NFTs Could Help Your Brand’s Marketing Strategy 

The NFT, or “non-fungible token,” isn’t a new concept. NFTs have been around since 2014, but their popularity has only grown in recent years, with more than $174 million spent on them between 2017 and 2022.

What is a Non-Financial Transaction (NFT)?

NFTs are Ethereum blockchain-based digital assets that serve as records of ownership for digital objects such as videos and tweets, as well as tangible items such as tickets and works of art. When you acquire an NFT, it usually comes with basic usage permissions, such as the ability to share it online. Each NFT is a one-of-a-kind token on the blockchain that may be bought and sold on exchanges like OpenSea and Rarible and acquired with any currency the seller requests.

In recent years, even prominent brands have begun to experiment with NFTs. Here are three reasons why brands should consider NFTs in their marketing plan.

Related Blogs: How to Start NFT Minting Platform Development With Ease

(1) NFTs have the potential to assist marketers to reach out to new gamers.

This could be beneficial for firms that aren’t currently involved in the gaming industry. Burberry first entered the NFT market in 2021, when they teamed up with Mythical Games to launch an NFT collection for Blankos Block Party.

Burberry designed an NFT shark toy that can be bought, updated, and sold in the Blankos Block Party marketplace, which is a multiplayer party game that utilizes digital vinyl toys on a blockchain. To enhance brand recognition throughout the game, Burberry planned to produce in-game NFT accessories to apply to the toys, such as a jetpack and pool shoes.

(2) NFTs can assist in increasing brand engagement.

NFT collectibles have been released by a number of brands so that fans can own one-of-a-kind digital assets that reflect their favorite brands. The Pepsi Mic Drop, a limited collection of 1,893 NFTs, was Pepsi’s first brand NFT in 2021. Aside from the gas prices necessary to manufacture the NFTs, they were free for consumers to access and mint. To honor the brand’s long history with music, the NFTs included microphone imagery.

The Pepsi Mic Drop NFTs on the OpenSea marketplace have 1,200 owners and have been traded 2,800 times.

(3) NFTs provide a platform for brands to create and sell new products.

Other firms have made NFTs available for purchase so that users can try out virtual representations of their real-world products. Nike bought RTFKT Studios, a virtual shoe startup, last year in order to engage more directly with sneaker collectors. RTFKT is well-known for partnering with artists to sell collectors real and virtual sneakers.

NFTs Continue to Grow in Popularity

We urge that businesses maintain an eye on the NFT market for the time being, particularly in the art, sports, collectibles, and moments-style categories. The market is still growing, with sales reaching $24.9 billion in 2021, up from $94.9 million in 2020.

The NFT business is still unfamiliar to only 20% of Americans. It’s difficult for firms to invest in a type of creative that many customers don’t understand or relate to. NFTs may potentially be unsustainable in the long run, as the Ethereum blockchain requires a lot of energy to create, sell, and store.

Final Thoughts

It isn’t the digital image or the perceived monetary value of an NFT that matters. It’s about the underlying technology (smart contracts) and how it can shift businesses’ and consumers’ relationships from transactional to intimately linked.

Brands may now engage consumers in new ways thanks to the new economic model. And those customers will be able to benefit from the brands’ success in ways that were previously unavailable.

In due time, the marketing sector will most certainly be shaken up, with players who properly grasp the space emerging victorious. Now is the greatest time for your company to take the lead and determine NFT’s future. Hence, it is the best time for entrepreneurs and businesses to invest in such technologies. It is challenging to turn the idea into reality; therefore, some NFT token development company can help businesses with gained expertise in this domain and share their expertise with startups and companies to develop good future products. 

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