NFTs are digital assets transacted and recorded using blockchain, which ensures no asset can be counterfeited or duplicated. This is largely what has contributed to their popularity in the digital arena for everything from art to music and video games. With unique identification codes and metadata, NFT items are truly one-of-a-kind.
Undoubtedly, NFTs are also changing how brands view their marketing strategy and promote themselves on social media. DappRadar, a digital analytics company that tracks NFT data on various platforms, reports that the total market of volume generated by the NFTs in 2020 was $95 million, surging to $2.5 billion in the first half of 2021. That’s quite the number!
One of the ways that businesses can use them is to deliver unique and exclusive brand experiences, or as a way to interact with customers and increase brand awareness. Moreover, brands can use NFTs to build new revenue streams by selling digital goods. Personalization has also been a key marketing trend in recent years, and NFTs offer a way to deliver unique personalization. After all, NFTs are always one-of-a-kind in themselves. Moreover, brands can elevate their loyalty programs with unique experiences tailored to those that own their company’s NFTs.
Now that we’ve understood why NFTs are becoming so popular not only among artists but also among brands, let’s take a look at a few case study examples of big companies doing awesome things with NFTs:
Stella Artois offers 50 NFT horses, ready to virtually race. Beer brand Stella Artois has launched a campaign by auctioning off fifty rare horses in conjunction with the summer racing schedule. This isn’t just a static art sale, there’s a digital race track, which offers a virtual game, and winners receive a sliver of ETH.
Coca-Cola sold a handful of unique digital NFT art to fans, including a cooler, a jacket, and a unique sound experience for $500k (217 $ETH) resulting in press, media, and of course, new revenues from digital assets. Visit the official website to learn more about the campaign, artists, and events.
Mattel offers NFT Hot Wheels. If you collected these cars, you know the community is rabid about owning, racing, and enjoying these collectibles. Mattel’s campaign and offered three digital NFTs (only 1 quantity each) which sold for a handful of ETH each.
Visa has acquired a famed CryptoPunk for $150k, waking up the financial services markets to the possibilities. Visa will use this NFT in their digital museum as an artifact. While they didn’t design and launch their own, this is notable as a leading financial services company.
Ray-Ban is auctioning off its first, and only, NFT featuring the brand’s iconic Aviator sunglasses. The single NFT, created by German artists Oliver Latta, aka “Extraweg,” will be auctioned on OpenSea, with all proceeds going to charity. The auction begins Oct. 27 and ends Oct. 29.
Kellogg’s-owned Pringles announced the release of a limited-edition flavor that it’s calling CryptoCrisp during the height of NFT mania. There were 50 packages auctioned, but they only exist as NFT artwork. 10% of sales are going to the artist who created the NFT, H+ Creative.
Asics “Sunrise Red” digital shoe collection includes limited-edition digital sneakers as well as a “Gold Edition” of unique items sold directly on the brand’s site. Once more, the NFTs have a social slant to them: proceeds will fund the in-house digital artists who produced the artwork. NFTs are a great way for brands to bridge the physical and digital worlds. As Asics put it, the project “is a celebration of sport and a first step in building a future where digital goods inspire physical activity.”
As NFTs continue to rocket in popularity, we should expect to see more brands getting involved. After all, NFTs offer an incredible opportunity for companies to engage with their consumers while demonstrating their pioneering vision and relevance.