Technology has advanced significantly over the past few years. While every industry has made significant changes, the blockchain and cryptocurrency industries in particular seem to have made the most rapid advancements. At this moment in time, we’ve already advanced past cryptocurrencies like Bitcoin and Ethereum. Crypto enthusiasts are now investing in a new kind of token referred to as non-fungible tokens (NFT).
Bitcoin is a fungible token, meaning that each bitcoin has the same value. Simply put, it is a blockchain-based digital token that serves as proof of ownership for the person who holds it. Each token is one-of-a-kind because it has its own set of metadata that can never be duplicated or replaced. On the other hand, the traits and values of one NFT will be completely different from that of another.
For better understanding, a real-life example of a fungible token is the currencies we use to pay for things every day. Whatever currency it is, it will always be currency. This means that it is fungible. On the other hand, a plane ticket is non-fungible. Each plane ticket is unique in terms of information and characteristics. What’s more, you cannot exchange your plane ticket with another traveler. NFTs can be any type of digital device. Anything can be tokenized, including a personal photograph, a tweet, or a two-second video of a person. The most common types of NFTs are crypto art, in-game assets, virtual land, music, and crypto collectibles.
While NFTs are somewhat related to cryptocurrency, they are not cryptocurrencies. Rather, an NFT is a type of asset that can be purchased with cryptocurrency but behaves differently from Bitcoin or Ethereum. Every NFT is distinct and one-of-a-kind. Ethereum and NFT technology have frequently been used together. Ether is the native currency of the Ethereum blockchain and is a cryptocurrency similar to Bitcoin. It’s also used for NFT creation and transactions, and it’s the most widely used blockchain for NFTs right now, particularly for CryptoArt.
The reason why NFTs are valuable is that they allow for proof of ownership in the digital world. To understand this better, consider this: only one person can own the original Mona Lisa, but millions of people can own copies of it. However, the real Mona Lisa is more valuable. Digital collectibles and artwork work the same way. There was no way to prove the ownership or authenticity of digital artwork or collectibles before the invention of NFTs.
The principle of scarcity now exists in the digital world thanks to blockchain technology and NFTs. When a digital asset is tokenized, it gains value because it is possible to prove its authenticity and ownership. You can also buy and sell it multiple times. This is because each NFT is rare, one-of-a-kind, and indivisible. If the creator wants to make many of them, there can be several NFTs of the same trading card or art piece. In such cases, the first few hundred editions are usually the most expensive.
The ability to showcase and represent digital files such as art, audio, and video is one of the core reasons NFTs are important to brands. They’re so adaptable that they can be used to represent various types of creative work, including virtual objects, real estate, fashion, and much more.
What does all of this have to do with marketing strategy?
NFTs have opened up a new form of brand storytelling and consumer interaction. These are the two main pillars of an effective marketing strategy. You can use storytelling and interaction to create unique experiences, increase brand awareness, encourage interaction, and create interest in your brand and its products. Ultimately, both these strategies can help increase conversions and drive revenue.
Let us now look at how some brands have successfully used NFTs as part of their marketing strategies.
1) Taco Bell
According to research, 83% of millennials tend to gravitate towards companies that share similar values to their own. As a result, to gain attention and draw in more sales, brands must publicly and genuinely support causes they believe in.
Taco Bell’s foundation has been known to do this for several years, but it took its philanthropy one step further by selling taco-themed NFT GIFs to benefit their Live Más Scholarship. The GIFs their team created were auctioned off within 30 minutes of putting their 25 NFTs (dubbed NFTacoBells) up for auction on Rarible (an NFT marketplace). Even though each GIF had a starting bid price of $1, they ended up selling for thousands, with one art piece selling for $3,646.
Taco Bell made a good business decision by creating and selling NFTs because it generated a lot of buzz in the mainstream media and social media.
You can adapt Taco Bell’s strategies with their NFTs to increase brand awareness while also supporting a good cause. Both can help you to win more clients over and boost your sales.
2) RTFKT Digital Sneakers
NFTs can help a brand to disrupt its market and establish a name for itself in the industry.
The sportswear industry is highly saturated with many brands. RTFKT – a relatively unknown Chinese virtual sneaker brand – created and auctioned off an NFT sneaker for the Chinese New Year. The sneaker managed to fetch $28,000 at auction.
This is especially impressive for a brand that has only existed for the past two years and created a sneaker that cannot even be touch, let alone worn. To add to that, the company was also able to get $3 million for an NFT sneaker That they made in collaboration with 18-year-old artist FEWOCiOUS.
With NFTs still in the early stages, this is the best time for companies to get involved in the market. Drawing inspiration from other existing companies is an excellent way to get people’s attention and grow a fan base. For companies and brands looking to set themselves apart from the competition, RTFKT would make a superb muse for using NFT technology. RTFKT leveraged FOMO by producing limited edition memorabilia to commemorate a significant event and holiday. This caused potential buyers to jump at the chance of purchasing the NFT before it disappeared.
Grimes is known as being Elon Musk’s “ex-partner.” She’s earned accolades for her work as a musician. She’s also renowned as one of the only people to make 6 million dollars in 20 minutes through NFTs after she auctioned a collection of 10 NFTs on the NFT marketplace, Nifty Gateway.
People are interested in NFTs. Since they are all the rage at the moment, people get excited about new NFT products being introduced into the market. Since new NFT products are being unveiled so often, it’s important for new brands to capitalize on that interest right from the get-go. The best way to do this is to adopt an aggressive marketing and PR strategy from the start. For example, you could collaborate with artists or auction sites to get your brand featured in an auction. Once you’ve created an NFT, you can either auction it off for charity or hold a contest to generate leads with NFTs as the prize.
A good marketing strategy capitalizes on current trends while remaining creative enough to draw attention to the brand being promoted.
4) Kings of Leon album launch
Since there are many emerging music artists, the music industry has become highly competitive. It is not easy to build and then maintain a loyal fanbase. Even artists and bands who have been in the industry for years have had to find new ways to keep their existing fans and attract new ones.
In order to achieve this, the band Kings of Leon devised a unique strategy. They released their album “When You See Yourself” in the form of an NFT. This one-of-a-kind album release gave fans a chance to choose from three different types of tokens. They could choose between a special album package, benefits from live shows, or exclusive audiovisual art. The band also plugged into the FOMO affect – all three types of tokens were only available for purchase for two weeks. As a result, they became a tradable collectible. The Kings of Leon made history by being the first band to release an NFT version of an album. More importantly, this album solidified its place in the hearts of its fans by allowing them to own a digital collectible. This was an excellent way to boost brand loyalty.
5) Nyan Cat GIF
A decade ago, we were all introduced to the Nyan Cat GIF. As one of the first of its nature, it made a colorful splash on the digital scene. To keep it relevant and forever in our hearts, creator Chris Torres created an NFT version of the GIF. This NFT sold for over $500,000 on the crypto auction site foundation. Beyond that, Chris also held an auction for NFTs of other classic memes like Bad Luck Brian, which sold for over $34,000.
What this GIF demonstrated is that NFT enthusiasts are willing to pay a premium for exceptional service. You can use this knowledge to your advantage by converting your existing content, especially ads and other visuals, into NFTs. If you choose to, you can also hold an auction to reach new audiences in the tech industry and raise brand awareness.
We are all familiar with Atari. The company is responsible for introducing home console gaming to the masses. They then proceeded to saturate the gaming industry, nearly putting all their competitors out of business.
However, a series of products failed to live up to the hype and survive multiple ownership changes. Infogrames Games bought the company in the early 1990s and renamed it Atari SA. Their most significant foray into the gaming world was the recently relaunched VCS console.
Since its relaunch, the company decided to expand its focus to include other industries rather than gaming alone. In 2020, Atari gave the green light to create and launch a crypto-based online casino along with its own coin – The Atari Token – and a number of other NFTs. The launch of the casino brought the company’s most popular games, including Centipede and Pong back into popularity. Their NFTs were 3D models of their games and added a level of exclusivity, with the first ten cartridges created being black and the remaining 100 red. They didn’t publicize the personal details of the first buyer of the Centipede NFT. However, this token holder received an original Centipede arcade cabinet.
As Atari has proven, NFTs are a creative and effective way to branch out and reach new audiences. Your business doesn’t need to be failing for you to appreciate the power NFTs offer to grow your customer base.
NFTs are still in their early stages, and their practical applications are still limited. Nevertheless, people love them and are willing to spend money on them. From what we’ve seen so far, NFTs are here to stay.
NFTs, like the blockchain technology that powers them, have the potential to play a significant role in the future digital landscape. Non-fungible tokens have opened up new channels for interacting with an audience and creating memorable experiences for them. This is especially true for marketers. NFTs may appear to be a fad right now, but they offer several advantages (such as transparency and security) that overcome the limitations of current technologies.
Do you need help putting your NFT product in front of the right audiences and generating positive media coverage? Pressfarm is a PR agency that works with startups and companies of various sizes to help create newsworthy content like email pitches, press releases, guest posts, and press kits. Their PR professionals and expert writers will also create customized media lists to help clients find their perfect media match. The experts at Pressfarm also come armed with a content distribution strategy that has worked for hundreds of brands across different industries.
By submitting your content to the right media outlets and startup directories. Pressfarm can help your brand to rank in relevant search results across various search engines. Additionally, Pressfarm can build custom media lists in addition to offering clients access to a comprehensive database of over 1 million journalists across industries. By giving you these media contacts, Pressfarm can help you to continue doing media outreach for up to a year after you’ve signed up.