Brands of all sizes are shaking up their marketing strategies with NFTs. In this post, we'll explore the versatility of NFTs and look at some creative real-world examples.
In January 2022, the world's largest NFT marketplace, Opensea, reported a single-month trading volume of $4 billion. According to Forbes, the CEO of wealth advisory DeVere Group, Nigel Green, attributed this boom in NFT sales to an increase in global sports franchises, fashion brands, and celebrities utilizing digital collectibles.
Since then, many household names like have launched NFT collections. Their motives? To build brand awareness, enhance customer loyalty, or just to stay top-of-mind.
Whether you represent a luxury fashion brand, create content online, or simply want to improve customer engagement, NFTs can help.
Why add NFTs to your marketing mix?
An effective marketing strategy hinges on how well it aligns with your brand identity. Simply mirroring others without reason usually falls flat. Here are a few reasons to factor NFTs into your marketing strategy:
- Loyalty programs: Brands are increasingly creating Web3-based loyalty programs that let customers earn tokens (NFTs) that can be traded for goods, services, or exclusive perks. Starbucks, Adidas, and Dior have all launched successful Web3 loyalty programs in the last couple of years. This next level of loyalty program offers customers increased levels of personalization, transparency, and flexibility.
- Brand awareness: NFTs can be used to create a buzz. Lacoste’s June 2022 UNDW3 collection of 11,212 crocodile profile picture NFTs sold out in eight hours.
- Customer engagement: When factored into a loyalty program, NFTs can drive customer engagement in several ways, including, community access, experiential rewards, and frictionless transactions.
- Limited edition products: You can release unique or limited edition products as NFTs that act as a digital twin and prove ownership.
- Content monetization: Content creators can sell their digital works as NFTs, providing a new revenue stream and a way to connect directly with their fans.
- Community building: Why not use NFTs to build a tight-knit digital community? Communities inspire customers to actively engage with your brand, addressing many of the challenges that traditional marketing struggles to overcome.
- Fundraising: Companies can create NFT collections to raise funds for specific projects, initiatives, or causes. This can provide a more engaging way for supporters to donate and feel connected to the cause. In March 2022, for instance, a bunch of artists launched new NFTs to raise money for Ukraine.
- Partnerships and collaborations: The interoperability of blockchain technology that powers NFTs and Web3 makes cross-collaboration with other brands easier than ever.
- Gamification: Brands can gamify their marketing campaigns by incorporating NFTs. For example, customers could earn NFTs by participating in brand contests or scavenger hunts.
Inspiration from NFT success stories
Lacoste, Nike, and Starbucks are a few of the big brands using NFTs successfully in their marketing mix. But there are lesser-known examples of NFTs being used in new and creative ways.
Make spectators part of the game
The Australian Open (AO) was the first Grand Slam that launched 6,776 unique AO NFTs. These AO Art Ball NFTs were matched with 19cm x 19cm sections on the tennis court. If the championship point landed on the plot, the NFT owner would receive a prize. These AO NFTs also provided users with limited-edition wearables and merchandise.
Conserve the Amazon Rainforest
Nemus artfully intertwines conservation with commerce by offering NFTs that serve as sponsorships for sections of the rainforest. Nemus’s NFTs come with striking art that represents different animals that call the rainforest home.
Create superfans through experiential marketing
Platforms like Autograph.io are redefining fandom by transforming celebrity autographs into NFTs.
These digital tokens bear the hallmark of authenticity and unlock a suite of additional perks and immersive digital experiences. While a physical item might not always accompany these NFT autographs, their inherent digital verification system proves ownership.
Mapping out your NFT strategy
Start by doing a thorough review of your current digital marketing strategy. What are the main channels your brand uses? What content resonates best with your audience? How effective is your current strategy?
Review your key marketing metrics to figure out where the gaps are. Your NFT strategy should be an extension of your digital strategy. For instance, if there's a lack of engagement from younger demographics or no community around your brand, NFTs could provide the necessary spark.
While developing an NFT strategy might sound daunting, it's not something you have to tackle alone. At Step3, we’re to support you every step of the way.