In light of the digital era, where marketing non-fungible tokens or virtual assets is requiring marketers to stay on their toes, many multinationals have already tokenized their products and services using NFTs or non-fungible tokens. NFTs, which are currently popularised, have led to the tokenisation of products and services by multinational corporations as virtual assets, including Coca-Cola, a global beverage company, Nike, a performance wear company, and even individuals like Marshal Mathers, an Eminem music star, as well as many other prominent figures.
How can a brand improve its marketing efforts through NFTs? NFTs or Non-Fungible Tokens are unique cryptographic tokens that can’t be duplicated on a blockchain network. They represent real-world assets such as artwork or limited-edition items and may be tokenized to allow brands to produce, sell, or trade them in a secure and efficient manner.
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NFTs are proving to be particularly lucrative for many brands; each has a distinct motive for using them. Some businesses want to utilise NFTs as a new source of revenue, while others want to utilise NFTs to raise money for a cause that benefits society and the environment. NFTs are also utilised by a range of businesses to tell their own stories in addition to reaching a wider audience in the metaverse.
How NFTS can be used for marketing and charitable purposes
?It should be noted that McDonald’s, a well-known fast-food chain from the 1950s, re-introduces its legacy products after stopping them at some point. To make the point better, Indian people may remember how they enjoyed potato wedges in the early 2000s, but they were discontinued and have only been available at McDonald’s restaurants in the country in the past few years. In addition, McRib, a dish that is highly favoured worldwide and that has been unavailable for a long time, has just been brought back to restaurants in India. McDonald’s issued NFT in order to generate hype for its temporary return. After announcing the news, the collection of 10 MCNFTs was made available only to those who re-shared the brand’s invitation tweet. As of 2021, 90,000+ retweets were sent out by the start of the announcement.
Brands are going further than ever by giving exclusive brand offer rights to their customers in the form of NFTs. For example, Anheuser-Busch, a beverage multinational that operates as a subsidiary of Budweiser, hosted a NFTBeerFest event at its headquarters to give certain Budweiser Heritage NFT and Royalty Collection NFT holders free beers, performances, and other goodies.
Metaverse platform Decentraland hosted the first metaverse Fashion Week as well as an immersive Fashion Week, both of which featured luxury fashion brands like Dolce & Gabanna, Tommy Hilfiger, and Forever 21. Besides driving brands’ engagement with visitors, the platform also allowed visitors to buy NFT merchandise that was exclusively part of the show.
NFTs are not just a profitable way for brands to gain an edge, but also an effective way of generating fund for a social cause. Ray-Ban, the world’s leading sunglasses manufacturer, has never before released an NFT for its iconic Aviator Sunglasses. A unique NFT was offered for sale on OpenSea, a NFT marketplace, with the proceeds going to an Italian Art Trust.
In the face of the Covid-19 epidemic, an Italian fashion brand, Gucci, used NFT-based marketing to provide respite to the collapsing global medical industry. An online auction organised by Christie’s featured NFTs inspired by the brand’s recent Winter and Fall collection of 2021, to raise funds for UNICEF USA’s COVAX initiative. The NFTs’ final sale price was USD25,000, and all proceeds went to UNICEF USA to help raise funds for COVAX.
In an effort to pool funds to boost internet access for school children worldwide, the United Nations International Children’s Emergency Fund (UNICEF) sold 1000 NFTs. In addition, MAC Cosmetics sold collectible NFTS to raise money for HIV/AIDS-related organisations.
Do NFTs have marketing applications?
NFTs have no inherent value, making them risky investments. As a result, many potential investors may be dissuaded from participating in this space. A regulatory body is necessary to promote it.
In India, the NFT mechanism is still in its infancy and brands will need some time to get a handle on how it works. As with any technology, the early pioneers will have to endure the heat while latecomers will be able to see the blunders of their predecessors and avoid them.
Unfortunately, you won’t know how well prepared you are if you don’t test your mettle. Therefore, it is important to keep track of how many companies are approaching their target audiences through the NFT route to create your marketing strategy using NFTs.
Virtual reality is increasingly adopted worldwide, including India in the age of Web3 and Metaverse, to look at prospective ways of branding NFTs.