NFT Brands: Benefits of Using NFT For Brand Awareness
It is no longer a secret that NFTs are altering global perceptions of currency and monetary value. These intangible assets drive change in various industries, from art to real estate. This NFT fever has infected not only celebrities but also brands.
Non-fungible tokens are catching the attention of global brands, who are investing in learning more about them. Companies such as Coca-Cola have already jumped on the NFT bandwagon, cementing their positions as market leaders.
Certain concepts must first be grasped by organizations seeking to understand what an NFT is and how it could be used to drive brand value. This article will help you understand how brands employ non-fungible tokens and the benefits they gain from them.
How Brands Use NFTs?
Brands have incorporated non-fungible tokens into their brand and marketing strategies in numerous ways to drive brand value, boost conversion, and designate long-term connections. Here are some instances of how brands used NFT as part of their strategy.
- Digital Merchandising
Several fashion brands use non-fungible tokens to engage customers and establish new examples for fashion events. In fact, NFTs introduced new ways of approaching the public. Decentraland is one of the popular metaverse platforms that employed this concept and held a completely virtual and interactive Fashion Week event.
This event attracted popular brands such as Paco Rabanne, Tommy Hilfiger, Forever 21, etc., who participated in the event. The show sold non-fungible tokens of accessories and clothes representing different brands.
- Event tickets
Ticketing industry benefits enormously with the help of non-fungible tokens. In fact, NFTs have changed the way tickets are sold. Moreover, NFT ticket holders receive more than just a ticket to an event; they also receive an immutable and often interactive digital asset that grants them entry into a show or festival.
These tickets also grant holders access to exclusive experiences, such as fan clubs comprised solely of NFT ticket holders. An event organizer can use non-fungible tokens to encourage attendees to attend breakout sessions or limit attendance at specific conference events.
NFTs provide nonprofits with a new revenue stream, but they also allow organizations to expand their network and connect with many new supporters for their cause.
The most significant advantage of raising funds through NFT sales is the dilution of ownership. Entrepreneurs who design their projects so that the NFTs increase in value as the business grows can raise funds without giving up ownership of the startup.
There are many people, projects, and businesses that contribute to the growing philanthropic side of the NFT community. Many nonprofits form long-term relationships with the NFT community and earn ongoing support for their mission.
- Unique experiences
Some businesses have used non-fungible tokens to provide their customers with one-of-a-kind experiences. This is the scenario of the Californian winery Robert Mondavi, which chose to launch the world’s first NFT-sold wine label.
- Music and art Festivals/Events
Music festivals are warming up to the idea of non-fungible tokens and Coachella Valley Music and Arts Festival is one of the prime examples of that. The premium participants of the festival got a non-fungible token picture of a blooming flower.
The team also introduced new technologies, such as metaverse and cashless payment, to mix in-person experiences with virtual marketing.
Notable brands that encashed the NFT hype
Gucci is a notable high-end fashion brand that used non-fungible tokens as part of its marketing strategy. This brand joined hands with Superplastic to launch a limited non-fungible token three-part series. The token was accompanied by SUPERGUCCI (exclusive ceramic sculpture). The brand launched a Discord channel encouraging information sharing on metaverse.
- Pizza Hut Canada:
This brand had an innovative marketing campaign where they launched a series of pixelated pizzas to advertise a special offer on four recipes that are available at the restaurant.
Adidas combined their physical products with virtual to give a special experience to their customers. As a result, they released their first non-fungible token along with a hoodie with blockchain address, a tracksuit, and an orange beanie. The brand chose to be inclusive and offered tangible products along with non-fungible tokens.
- Mac cosmetics:
This notable cosmetic brand effectively made use of non-fungible tokens to communicate its brand values to its customers. They launched an NFT collection to mark America’s National Youth HIV/Aids Awareness Day, wherein the revenue generated by the primary and secondary sales went to M·A·C VIVA GLAM Fund and the Keith Haring Foundation.
Why should Brands Care about NFTs?
NFTs, as we know, are special digital entities that have their ownership tracked and kept safe on a computer system called the blockchain. With the phenomenal rise of non-fungible tokens, numerous brands and businesses are eyeing these unique tokens to utilize and expand their revenue. It is known that brands often talk about reaching more customers or creating loyalty which needs extra effort and numerous strategies.
However, when a brand uses non-fungible tokens, it can reach these objectives easily through direct customer interactions. Non-fungible tokens incorporate a completely new dimension to customer engagement, allowing brands to communicate directly with their most valuable audience. Thus, one can say that brands must care about non-fungible tokens.
How Do NFTs Benefit Brands?
Non-fungible tokens provide numerous benefits to brands and businesses, such as
- Special and unique experiences: Offering unique and memorable customer experiences to the customers is part of building a solid fanbase. And non-fungible tokens help brands interact with their customers on a personal level.
- Improve customer relationships: NFTs enable brands to prioritize their most loyal customers while also increasing revenue and going to deliver a new set of products and exclusive rights.
- Enhance brand awareness: In recent years, non-fungible tokens have grown in popularity as a tool for businesses to boost brand awareness. Businesses can attach digital assets to their brand by creating NFTs or NFT collections, which customers can then trade or sell.
Whether hyped or not, non-fungible tokens have been growing significantly since 2021. Brands have been gaining great results with their customers, providing exclusive experiences to customers and generating a sense of community. Additionally, the brands are bringing younger audiences more easily tuned into new technologies, in addition to financial gains, with the help of non-fungible tokens.
Whether you wish to learn about NFT, Blockchain, Web3.0, Metaverse, or other emerging technologies, we have the vital resources that will enlighten and help you make an informed decision.
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