What Is NFT
Although they’ve been around for some time, NFTs are now the talk of the town (and even more hot investments). What are they? And how do they function? To understand the concept of non-fungible tokens (NFTs), We need first to define “fungible.”
If something has the potential to be fungible, it can be exchanged for another item that is of similar or equal value. An example of this would be money that is fiat (and perhaps cryptocurrency).
It’s fungible as you can trade it with items of equal value, and it is also possible to sell it in exchange for a different currency should you need to.
However, the thing that isn’t fungible is exclusive and cannot be traded at a price comparable to it. For instance, diamonds are not fungible since no two diamonds on the planet are alike, and each has its unique worth. It is impossible to trade one diamond for another in equivalency.
A non-fungible token is a digital asset developed using blockchain technology. What separates NFTs distinct from cryptocurrencies (which are fungible tokens since they are similar to one another) is that they are equipped with unique identification codes and metadata that identify one NFT from the other.
Since every NFT is distinct, it cannot be exchanged or traded at an equivalent rate to an identical NFT. This means that every NFT can be considered a unique digital collector and unique item that cannot be duplicated.
This is where the fascination with NFTs began. In 2017, CryptoKitties is, a mix of Tamagotchi and trading cards, became a sensation. Each kitten is individual and can be fostered, reproduced, or traded for up to $140,000. NFT became a craze in the year 2000, and today, the fascination for NFTs is growing.
Why Is the Non-Fungible Token (NFTs) Important for Brands
One of the significant reasons why NFTs are essential to companies is they can represent digital files, including audio, art, and video.
They’re so versatile that they can also be utilized to describe different types of artistic work, such as virtual real estate, virtual worlds fashion, and more.
What Is This Got to Do With Your Marketing and Brand Strategy
Due to the worldwide attention they’ve attracted, NFTs have created new avenues for brand storytelling and interaction with the consumer that are, as you’re aware, the two primary components of a well-designed marketing strategy.
With NFTs, you can:
- Boost brand recognition
- Encourage interaction
- Inspire people to be interested in your company and brand
- In the end, create unique brand experiences
- NFTs can help you boost conversion rates and generate revenues
What Brands Are Using NFTs
The idea that there are NFTs in marketing could be challenging to comprehend. As with many things that are hard to grasp, the best method is to study examples. Here are some creative ways that brands use NFTs in their marketing. I hope that you’ll gain some ideas from these examples.
Taco Bell GIFs
Research has shown that most millennials prefer doing business with brands that align with their ideals. Therefore, brands should promote causes they are passionate about (and honestly).
Although Taco Bell has been doing this for a long time through their foundation and their foundation, they had taken this to a whole new level when they began selling taco-themed NFT GIFs that support the Live Mas Scholar. Live Mas Scholar
In just 30 minutes after the time they put the 25 NFTs (dubbed NFTacoBells) up to auction through Rarible (an NFT marketplace), All the GIFs disappeared.
Each GIF began at a bidding cost of $1. But, they were all sold for thousands of dollars, some even fetching more than $3,646. Making and selling NFTs was a clever decision from Taco Bell’s side since it caused lots of attention in mainstream media and social media. That’s always beneficial for businesses.
As with Taco Bell, you can utilize NFTs to kill two birds with one shot.
- Increase brand recognition
- Help a worthy cause
Both of them are potent factors that can generate sales for your company.
Sneaker lovers can pay astronomical sums of money for an exclusive pair of Nikes, and it is reported to be a way of leveraging Nike’s NFTs aspect.
This is why the footwear brand allows you to purchase digital copies of pairs of shoes known as Cryptokick, and you can store them within your online locker.
While these shoes aren’t practical in real life, however, you can wear these shoes to your character for video games such as Fortnite, providing you with an unmatched pair of shoes that look amazing on your feelings.
To expand its appeal to European viewers with a digital and direct-to-consumer approach, the National Basketball Association created the “NBA TopShot,” an online marketplace that allows fans to purchase their favorite moments from players and earn certificates with an original video
This is similar to trading cards, but there are live-action moves made by the team members they love and could be the future of this field.
The Coca-Cola Company creates a collection of digital collectibles to recreate some of their favorite products for the metaverse during International Friendship Day.
The collection contained many unique products, including a futuristic design of the Coca-Cola delivery jacket. Users could wear on Central and a 3D virtual reality decentralized platform.
The proceeds from this campaign were donated to Special Olympics International, the world’s largest disability organization. Athletes.
In 2019, smartphone giant Vodafone came up with an AR game where players had to search for NFTs known as Vatoms as part of an advertising Apple giveaway.
The program was so popular that the company came up with a second version in 2020. This time, it was an alliance with Samsung to give players hundreds of prizes in technology that were tied to NFTs.
We can see that NFTs are a product that is useful in video games. And for Ubisoft, the company has come up with the Ethereum-powered Rabbids game that allows players to purchase characters from the popular game.
However, there’s an exciting aspect to this game, as players cannot have ownership of their Rabbids for too long; instead, they can be taken by a different user. The campaigns are designed to donate to charities such as UNICEF and UNICEF, and we’ve seen a growing trend for brands that use NFTs.
Non-Fungible Tokens, Bitcoin, Blockchain, and Blockchain, are all aspects of what’s coming in the marketing field, even though they can be challenging to grasp; however, they are not going to hinder us from adjusting to these methods and implementing them over the future.
While we can see that NFTs are inextricably linked in the field of art and sports, as well as video games, we’ve seen how brands with nothing to have anything to do or have anything to do with Taco Bell or Coca Cola have managed to break into the market, earning huge revenues.
The goal is to utilize your creativity to determine ways to overcome the wave of NFTs and join this trend, and for that, it is essential to study and learn about the people who are already a part of this trend.