Do you know that after David Hockney and Jeff Koons, digital artist Beeple has sold an NFT collage of his work for $69 million in March 2021, making him the third most expensive artist at auction? Which is amazing, isn't it?
NFTs have created a new type of world by allowing digital producers, artists, companies, and others to sell exceptional and unique digital assets to a single owner. NFTs have also provided companies an amazing opportunity to offer their customers a whole new set of experiences, create their communities in new ways, and improve their brand recognition and loyalty.
So, here comes a question, what are NFTs, and how do brands use them? This is an example on who DWISS is using it.
Let's find out about it.
What is meant by NFT?
NFT is typically stands for "non-fungible token," which prompts the question: why aren't they fungible, and what exactly does non-fungible mean?
"Non-fungible" basically specifies that it is exceptional and can't be substituted. A bitcoin, for example, is fungible: swap one for another, and it makes no difference which Bitcoin you have; because they all have the same value and fulfill the same function.
NFTs, on the other hand, are unique and cannot be traded. A Beatles CD, for example, is a fungible token; you pay for it and get your CD; however, the guitar that John Lenon played at the band's first concert is non-fungible since it is unique; no other instrument looks like it. If you wish to view it, these tokens are similar to diamonds because no one else has one like you.
In simple words,
Basically, an NFT is considered a digital asset that binds ownership to unique digital assets, such as pieces of art, real estate, music, movies, etc.
NFTs are generally considered as collectibles in today's world. They're purchased and sold over the web and are known as digital proof of ownership for every specific object. It may also be more difficult to change or duplicate them due to the use of the latest technology. NFTs are securely stored on a blockchain — the same technology that underpins cryptocurrencies, ensuring irreplaceable assets.
This digital craze began in 2017 with the CryptoKitties, a hybrid of Tamagotchi and trading cards that introduced this type of item to the digital world. Each of these computerized digital art costs $140,000.
What makes NFTs so special for brands?
NFTs are far more than just "digital assets," whether they're works of art, music, photography, virtual reality experiences, or anything else. A new community has now built up around NFTs, made up of artists and creators who feel empowered by the opportunity to sell their work freely and earn an income for themselves. Due to this visibility, brands are naturally drawn to the NFT trends with good cause.
Offering delightful experiences to followers and consumers for your brand's products or services is a crucial part of any smart marketing strategy. This aids brands in forming communities, developing connections that lead to loyalty and support, and increasing consumer lifetime value.
This is exactly what NFTs provide. As a result, companies like Taco Bell, Crockpot, Campbell's, Twitter, and others have jumped into this ever-growing sector, with more joining them every day.
How Are Brands Using NFTs?
Luckily, you will find new examples of companies incorporating non-fungible tokens into their marketing and social media strategy every day. Here are a few creative ways brands are using NFTs. Hopefully, they'll provide you with some ideas.
TacoBell, which is famous for its occasionally risky digital marketing stunts, sent out 25 NFTs to honor the reintroduction of potatoes to their menu earlier this year.
As a result, they became the first fast-food company to embrace the NFT movement. All NFTs were claimed within 30 minutes, with one of them selling for as much as $3,646 and being resold for as much as 10 ETH.
Furthermore, TacoBell declared that all earnings from the original sale and money collected from resales (due to a modest royalty paid to the brand) would go toward its Live Más Scholarship program.
Sneaker enthusiasts are known to pay very high prices for limited edition Nikes, and the brand has used this trend for the NFTs aspect.
This famous company has now allowed you to purchase digital versions of Cryptokick pairs of shoes, which you can preserve in your virtual locker.
Although these shoes cannot be worn in real life, they can be worn by your characters in video games such as Fortnite, giving you a pair that will look incredible on your characters.
In honor of International Friendship Day, the Coca-Cola Company created a series of digital collectibles to re-create some of its classic assets for the metaverse.
A future version of the Coca-Cola delivery jacket, which users may wear on Central, and a decentralized 3D virtual reality platform were among the many unique products in this collection.
The world's leading organization for disabled athletes, Special Olympics International, received profits from this campaign.
Adidas has recently announced that its upcoming collection will be a combination of digital and physical objects that will be offered as NFTs in collaboration with other famous brands like Bored Ape Yacht Club and Punks Comics.
The collection, dubbed 'Into the Metaverse,' will include virtual wearables that purchasers can use on online platforms and match with their real clothes.
Adidas is presenting the launch as a chance to interact with fans and join "the vanguard of innovation," according to chief digital officer Scott Zalaznik.
The first watch company to create a collection of watches in NFTs, the same collection will be available to purchase in the metaverse by the holders of these NFTs. The innovative project consists in 10’000 hyper-realistic watch renderings inspired on the real watches by the Swiss design awarded microbrand DWISS.
In the end, you can say that the examples mentioned above are just a few of the many ways that different famous brands, organizations, and artists are taking up in the NFT movement. Brands have a whole new marketing field thanks to non-fungible tokens. This allows them to develop new and innovative methods to engage with their fans and followers, raise brand exposure, and generate new income streams.