NFT AND MARKETING: IS THIS THE FUTURE?
We are witnessing strong growth and a new phenomenon in the digital world: NFTs, non-fungible tokens. From culture to fashion, luxury, cosmetics, food or real estate, the market is exploding. More and more users are investing in this blockchain-related technology. These digital tokens are shaking up the rules and prompting major brands to rethink their marketing and communication strategies.
Opportunities that open up for brands:
- Protection of intellectual property
- Brand promotion
- Building customer loyalty
- Creating user communities
- Riding the crest of a huge wave
NFT: WHAT IS IT?
DEFINITION OF NFTS
The acronym NFT stands for "non-fungible tokens". They are cryptographic and virtual elements based on blockchain technology. What is special about NFTs? They have unique identification codes. They are immutable proofs of digital ownership, thereby guaranteeing authenticity to buyers. They cannot be exchanged or traded, unlike cryptocurrencies.
THE APPEARANCE OF NFTS
Born in the world of cryptocurrencies and virtual games, non-fungible tokens were initially favored by a niche population: geeks. They were used to mine cards for virtual games on certain platforms, such as NBA Top Shot. NFT then spread thanks to the game Cryptokitties, unique virtual kittens that have to be raised.
This new technology, closely tied to the concept of the metaverse, conquered new markets, especially digital art, and spread to fashion, luxury, food, and even real estate. At the beginning of 2021, the NFT market was worth $2.7 billion and reached $10.7 billion in the third quarter of 2021, exponential growth that convinced brands to invest in this technology and integrate NFTs into their communication strategies and marketing campaigns.
NFTS: A GREAT MARKETING OPPORTUNITY FOR ANY BRAND
Non-fungible tokens are the new trend not to be missed. To develop their services and stay on the cutting edge of technology, brands are adopting NFT. A winning strategy that allows them to cleverly diversify their revenue and attract the interest of new customers. It is a new way to create a privileged relationship between the brand and the consumer and to strongly engage and bring members together within a strong community.
A TECHNOLOGY THAT IS A HIT IN THE CULTURAL SECTOR
These digital tokens quickly found their way into the world of art, giving rise to crypto art. A new form of digital art that comes from blockchain technology, in the form of videos, images, music, or GIFs.
Many artists, such as Beeple, offer original digital works for sale in whole or in part. Thanks to NFT technology, their works have a unique serial number and are protected from any reproduction. A small revolution, since until now artworks were fungible. In this way, buyers and collectors are sure they own a unique and immutable work of art.
On the art market side, this is a real revolution that is shaking up the traditions of this sector. NFT are accessible to a larger number of people and attract new audiences who have not necessarily invested in traditional art. Millennials are an example of enthusiasts of this emerging art.
In cinema, the NFT trend is also seductive. The platform Vuele released the first feature film starring Anthony Hopkins, using non-fungible keys. Soon Quentin Tarantino will reveal 7 exclusive scenes from his famous film Pulp Fiction.
NFTS ARE TAKING OVER THE FOOD INDUSTRY TOO
After conquering the cultural world, it is now the turn of fast-food giants to be seduced by this technology. In March 2021, it was the fast-food chain Taco Bell that jumped into the market to offer collectible tokens called Taco Art, which represented artistic illustrations of the chain's offerings.
They were quickly followed by Burger King, which launched its own marketing campaign, 'Keep it Real Meals.' A set of digital collectibles to be obtained in the form of a game that provides access to unique gifts upon receiving three NFT.
McDonald's also joined the trend, celebrating the return of its McRib. The American subsidiary launched a limited edition of non-fungible tokens in honor of its sandwich. As for the Chinese franchise, it created 188 NFT for customers and employees to celebrate its 31st anniversary. In France, the brand with the iconic yellow M offered 4 digital artworks in 5 copies, to be won through a social media contest. An operation that was very successful!
In Canada, the Pizza Hut restaurant chain innovated by offering virtual pizzas sold separately.
In the broader food industry, the Pringles brand launched a product that is, to say the least, original: 50 virtual packs of 'CryptoCrisp'.
FASHION AND LUXURY HAVE JOINED FORCES WITH DIGITAL FASHION
Major luxury fashion brands are shaking up the platforms and reinventing fashion in favor of the digital wave. Big names, in search of originality and constant innovation, have invested in NFT. Non-fungible tokens in fashion and luxury can be offered in different forms: digital twins, rare digital assets in the metaverse, or even digital collections.
NFT offer the fashion and luxury sector an opportunity to fight counterfeiting.
In March 2020, the Italian brand Gucci launched a virtual duplicate of its pair of sneakers Virtual25. A little more than a year later, Nike made a splash and auctioned off completely fictional sneakers. More recently, Dolce & Gabbana offered an NFT collection of nine garments and pieces of jewelry that brought them 6.6 million euros.
THE SUCCESS OF NFTS WITH THE GENERAL PUBLIC
DIGITAL SCARCITY
It is no coincidence that the use of NFT has been so successful. Consumers are captivated by the opportunity to acquire digital objects with symbolic, unique, and tradable value. They become the proud owners of a work or authentic item that is neither reproducible nor counterfeitable. Collectability and rarity are therefore what strongly attract consumers to NFT.
For others, NFT are tools for investment and speculation. Acquiring the right tokens can lead to big gains. This explains the continuous growth of the NFT market across all sectors.
A NEW CUSTOMER EXPERIENCE
Cutting-edge technological innovations allow brands to reinvent themselves and offer a better customer experience. Such is the case, for example, with Kinahan's metaverse projects. The famous whiskey house announced the creation of its own metaverse (virtual world) in order to have digital ambassadors. The ambassadors take part in the brand's various campaigns. A close and exclusive relationship that encourages loyalty.
The NFT phenomenon allows brands to offer a unique digital experience to their customers while providing them with increasingly exclusive services.
With such growth and the important role this technology will play in the metaverse (virtual and augmented reality could boost the global economy by 1.9 trillion euros by 2030), NFT is becoming the new playground for brands and a marketing trend to keep a close eye on!
If you would like to discuss how you can integrate NFT technology into your business, you can contact us as clicking here.
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