition goods as NFTs and open new revenue channels, others are using them to raise money and use it for society’s betterment. On the other hand, some brands use them to narrate their brand story creatively and tap newer audiences in the metaverse space.
Global NFT Marketing Drives
Corporations like Coca-Cola and Nike and artists like Marshall Mathers have been buying NFTs since 2021 to tap into the innovation NFTs bring.
McRib, a highly relished dish internationally, was promoted by McDonald’s through NFT. As a result, the restaurant chain issued a limited number of MCNFTs to create that hype and garner eyeballs.
Before letting out the news, only 10 MCNFTs were made available to those who reshared the brand’s invitation tweet. Interestingly, it saw a whopping number of retweets at the start of 2022. As a result, brands are taking gated premium offers to another level by extending exclusive brand offer rights to their customers via NFTs.
Another example includes that of Anheuser-Busch. The beverage major organized an #NFTBeerFest event at its brewery that allowed entry to specific NFT holders from its subsidiary company Budweiser.
Holders of Budweiser Heritage that held NFT or Royalty Collection NFT were given free beers, performances, and other freebies at the festival.
Virtual Merchandise Sale on An All-Time High
While this is one of the use cases, NFTs are a great way of selling virtual merchandise too. Even fashion shows are hosted in Metaverse, wherein luxury fashion brands like Dolce & Gabbana, Tommy Hilfiger, and Forever 21, among others. Not only did it help them drive brands’ engagement with the visitors, it also urged visitors to buy NFT merchandise that was exclusively a part of the show. NFTs are not just a means for providing a profitable edge to brands but are also great for supporting social causes. For example, Ray-Ban, which has ruled the sunglasses market for decades, also followed the NFT path to feature a digital version of its iconic Aviator Sunglasses in the first and only NFT.
Made by a reputed German proactive 3D designs artist Oliver Latta, it was auctioned on NFT marketplace OpenSea with its proceeds directed to Italian Art Trust.
Another example is that of Gucci. To provide respite to the collapsing global medical industry in the wake of the Covid-19 pandemic, the Italian fashion brand used NFT-based marketing for the welfare of society at large. It promoted its freshly made NFT taking inspiration from its Winter and Fall collection of 2021 in an online auction organized by Christie’s. Proceed of the same, which were a whopping USD 25,000, were donated to UNICEF USA to help raise funds for its COVAX initiative.
Notably, the United Nations International Children’s Emergency Fund (UNICEF) also began the sale of 1000 NFTs collection to pool funds and boost internet access for school students across the globe. MAC Cosmetics also sells collectible NTFS to raise funds for organizations and help the global community combat HIV and AIDS.
These were just a few instances, and the list goes super long. There is no limit to the innovation you can do with NFTs.
Wrapping Up
The concept is still in its early stages in India. However, brands are trying their best to understand the NFT mechanism’s functioning. The early entrants will need to bear the heat of the developing market, whereas the late joiners can learn from the mistakes of their predecessor brands and tweak their strategies.
There is immense potential in the market, and you surely need to test out the waters.
You will help keep track of companies approaching their target audience via the NFT route and then devise your marketing strategy accordingly. With Web3 and Metaverse adoption going global, NFTs are worth the investment in exploring new branding avenues.
