The buzz surrounding NFTs increasingly has to do with expanded use cases outside of collecting and flipping them for profits. And let’s be honest, you have to be very good, very lucky or be on a whitelist to make money trading NFTs. Today, NFTs are being used for marketing in a variety of ways, including expensive virtual art and collectibles, unusual in-game items, and digital fundraisers.
Until recently, businesses relied primarily on time-tested tactics such as paid advertising, affiliate programs, social media marketing and TV ads.
We are now on the verge of exploring a completely new world, a metaverse, which offers myriad marketing opportunities for brands and individuals. NFTs are one of those opportunities.
But what exactly is an NFT, and how can it be used in marketing?
In this post, we’ll touch on what NFTs are and how businesses are incorporating them into their marketing strategies.
What exactly are NFTs?
Collins Dictionary named NFT the word of the year for 2021 helping make the acronym even more widely recognized. Let’s take a look at NFTs to better understand what they are:
Non-fungible
Fungible refers to something that can be exchanged without affecting the individual value. In a fungible term, the mutually interchangeable goods are swapped out for another identical item. In this examples a US $100 can be exchanged for another because they are fungible and of equal value.
Knowing this clarifies the meaning of the term “non-fungible” – the goods cannot be exchanged because the value they provide is not the same. Because each American Football Card has a distinct value, you cannot exchange them.
Similarly, Three Musicians by Pablo Picasso cannot be replaced by DaVinci’s Last Supper. They are both paintings, but they are distinct works of art that cannot be substituted for one another.
As a result, NFTs are non-fungible – digital assets that cannot be exchanged but can only be sold and bought.
Token
To put it simply, a token is a symbol, an emblem, or an indication of something. In the context of NFTs, the token denotes “ownership” of unusual NFT items. Many NFTs can be tokenized at the same time, but each NFT can only have one owner.
Tokens can also be used as virtual currency. The token, like Bitcoin, Litecoin, and other digital currencies, is a type of virtual currency.
Furthermore, these tokens in NFTs are protected by the Ethereum blockchain, which prevents an NFT’s ownership record from being illegally modified or copied/pasted into another NFT item.
NFT (non-fungible token) is an un-exchangeable, one-of-a-kind item protected by the Ethereum blockchain. An NFT cannot be copied and can only be owned by one person at a time.
Here are 3 hot marketing use cases for NFTs:
1. Gaming
Modern games are a popular way to market NFTs. This is due to the fact that popular games, such as Fortnight, feature detailed graphics and skins/outfits for their avatars. This means you can make and sell NFTs in the form of virtual pets, avatar skins, and other gaming-related items.
Furthermore, because games such as Fortnight accept cryptocurrency to purchase this apparel or other virtual merch, gamers are more likely to invest in these NFTs. As a result, you can market your NFT within the game and even develop an NFT-based business model to take it to the next level!
NFTs have now gone mainstream, and the gaming industry is in a unique position to capitalize on the craze by leveraging these digital assets. Indeed, 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 gaming are inextricably linked. And the gaming industry is using NFTs not only to market their games and products, but also to grow and maintain a loyal user base.
2. Ticket sales
There has been a significant shift in how people “pay” for goods in recent years. For example, you can now use bitcoin to purchase a ticket to your favorite concert or sporting event via an NFT.
NFTs will serve as virtual tickets for any type of event, including workshops, trade shows, and expos.
Not to mention the attention-grabbing, unusual content that the NFT will reflect, making it one of the best digital items to attract the audience. You can also create an NFT for a musical or sporting event, which will have die-hard fans lining up for a ticket.
For example, Mark Cuban, owner of the Dallas Mavericks, sees big opportunities in NFTs and wants in on the action:
“We’re looking for a good way to convert our tickets into NFTs.” We want to be able to find ways to ensure that not only can our customers, our fans, buy and resell tickets, but that we can also profit from them.”
Additionally, virtual NFT Tickets can include additional services such as drinks, meals, or t-shirts. Moreover, unlike a paper ticket, which loses its value once the event is over, an NFT retains its value.
3. Fashion
While the fashion industry and NFTs may not appear to be a natural fit, they may end up being the most profitable use case.
This is due to the fact that the fashion industry is currently poised to capitalize on the success of NFTs in the gaming industry.
Digital platforms such as The Fabricant Studio, for example, will allow you to design your own digital NFT clothing that users can purchase for their digital avatars in the metaverse.
Big fashion brands are also getting into the NFT game. Gucci, for example, collaborated with Christie’s to create an NFT that sold for $25,000.
Burberry also collaborated with game developer Mythical Games to create their own NFT, Shark Blanco, which can be purchased and sold in-game.
Fashion brands and designers can create, market, and sell digital attire to millions, if not billions, of people who want their digital avatars to be dressed in the latest fashion trends thanks to NFTs and the metaverse.
The opportunities for fashion and NFTs are truly limitless. Consider yourself the metaverse’s next Prada, Gucci, or Nike. In the metaverse, anything is possible!
Final thoughts
NFT are digital assets designed for collecting, selling and purchasing. NFTs have a single owner, and the blockchain (Ethereum, Polygon, Solana) protects the copyright claims.
NFTs give businesses a new way to market their products, promote new products, and reach new audiences.
Gaming, ticket sales, and fashion are just a few of the industries that are incorporating NFTs into their marketing strategies.
It remains to be seen whether NFTs are a viable long-term marketing strategy, and only time will tell if NFTs are here to stay.
One thing can’t be ignored: there is a lot of interest and attention (and money) focused on NFTs, and big brands are beginning to see the benefits of incorporating NFTs into their marketing strategy.