The market is expanding in everything from culture to fashion, luxury goods, cosmetics, food, and even real estate. Celebrities especially want a piece of the action and are joining in for a fresh way of connecting with fans.
So what exactly is an NFT?
NFT stands for Non-Fungible tokens. NFTs indicate ownership of unique items. They can only have one owner at a time, and the Ethereum blockchain protects them. No one can mess with the record of ownership or copy it into a new NFT. The original owner of the NFT gets royalties every time it's sold and passed on to someone new.
On the other hand, Fungible tokens can be exchanged because their value defines them rather than their unique properties. For example, a bitcoin is fungible because you can trade one for another bitcoin, and you'll have precisely the same thing in the end.
A problem on the internet today is that the more everything becomes digital, the more there is a need for ownership protection. NFTs are here to solve that problem. Now, we can understand why digital artists are stoked about this invention. They feel way more secure now that their creative creations can be protected, allowing them to be paid a fair price for their hard work.
Why brands need to create NFTs?
Brands are embracing NFTs to improve their offerings and stay ahead of the curve in technology. They find NFTs to be a winning technique for diversifying their income and attracting new clients. They feel it creates a special relationship between a company and its consumer.
NFTs feed the two foundational pillars of marketing strategy:
- New storytelling opportunities
- Interaction with the consumer
With NFTs, you can:
- give a unique brand identity
- increase brand awareness by advertising about it on diverse channels.
- encourage interaction with a new younger target.
- create interest in your brand and product with a different approach.
- improve your overall user experience by offering a playful, more diverse brand experience.
How brands are leading to innovation
Brand innovation fosters new ideas, inspires creativity, and aids marketing departments in moving their companies forward. Marketers may successfully and sustainably advance innovation with adequate planning.
Businesses can promote the perception that they make pioneering products by showcasing innovation to consumers. As a result, the corporation may build a customer's sense of reliability and that their revolutionary work benefits consumers personally.
Through psychologist research we have found that the way brands give off new ideas is a key motivation for consumers. Brand innovation is a crucial element of marketing strategy to empathize their products' value and unique traits.Brands that are Using NFTS
Brands that are Using NFTS
Dolce and Gabbana
Dolce & Gabbana offered an NFT collection of nine pieces of clothing and jewelry, which are said to have brought in 6.6 million euros.
McDonald's continues to make the McRib's return to menus a memorable affair. The McNFT, the fast-food giant's first NFT for the US market, accompanied the sandwich's most recent comeback. The non-fungible token looks like a collectible card with McRib's image as the focus and only costs a retweet! McDonald's chose ten fans out of over 95,000 who entered the competition to receive one of ten unique McNFTs.
Bacardi: Music Liberates Music
Music NFTs provide a unique revenue opportunity. Owners of music NFTs are progressively receiving a percentage of the track's streaming royalties as part of a growing trend in crypto-based music marketing. Bacardi started a campaign that addressed the issue of the gender gap that there is among producers, with women only accounting for 2%. The alcohol company teamed up with three up-and-coming female producers to market original songs as NFTs. The creators have already received almost $115,000 from the campaign.
Warner Brothers: "Matrix" avatars
Warner Bros. partnered up with social NFT platform Nifty's to offer 100,000 unique avatars NFTs for $50 apiece in honor of the upcoming film "The Matrix Resurrections." Starting November 30th, the avatars will be available in their most basic form. They will be handed out at random and hyper-realistic animated beings, who have become lost in The Matrix. Standard avatars will be offered to take either a blue or red pill two weeks later. It will transform the character into a resistance fighter with new outfits, accessories, and hairstyles.
Will the metaverse be our new social media?
The metaverse is a virtual universe made up of virtual reality, augmented reality, and video. It’s a place where everyone will have an Avatar with a 3D experience of playing, creating, gaming, or exploiting.
We know we need to pay close attention to this new trend because companies like Google, Microsoft, Facebook, and Snapchat are all about it at the moment. They all talk about how this is the future and predict that it will become a non-negotiable for all brands.
We already see Snapchat diving into the metaverse with its recent launch of fashion-forward Bitmojis. You can do things like dressing them with a specific brand and many other actions.
Facebook created facebook horizon where you can make an avatar as well. You can visit different worlds that are built around specific interests and topics.
If We are already seeing two major companies going into the metaverse we can assume that it will be crucial for the future of social media.
So, how can marketers prepare for this?
- Just like people had to adapt to the internet back in the day, marketers will change and adapt to the world of the metaverse.
- Brands will need to develop new branding strategies in three dimensions and process technology way faster.
- Brands will also have to think of unique communication methods to connect with their audience.
SEO and the Metaverse?
In the past, for marketers to get the most activity online, they had to adapt to optimization, to get found in search engines. Now, they have to start thinking about how to be found in the metaverse. Going back to the basics of SEO, we know that we have to choose a strategic keyword if we want to be seen. So, having a ”metaverse” product or headline will help get found in social channels and search engines
We have seen an endless number of marketing opportunities for brands when it comes to NFT. It's a whole new part of the digital world economy and the exciting future of the metaverse! More and more brands are joining the trend and reaping the benefits.