There is no argument whether the NFTs are revolutionary or ripoff! Undoubtedly the NFT format has given rise to the emergence of a new creative scene. The way today’s brands are using NFTs for marketing purposes can be grouped into four specific categories which we will call the, “4 C’s of NFT Marketing”:
- Big brands Collecting and Investing in NFT Collectibles: Brands are jumping into the NFT Bandwagon by buying Popular NFTs for millions. NFTs and Cryptocurrencies can soon be a mainstream platform for everything. As a result, big brands are trying their hands in NFTs. For example, Visa made the decision to join the NFT arena and paid around $150,000 for CryptoPunk #7610. The decision marked a fundamental change in how these assets are now viewed as mainstream.
- Brands Creating NFTs to validate Creators: “NFTs have the potential to grow into a potent catalyst for the creator economy and lower the entry barrier for independent creatives looking to make a living through online sales. According to the Creator Earnings, Benchmark Report 2021, there are already close to 50 million people participating in the creator economy, bringing the market size to little over US$104.2 billion, with the possibility of crossing the $1 trillion threshold by 2023. Despite the fact that brand sponsorships account for the majority of the revenue (77%). Since these NFTs can also be sold secondarily in NFT platforms like Opensea, the creators can also enjoy royalty incomes based on the resales!
- Brands that Collaborate on NFTs Validate New Marketing Platforms: Mainly targeting its Gen Z and millennial audience, this virtual community presents a myriad of marketing opportunities. For example, Gucci’s most recent foray into NFTs is 10KTF, a narrative experience that doubles as a metaverse treasure hunt that rewards followers for participation and early adoption. The 10KTF debut is a lesson in exclusivity and building up expectation in the metaverse. This sure gets the followers to get hooked towards the brand!
- Supporting Charitable Causes through NFTs: NFTs are an excellent approach to promote awareness of and raise money for social and charitable issues. More and more people are starting to include charitable components in their initiatives as the market expands. Support the initiatives that promote the causes you care about to stand out for them! One of the ways Big Brands Are Using NFTs for a good cause is using NFTs for charity. For example, Taco Bell sold their brand-themed NFTs with profits donated to the Taco Bell Foundation in support of young people’s education.
When you say NFT you’re referring to an entry on the blockchain. With NFTs it’s like entering a new era of decentralization. With the above said marketing opportunities, brands should start thinking of NFTs as a content marketing channel similar to social media and YouTube since NFTs are a social innovation that is here to stay. As a blockchain development company, we are thrilled to see renowned brands endorse NFTs and advance the adoption of this brand-new blockchain and digital asset paradigm. Contact BSEtec for more details.