JPEGs selling like hot cakes for millions of dollars, legacy auction houses selling over blockchain platforms- based as NFT are becoming the new interchangeable unit.
The nascent market for NFT had its best year on record, generating over $23 billion in trading volume.
Let’s understand what Non-fungible tokens are?
NFT or Non-fungible tokens are digital assets that you can buy and sell, just like any other piece of property. However, each NFT is “tokenized”, meaning it has virtual ownership that makes it unique. This ownership token is stored in a digital ledger called the blockchain.
Here’s an example. In August 2020, Paris Hilton auctioned a drawing of her cat on the NFT platform Cryptograph and donated the proceeds of the 40 ETH sale (the worth$17,000) to charity.
The most valuable NFT is worth over $91.8 million.
Rock band Kings of Leon are among the latest celebrities to jump the bandwagon of NFT marketing. They released their album When You See Yourself. The album is made available to everyone in traditional formats. Six NFT (in 3 varieties) sold for $50 with perks like moving album covers, digital downloads, concert tickets and exclusive vinyl copies of the album.
Here’s how different companies are using NFT for their marketing campaigns.
Protect Brand Image
Small brands don’t have to worry about many knockoffs; legacy brands are leaning into NFTs as a way to protect their brand image.
Robert Mondavi Winery joined the NFT by using it to expand their audience and build brand awareness; their well-established brand uses NFTs to protect their wine’s providence.
Patronize a Good Cause
Users want to support the companies that give back to society. Today, 84% of millennials say they prefer to side with brands with transparent policies with values and a culture they can trust. For example, kinetic Sand, a renowned squeezable, moldable sand, uses NFT marketing to raise funds for the Boys and Girls Clubs of America (BGCA) to expand their arts and creative experience programs.
Personalized Promotion of Product and Services
Are you planning to promote your brand through in-person events? Then, take a cue from the AMC Theaters! When tickets for the new Spiderman- No Way Home went on sale, they offered the first 86,000 AMC investors who bought or reserved a ticket the opportunity to receive a free NFT.
If customers purchase a ticket and fail to attend the movie, they would no longer receive an NFT. With AMC NFT, users have to be members of the AMC rewards program, but they also have to show up to the theater in person to watch the movie.
Sports and athleisure wear brand Adidas use a similar strategy by offering POAP tokens to hard-core fans who attend specific events.
NFT is paving the way for marketers to reach their audience, drive awareness and even promote new products and services. As SEO and content marketing drive long term growth without fleeting market attention, NFT empowers your brand to outreach target users in a tech savvy manner.