A quick dive into how leading brands are using NFTs

Blockchain is undoubtedly one of the hottest technologies of the last decade and is making rapid strides to emerge as the technology to look forward to in the coming years. The common mistake most people make is to confuse blockchain and cryptocurrencies with each other. In fact, blockchain is the technology behind many digital products and services, of which crypto is just one example. Non-Fungible Tokens (NFT) are now emerging as one of the most amazing applications of blockchain.

NFTs have created a lot of buzz in the digital space and have become one of the most sought after digital assets in this era of online consumerism. NFTs have opened up a whole new sector of the digital economy, allowing creators, brands and artists to deliver irreplaceable digital assets that can only have a single owner at any given time. This is why brands readily accept NFT as a marketing tool to deliver a new range of experiences to customers, increase brand loyalty and create online communities in new ways. Let’s understand how leading brands are using NFTs to gain market impact.

The importance of NFTs for brands

NFTs are unique digital assets created with blockchain that ensures a distinct identifier and metadata for each NFT, making it different from others. Each NFT is cryptographically authenticated through blockchain, ensuring that the owner’s records are always present on the digital ledger. Since NFTs are digital assets, there is no fixed value they command; thus their value is determined through auctions or by the owner.

Brands use NFTs to represent digital assets such as videos, artwork or images. Their versatility can be used to represent creative avenues such as virtual fashion or real estate. Because of the buzz created by NFTs, brands are enjoying new avenues for brand storytelling and customer interactions. NFTs also enable the brands,

• Improve brand awareness.
• Develop unique brand experiences.
• Increase conversions to increase revenue.
• Encourage brand interaction.
• Increase customers’ interest in the brand.

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How are brands using NFTs to increase market impact?

Here are some examples of how brands are using NFTs to drive market impact:-

1. NFTaco Bell

Taco Bell is one of the leading food brands worldwide and is known for its interesting digital marketing strategies. In 2021, to mark the return of potatoes to the food menu, Taco Bell launched 25 NFTs, making it the first fast food chain to join the NFT trend. Surprisingly, all the NFTs were claimed within half an hour of launch and the highest bid went up to $3,646 while the starting bid was $1. These NFTs are currently trading at around 10 ETH (Etherium). Buzz generated by creating and selling NFTs helped the company gain significant attention on digital and mainstream media to increase brand awareness. Also, Taco Bell announced that all profits from the initial sale of NFTs and subsequent resales would be used to sponsor the Live Más Scholarship program.

2. ASICS Sunrise Red

ASICS was the first footwear and sportswear brand to enter NFTs through its Sunrise Red campaign. Through this promotion, the company offered certain limited edition digital sneakers and limited edition gold items for auction. When asked, the company added that their mission here is not to reap the immediate benefits through the auction. Nevertheless, it is a first step towards carrying out the mission of creating a future where digital goods promote physical activity. Proceeds from the campaign were used to fund the ASICS Digital Goods Artist-in-Residence program. The brand awareness thus generated helped the brand considerably in its marketing efforts.

3. Beeple Artwork

Mike Winkelmann is considered a legend in the digital art space, while his presence in the mainstream art industry is practically non-existent. He became the third most valuable living artist when his JPEG sold for $69.3 million at auction. This JPEG was sold as an NFT and became their first ever digital NFT auctioned by Christie’s. Interest in the auction peaked just 90 seconds before the auction was due to end. This event encouraged brands to embrace new technology to fend off stiff competition through disruptive risk-taking capabilities.

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4. New CAT GIF

When Chis Torres created and auctioned the NFT version of the famous Nyan Cat GIF, few imagined it would sell for half a million dollars on “Foundation”. This event inspired marketers to create unique experiences for customers by converting some of the best ads into NFTs, as many customers are willing to pay for them.

While NFTs are relatively new compared to other digital marketing techniques, the potential they offer for brands is incredible. Marketers should certainly consider NFTs as an extension of their marketing strategies to stand out from the competition.