NFTs - Are they becoming as relevant for marketing and communication as social media?
NFTs are very popular in 2022 and some companies are already using them in their marketing strategies. Over the past year, companies increasingly use NFTs to engage with their fan base, generate a community and another revenue stream. That's because more and more companies are starting to develop their own NFT projects. How will NFTs shape the future of marketing and communications?
Interestingly, social media platforms such as Twitter share a similar history to NFTs today. At first, people were sceptical and uncertain about them. Today, Twitter is one of the most successful social media platforms where thought leaders, celebrities, and users from all over the world share ideas. At the same time, it serves as a central hub for politics and corporate communications. Bringing diverse target groups together and facilitating meaningful interactions amongst them, social media platforms became the perfect playground for marketers and brands
NFTs as a branding opportunity
NFTs offer brands and companies the opportunity to quickly stand out in their respective fields and build a community. They enable companies to reward their fans and supporters, thereby generating added value. Companies create a benefit for members of their NFT community through NFTs. For example, NFTs can be used as tokens for discounts, combined with shipping additional products, or as a digital product. The more popular the token becomes, the higher its price can go, generating another revenue stream for the company.
The attention generated around NFTs increases brand awareness. If a company effectively distributes NFTs, this will strengthen the brand and increase its attention in the media. Thus, companies and brands can significantly increase their reputation and popularity through NFTs with the right communications strategy.
How NFTs can be useful in communications
One of the most prominent examples for a successful usage of NFTs in brand communications orginates from the United States. The fast-food chain McDonald’s celebrated the tenth anniversary of its popular McRib burger with the launch of their very first NFTs. T NFT itself was designed as a burger and instead of simply selling it, a competition was launched on Twitter. Among all participants who shared the tweet, 10 NFTs of the burger were raffled. Around 100,000 users took part in the competition and the tweet received 57,000 likes. Not only didMcDonald’s managed to get a majority of Twitter users interested but also achieved additional attention through retweets from users who were not part of their fan base.
Currently, NFTs are used primarily in two ways: On the one hand, the purchase and sale of digital products. On the other hand, they are used to build communities, such as exclusive memberships linked to NFTs. Other brands and companies can easily adopt these two strategies of using NFTs to solidify their brand visibility.
There are also numerous uses of NFTs in the B2B space, and some opportunities in the Metaverse as well. For example, customer programs there can be managed via NFTs. For example, loyalty points can be stored on the blockchain in an uncopyable manner for each transaction, similar to the Payback card. Only when a certain number of points is reached rewards can be issued. The traceability of the points creates a targeted customer approach.
Products and trade fairs in the metaverse
In addition, trade fairs and product demonstrations can be held in the Metaverse: For example, multinational beauty retailer Sephora developed an AR campaign that allowed users on Instagram to experience the scent of a perfume through colors and visualization. Thus, during the global pandemic, while all physical stores were closed, Seophora managed to showcase their products and …
Also, runway shows of the Fashion Week are already taking place purely virtually on the decentralized 3D platform. For example, 70 clothing brands have participated in a virtual Fashion Week on the platform. Brands such as Estée Lauder, Tommy Hilfiger, Dolce & Gabbana and Forever 21 are participating in the virtual fashion event. Many have spent weeks staking claim to Metaverse-ready brands. With digital merchandise and shopping experiences, Decentraland's Fashionweek aims to provide a space for people to express themselves and live it up on their avatars using wearables.
NFTs change communication and economy
All of this is just the beginning. As was the case with social media in the 2010s, potential uses can only be guessed at. As was the case back then with social media platforms such as Twitter, Facebook and the like, NFTs will also go through a wide variety of development stages and constantly improve. For this reason, now is the chance for companies to get involved with the technology behind NFTs while they are still in the early stages of their development and offer them an advantage as a first mover.
For blockchain and crypto communications, PIABO is the place to go. Current customers of the Blockchain cosmos include DFINITY, the xx network or or financial service providers such as etoro. If you have any questions, feel free to contact our Practice Director Paul Gärtner.