The global marketplace is chock-full of shiny new technologies beckoning brands to join in their digital dance. One such glittery innovation—that’s part of the Web3 movement and adding fuel to the marketing fire—is NFTs or Non-Fungible Tokens. Join us on a digital journey to unlock the world of NFTs and learn how you can use them for brand engagement.
What Are NFTs?
NFTs have emerged from the crypto realm, and they promise to transform the way we view (and literally own) digital assets. Put simply, an NFT is a digital asset that links ownership to unique physical or digital items – such as music, art, real estate, and more. It’s like having a special certificate or digital sticker that proves you own something exclusive. Each NFT is unique, can't be replaced with something else (hence, non-fungible), and is stored on a blockchain, the digital ledger used in cryptocurrencies.
NFTs are growing in popularity because they add value for customers by offering ownership and exclusivity in a digital world, all the while providing brands with a unique avenue for interaction.
How Are Marketers Using NFTs?
It’s important to understand that anything can be turned into an NFT. We spoke to Fred Rezeau, founder of Litemint LLC, an NFT marketplace, who believes we will see some innovative marketing with NFTs, especially since they can travel intact in the metaverse worlds. “I can think of decentralized exclusive access to various experiences including games, online events, services, or lifetime perks for businesses starting something new and willing to engage a core audience.”
To better illustrate what NFTs can offer, let's check out how three brands have engaged their audiences through NFTs.
Taco Bell: In March 2021, Taco Bell launched its NFT art collection featuring animated Taco-themed art. It sold out within minutes, and they successfully stirred up an enormous brand buzz. It generated goodwill as well—all proceeds went toward its Live Más Scholarship.
Nike: Kicking it up a notch is Nike's 'CryptoKicks.' When customers buy a pair of these sneakers, they also get a digital twin in the form of an NFT. Imagine walking the physical and virtual realms with your snazzy CryptoKicks - a clear testament that NFTs offer an intersection of fashion, gaming, and digital identity.
Gucci: Luxury brand Gucci took a stroll in the virtual world with its digital garden on Roblox, an online platform with millions of users. Visitors can buy Gucci items, turning themselves into digital fashionistas eager to flaunt their Gucci garb. Talk about a voguish venture into the NFT universe!
While these brands have met success, Rezeau believes we’re just scratching the surface. “In my opinion, none of these have leveraged the real potential of NFTs as decentralized ownership certificates. This technology paves the way for cross-platform experiences... morphable digital items. Imagine a brand that would successfully have their NFTs representing valuable assets across a multitude of open experiences— - not just for them. This is what a brand should look to achieve.”
What KPIs should marketers use to measure the success of NFT-based marketing?
Sales is an obvious KPI, but continuing to monitor performance and engagement after the first-time sale is key. Rezeau notes, “To me, secondary market performance, which includes not only sales but also other forms of user interactions and projects using the NFTs is a major indicator of success for a project.”
How Can Marketers Leverage NFTs for Brand Engagement?
It’s no surprise that brands like Nike are leading the charge in exploring marketing’s potential in Web3. But, There’s still time to be an early adopter in this area and NFTs can be a good way to experiment. Here are a few ways to make the most of your NFTs:
- Unique NFTs: Identify assets that could be transformed into valuable NFTs. Be it digital art, music, video content, or even a tweet. If it matters to your customers, it can be considered. Turn these into unique NFTs that foster a sense of exclusive ownership.
- NFT Drops: Tease the unique, limited-edition ownership that gets people talking and scrambling for a piece of the action. This scarcity-driven tactic can increase brand engagement and hype exponentially.
- Interactive NFTs: Let your brand’s NFTs go beyond simple displays. Create interactive, gamified NFTs that allow buyers to engage directly with them. This is an innovative way of fostering brand engagement in a meaningful and exciting way.
- Collaborations: Partner with artists or other brands to co-create, bringing an extra layer of allure to your NFTs. When different worlds collide, magic happens!
On this topic, Rezeau suggests, “Marketers should try to leverage the true properties of the tech, behind a buzz word there is a unique, revolutionary tech allowing the creation of open experiences, crossing and reaching out beyond the brand boundaries.”
Need an NFT Artist? Wripple has them—as well as and other Web3 experts on our platform. Contact your Wripple Client Lead, log in to create a project, or click here to request access to the Wripple platform.
Read more from our series on Web3 applications in marketing.
The following posts have been published in this series:
- Navigating the New Frontier: A Comprehensive Introduction to Web3 Marketing
- Embracing Blockchain Loyalty Programs
Blog image art by Dixie Gilbert.