Published on the BBC, the first tweet by Twitter CEO Jack Dorsey was worth $2.9 million (£2.1 million) as a non-fungible token. Sounds surprising, right?
Today, the digital web is full of hype regarding NFTs. Costly virtual art and collectibles, peculiar in-game items, and digital fundraisers – are some examples of how NFTs are being used for marketing.
Now, we are on the verge of exploring a whole new universe, metaverse to be precise, that presents a plethora of marketing possibilities. And one of those possibilities is NFTs.
But what exactly is an NFT and how can they be used for marketing?
In this article, we’ll cover what NFTs are and how companies are implementing NFTs in their marketing strategies.
What are NFTs?
NFT, short for the “non-fungible token,” is a hot topic globally. To understand what exactly NFTs are, let’s break down the term:
Fungible means something that is exchangeable without impacting the individual value. Here, the mutually interchangeable goods are swapped out for another identical item in a fungible term.
Knowing this clarifies the meaning of “non-fungible” – the goods cannot be swapped out since the value they offer isn’t the same. You cannot swap an American Football Card with another, given they both have their unique value.
Similarly, Claude Monet’s “Water Lilies” cannot be replaced with Vincent van Gogh’s “Sunflowers.” They both are paintings but unique works of art which cannot take each other’s place.
In literal meaning, the token is a symbol, an emblem, an indication of something. When it comes to NFTs, the token means “ownership” of peculiar NFT items. You can tokenize many NFTs simultaneously, but one NFT can have only one owner.
Also, tokens work as virtual currency. Like Bitcoin, Litecoin, and other digital currencies, the token also refers to a type of virtual currency.
Also, these tokens in NFTs are protected by the Ethereum blockchain to protect an NFT’s ownership record from illegal modification and copying/pasting of another NFT item.
5 Surprising ways NFTs can be used for marketing
Image Source: The Hustle
Modern-day games are one of the top areas to market NFTs. This is because popular games like Fortnight involve detailed graphics and skins/outfits for their avatars.
This means you can create and sell NFTs in the form of digital pets, avatar skins, and other virtual stuff used in gaming.
Also, because games like Fortnight accept cryptocurrency to buy this apparel or other virtual merch, gamers are likely to invest in these NFTs. Thus, you can market your NFT within the game and even create an NFT-based business model to take it up to a notch!
NFTs have now become mainstream, and the gaming industry is in a unique position to leverage these digital assets and cash in on the craze.
In fact, it was reported that gaming startup Mythical Games raised $75 million to create a platform that uses NFTs in place of avatars which would allow players to sell or trade their NFT characters on the platform.
NFTs and gaming go hand in hand. And the gaming industry is utilizing NFTs to not only market their games and products, but to grow and foster a loyal user base as well.
2. Sell Tickets
Image Source: Aïda Amer/Axios
In recent years, there has been a massive shift in how people “pay” for goods. For example, now you can buy a ticket to your favorite concert or a sports event with an NFT using bitcoin.
No matter the type of event – workshops, trade shows, expos, and more – NFTs will serve as virtual tickets.
Not to forget the eye-catching, peculiar content the NFT will reflect, making it one of the best digital items to attract the audience. You can also design an NFT for a musical or sports event and have die-hard fans lining up for a ticket.
For example, Dallas Mavericks owner, Mark Cuban, sees big opportunities using NFTs and wants in on the action:
“We’re trying to find a good option for turning our tickets into NFTs. We want to be able to find ways so that, not only can our consumers, our fans, buy tickets and resell them, but we continue to make royalty money on them.”
Furthermore, virtual NFT Tickets can also include additional services, like drinks, meals, or t-shirts. And unlike a paper ticket that loses its value the moment the event is over, an NFT will retain its value.
3. Fashion Industry
Image Source: The Fabricant
While the fashion industry and NFTs might not seem like the perfect fit, they could end up being a match made in heaven.
And this is because the fashion industry is currently poised to piggyback off the success of NFTs in the gaming industry.
For example, digital platforms like The Fabricant Studio, will let you create your own digital NFT clothing that users can buy for their digital avatars in the metaverse.
And big fashion brands are also getting in on some NFT action. For example, Gucci partnered up with auction house Christie’s to create an NFT which sold for $25,000.
And Burberry partnered up with game developer Mythical Games, to create their own NFT called Shark Blanco that can be purchased and sold in-game.
NFTs and the metaverse offer fashion brands and designers the opportunity to create, market, and sell digital attire to millions, and potentially billions, of people who want their digital avatars to be adorned in the latest fashion trends.
4. Product Pre-orders
Image Source: Gary Vee
Every company and entrepreneur would like to have more pre-orders of their products. This not only helps with cash flow but it’s also a great way to gauge the public’s interest.
An exciting example of how NFTs can be used in pre-orders is with Gary Vaynerchuk. Gary Vee came up with a compelling offer that NFTs lovers couldn’t refuse.
What was his offer? Well, for his latest book, Twelve and a Half, every twelve books that you purchased, during a certain period of time, you would get one of Gary’s highly coveted NFTs.
This strategy was so successful that the presales of his book caused the release date of his book to be pushed back by two weeks.
At the end of the day, Gary ended up selling one million books all by using NFTs. And this also set a sales milestone of one of the largest advance orders of a book in a 24-hour period.
No doubt other companies and entrepreneurs have been inspired by Gary’s NFT marketing tactic and it’s likely that we’ll see more pre-launch strategies like this in the future.
5. Support a Good Cause
Image Source: Ledger Insights
It’s no longer enough for a company to sell quality products at competitive prices. If companies want to win the hearts of their customers, they must support worthy causes and give back to their communities.
In fact, a reported 84% of millennials say they would rather support brands that have strong values and offer transparency.
And companies are finding unique and creative ways to foster trust with their customers. Like Kinetic Sand, which offers a squeezable, moldable sand, that has quickly grown in popularity.
Kinetic Sand collaborated with artist Dan Lam to create and sell NFTs to help raise money for the Boys & Girls Clubs of America, so they can grow their arts and creative experiences programs.
Even charities are starting to collaborate with celebrities, musicians, athletes, and other influencers to create and sell their own NFTs.
NFT stands for a non-fungible token – a virtual item, a digital asset designed for selling and purchasing purposes. NFTs only have one owner, and the Ethereum blockchain secures the copyright claims.
NFTs provide companies with a new way to market their business, promote new products, and reach new audiences.
Some of the industries that are implementing NFTs into their marketing strategies include gaming, fashion, and publishing, just to name a few.
Whether NFTs are a viable long-term marketing strategy is yet to be determined, and only time will tell if NFTs are here to stay.
One thing is for certain, there is a lot of attention and interest in NFTs, and some companies are starting to see the benefits of implementing NFTs into their marketing strategy.
Guest author: Luke Parker is the founder of LukeParker.com where he helps entrepreneurs optimize and scale their online businesses. Luke is passionate about entrepreneurship and marketing, and he is always looking for new ways to optimize his life and business.