The well-known NFTs (Non-Fungible Tokens) and branding with NFTs is a phenomenon that cannot be ignored—and it appears that trailblazing companies are catching on. Despite the fact that some individuals are still grappling with the notion (if you don’t completely comprehend what an NFT is, don’t feel like an outcast.)
Now almost every brand development agency is jumping on this bandwagon. The truth is that this technology is booming (in 2021, NFTs grew by 11,000 percent). And some businesses are using it in really inventive ways, resulting in equally spectacular outcomes for themselves.
No No! This does not imply that McDonald’s sells NFT burgers! Even if you’re hungry, you’re not going to grab a digital burger. We’re not sure how well ketchup and pickles mix together with a hard drive patty. Plus, with all that metal, it’d be just too crunchy. Yuck.
NFTs have ushered in a new model of trade. This new economy provides creators, artists, and even brands with the flexibility and decentralization to build an extra and unique connection with their supporters. Acquisition of an NFT expands a community’s contact with a person or corporation, from clubs to contributions to experiential marketing.
Much of the discussion around NFTs have been on how they would assist individual innovators in their transition away from large corporations and the need to depend on these firms for revenue.
But what about the other side of the coin? How are businesses utilizing the opportunity provided by NFTs to establish a direct relationship with their consumers in a fashion that does not rely on influencers’ endorsements or viewing their advertising through social media platforms?
Coachella, Gucci, Super Bowl, Adidas, Dolce & Gabanna, and Coca-Cola are just a few of the numerous brands and corporations that are utilizing NFTs strategically to achieve greater promotional outcomes and deliver a new and distinctive perspective for their customers.
In this blog, we’ll look at more of these cases and show you how businesses have been using NFTs, what outcomes they’ve seen, and what secrets you can unfold for your brand—whether you use or don’t use this new technology.
NFTs, or Non-Fungible Tokens, are one-of-a-kind, distinctive, and irreplaceable codes issued by the blockchain system, which is the same mechanism used in cryptocurrencies such as Bitcoin and Ethereum.
So, how do brands make use of NFTs?
Remember that the NFT environment is always evolving, both in terms of how people perceive it and as a result of new regulatory requirements. This implies that any brand or brand development agency must assess the following points in terms of how they make sense for their business and customers. These possibilities could include:
1) Developing innovative and comprehensive brand experiences
2) Enhancing brand recognition and engagement
3) Creating brand awareness, both online and offline
4) Creating a powerful brand image
5) Aiding social causes
6) Promoting interaction
7) Creating a community
Now, let’s look at how businesses have employed NFT as part of their initiative to amaze their audiences.
L’Oreal – The famous Makeup and Skincare collaborated with United Talent Agency to develop its NFT line, which is focused on projects that empower women.
The movement is part of their marketing strategy for their newest ‘Reds of Worth’ lipstick range. The NFT series includes five artworks themed by the color red and created by a female artist.
The revenues from the sales will benefit the artists who produced the artworks, and 50% of the transaction value of secondary market purchases will benefit the Women of Worth organization.
As a business truly devoted to empowerment and inclusiveness, this is a wise decision to expand on its purpose of supporting women and providing these artists with a worldwide platform to present their work.
L’Oreal has been expanding into the multi-media field by acquiring tech companies. In fact, the firm purchased an augmented reality filter startup in 2018. It introduced a “virtual makeup” filter last year, which enabled virtual testing prior to purchase.
If you enjoy a pretty good music festival, you’ve definitely heard about the Coachella Valley Music and Arts Festival, which took place this April. This festival is well-known for its length (two full weekends) and the diverse range of musicians from throughout the world.
This year, in contrast to the wonderful attractions and guest artists, the NFTs caught the eye of the attending public. The event provided all paying attendees with an NFT digital image of a flower that blossomed on the festival’s two Fridays, providing distinct offerings to festivalgoers.
Coachella 2022 also included new technologies, such as metaverse and cashless payment, to merge in-person experiences with virtual marketing, and it became an excellent illustration of the necessity of interactive marketing in the post-pandemic period.
Under Armour leveraged its entry into the NFT sector to recognize Stephen Curry’s 3-point record, producing an NFT of the sneaker he was sporting when he set the record for most 3-pointers in NBA history.
When acquired, the shoe will be digitally available for the buyer’s avatar on a variety of metaverse platforms, including Decentraland, Gala Games, and The Sandbox.
They are, however, not the first apparel brand to venture into the metaverse. Roblox recently saw the launching of virtual fashion collections like Forever 21 and Ralph Lauren.
If you are a sports fan, memorabilia is something you treasure.
As you are aware, because they are unique, different, and irreplaceable codes, NFTs provide benefits to the entertainment business today, such as events, movies, and sports.
One of the benefits for businesses is the creation of a collector object for fans, such as a ticket. From matchboxes to luxury vehicles, the collections business is worth billions of dollars each year and piques the interest of individuals all around the world.
Some corporations saw their customers’ interest in collections from their brands and decided to bring the enthusiasm of tangible item collectors to the realm of NFTs.
Some firms have already opted to publish their tickets in a totally digital format to offer their customers the experience of collecting tickets. This is the situation of the NFL franchise, which opted to transform Super Bowl tickets into collectible NFTs with collaborative efforts from a well-known brand development agency.
Vasco da Gama, a Brazilian soccer club, recently joined hands with Block4 (a Brazilian firm that specializes in the production of NFT memorabilia) to distribute NFT tickets to the team’s fanbase.
In the world of entertainment, the AMC theater company gave out 86,000 NFTs to anyone who purchased tickets to see Spider-Man: No Way Home.
Brands and customers benefit from protection against forgery of sold products when using NFT and blockchain technology for ticketing. With blockchain, a distinctive code is produced on the ticket, which can be readily confirmed by event organizers and even made as a non-transferable and secured code for resale.
This validates the ticket’s legitimacy and confirms that it is being sold by a genuine organization, avoiding ticket fabrication and giving ticket tracking for fraud management.
Companies in the apparel industry are benefiting from the NFT craze. Last March, Decentraland hosted its first fashion show, ushering in a wholly virtual and realistic Fashion Week.
During fashion week, labels such as Dolce & Gabbana, Tommy Hilfiger, Forever 21, and Paco Rabanne walked the catwalk, and the channel encouraged fan interaction, set new norms for fashion presentations, and introduced new methods of addressing the audience.
Aside from the pleasure of taking part in a fashion show, the event also offered branding with NFTs of apparel and accessories from the brands showcased in the events.
Whether hyped or not, NFTs have been floating in significant volumes since 2021, when $25 billion were exchanged, setting a new record since their inception.
Brands that are paying attention have pounced on the NFT craze and are profiting from it. Adidas, for example, shifted about $43 million in NFTs in collaboration with Bored Ape Yacht Club, Punks Comics, and GMoney.
Now even UAE-based brands are looking to set sail on this trend to interact with their audiences and improve their brand image.
Initiate your branding with NFTs if you want to make investments in NFTs for your business. Define your expectations for this strategic approach. Do you want to broaden your audience’s reach? How can you boost a sense of unity?
Connect your brand’s audiences? Do you support social causes?
And, to ensure the success of your digital marketing and brand development, the ideal advice would be to acquire brand development services from an experienced advertising & marketing agency like Mystic Advertising that understands your brand.
What’s your take on the whole Branding with NFTs trend? We would love to hear from you.