The buzz around NFTs is great, and NFTs are not only important for collecting or investing, they have become much more than that: a marketing tool. Today, NFTs are used in various ways for marketing purposes. For example, as virtual works of art and expensive collectibles, as unusual objects in a game or for digital donation campaigns.
Until recently, companies relied primarily on tried-and-true tactics such as paid advertising, partnerships, social media marketing, and television advertising. Today, we are at the dawn of a whole new world: the metaverse. This virtual world offers brands, companies and individuals countless marketing opportunities. One of them is NFTs, the so-called “Non-fungible Tokens”.
But what exactly are NFTs and how can they be used in marketing?
NFTs as a marketing tool
NFT has been named the word of the year for 2021, helping to increase awareness of the acronym. Let’s take a look at NFT to better understand what it is:
Non-fungible
The term “fungible” refers to something that can be exchanged without affecting its individual value. In a fungible transaction, mutually exchangeable goods are exchanged for another identical object. For example, 100 U.S. dollars can be exchanged for other dollars because they are fungible and of equal value.
This illustrates the meaning of the term “unfungible”. Goods cannot be exchanged because they are not of equal value. For example, for trading cards: since each Pokémon has a different value, they cannot be traded.
In the same way, you can’t replace Pablo Picasso’s “The Three Musicians” with DaVinci’s “The Last Supper”. They are both paintings, but they are different works of art that cannot be exchanged for each other.
Therefore, NFTs are not fungible. They are therefore digital assets that cannot be traded, only sold and bought.
Token
In simple terms, a token is a symbol, emblem or reference to something. In the context of NFTs, token refers to the “ownership” of unusual NFT objects. Many NFTs can be tokenized at the same time, but each NFT can have only one owner.
The token can also be used as a virtual currency. It is like bitcoin, Ethereum and other digital currencies, a kind of virtual currency. In addition, these tokens in NFTs are protected by the Ethereum blockchain, which prevents the proof of ownership of an NFT from being illegally altered or copied/pasted into another NFT item.
An NFT is therefore a unique, non-interchangeable object protected by the Ethereum blockchain. An NFT cannot be copied. Moreover, only one person can own it.
Also read: Why B2B marketers should tackle the Metaverse now?
How do you use NFTs in your marketing strategy?
NFTs are now readily integrated into marketing strategies. Here are three marketing applications for NFTs:
1. Games
Modern games are a popular way to market NFTs. This is because popular games like Fortnite have detailed graphics and outfits for their avatars. So you can make and sell NFTs in the form of virtual pets, avatar skins and other game-related items.
Also, since games like Fortnite accept cryptocurrencies to buy these skins or other virtual goods, players are more likely to invest in these NFTs. Therefore, you can market your NFTs in games and even develop an NFT-based business model to take it to the next level!
NFTs have become commonplace and the gaming industry is in a unique position to capitalize on this trend – using these digital assets. For example, it was reported that gaming startup Mythical Games raised $75 million to develop a platform that uses NFTs as avatars and allows players to sell or trade their NFT characters on the platform.
NFTs and games are inseparable. However, the gaming industry uses NFTs not only to market its games and products, but also to create and maintain a loyal user base.
2. Ticket sales
In recent years, the way people “pay” for goods has evolved considerably. For example, you can now use Bitcoin to buy a ticket to your favorite concert or sporting event via an NFT.
NFTs now also serve as virtual tickets to any type of event, including workshops, fairs and exhibitions. Not to mention the attractive and unusual content that the NFT reflects, which makes it one of the best digital objects to attract the public. You can also create an NFT for a music or sports event where die-hard fans line up to buy a ticket.
Virtual NFT tickets can also include additional services such as drinks, food or T-shirts. In addition, unlike a paper ticket that loses its value as soon as the event is over, an NFT ticket retains its value.
3. Fashion
At first glance, the fashion industry and NFT do not seem to go together. But despite this, a combination of these two sectors could ultimately prove to be the most profitable NFT application.
This is because the fashion industry is currently ready to capitalize on the success of NFTs in the gaming industry. On digital platforms such as The Fabricant Studio, for example, it is possible to create one’s own digital NFT clothing, which users can purchase for their digital avatars in the Metaverse.
Major fashion brands are also getting into the NFT business. Gucci, for example, created an NFT that was sold for $25,000. Burberry also cooperated with game developer Mythical Games to create its own NFT.
With NFTs and the metaverse, fashion brands and designers can create, market, and sell digital clothing to millions, if not billions, of people who want to dress their digital avatars in the latest fashion trends.
The possibilities for fashion and NFT are truly limitless. It’s a fabulous tool for metaverse marketing. Maybe you will be the next Prada, Gucci or Nike of the metaverse? Because in the metaverse, anything is possible!
Conclusion
NFTs are digital assets intended to be collected, sold and purchased. They have a unique owner and the blockchain protects copyrights. NFTs offer companies a new opportunity to market their products, promote new products and reach new target groups. Gaming, ticketing and fashion are just a few of the industries that are integrating NFTs into their marketing strategies.
Whether NFTs are a viable long-term marketing strategy remains to be seen, and only time will tell if NFTs will be sustainable. One thing cannot be ignored: NFTs have attracted a lot of interest and attention (and money). More and more major brands are recognizing the existence of NFTs and incorporating them into their branding strategy.
