How Ambitious Brands Are Using NFTs Inextricably With Their Brand Storytelling
Introduction: What Is an NFT?
Non-fungible tokens (NFTs) are a type of digital token that is unique and can’t be replicated. They are typically used in gaming, but they have also been used in other industries such as art, real estate, and finance. NFTs are a new form of digital collectible that can be traded or sold on the blockchain.
Just like other types of crypto tokens, NFTs have a unique ID that is stored primarily on the Ethereum blockchain. This ID is what makes them non-fungible, which means that each one is different from all the others and has its value.
NFTs are not limited to just one use case and they can be used in a variety of ways — for example, as in-game items or trading cards in games such as CryptoKitties, as digital representations of real-world assets such as cars or houses, or even to represent ownership rights in physical spaces such as art galleries.
How Have Non-Fungible Tokens Disrupted Traditional Marketing & Advertising Methods?
Non-fungible tokens are a new form of a digital asset. Non-fungible tokens are an open, transparent, and cryptographically secure way to represent ownership or authenticity of any type of digital asset from physical goods to virtual goods in a virtual environment.
NFTs can create a new decentralized digital marketing and advertising ecosystem. NFT is a marketing trend that is quickly gaining momentum. Brands are using NFT to advertise their services and products, making it a viable marketing trend.
Brands use collectibles to tell their brand story in a way that is more engaging and personal than other forms of marketing. Brand storytelling is a key marketing technique. It helps them to connect with their customers and build a strong relationship with them. A brand’s story is their narrative of how they came to be, what they stand for, and the values that they want to share with the world.
Brands use collectibles as an opportunity to tell their story differently. Collectibles are often seen as ‘treasures’ or ‘objects of desire’. They are also assigned symbolic meaning and can be used as a way for people to express themselves or show off their personalities. Brands have been using collectibles for years as branded merchandise, but the way they use them has changed over time. Brands are starting to use NFT collectibles as a way to drive sales. This allows customers to buy and trade the collectible with others. These items are more desirable and less expensive than other branded merchandise, which is why it has been so effective for brands in recent years.
Non-Fungible Tokens, or NFTs, are not very different from the collectibles of yesteryear like sports cards or baseball cards. Both are used to represent some value or status. Brands such as Coca-Cola and Nike have already adopted this method of marketing as it has proven to be effective at representing value and status.
Collectibles are the new merchandising trend. They can strengthen brand value because they make customers feel like they have a personal connection with the company. Customers can feel like they are part of something special, and collectibles allow them to show off their fandom.
For collectibles to be successful, companies need to create a sense of exclusivity and limit supply. If a company releases too many items, fans will not want them anymore because it makes them feel like they cannot own everything. NFT, therefore, makes sense.
NFTs in the Real World: Benefit to Using As Brand Collectibles
There are many benefits to the use of NFTs in the real world. The most notable ones are that they can provide a more secure and transparent way of exchanging goods. They also help with the issue of counterfeiting because each token is unique, which means that it is not possible to have a duplicate token. For brands which mean there is no risk of counterfeit products being sold to their customers and damaging the brand’s reputation.
NFTs have a lot of benefits for brands that use them as collectibles. One of the most important benefits is that they help tell stories better. Brands can create an entire story around their product and share it with customers through NFTs, which makes it easier to engage with customers and build a brand identity.
NFTs are a great way to get your brand out there, especially if you have a smaller budget. This is because they are cheaper than physical items and they don’t require any shipping costs.
What Brands Are Doing With NFTs?
In recent days, brands have leaped aboard the multi-million dollar NFT bandwagon. Brands like Nike, Taco Bell, Charmin minting their non-fungible tokens.
As early as two years ago, Nike noticed the NFT trend coming and patented NFT shoes called CryptoKicks. The idea is to ‘breed’ different designs of shoes, and then create new, custom sneakers that can even be made in the real world. The concept pays tribute to one of the first NFT releases, CryptoKitties, which allowed users to breed virtual cats.
Pizza Hut Canada and its marketing partner Ogilvy put pixelated pizzas on Rarible for 0.0001 ETH ($0.18). It was intended to be affordable, the same cost as a bite of pizza.
https://twitter.com/PizzaHutCanada/status/1372206654700322818
Pringles, owned by Kellogg’s, has announced a limited-edition flavor called CryptoCrisp, available only as NFT artwork.
https://twitter.com/Pringles/status/1372242606902673409
Fast-food chain Taco Bell launched an NFT collection, which promptly sold out. Taco Bell created five NFTs, each selling for 0.001 ETH ($1.79), which is a pretty affordable price when it comes to NFTs. Nevertheless, the demand for Taco Bell NFTs was so high that some collectors were asking for close to $200,000 on the resale market.
https://twitter.com/tacobell/status/1368807880434982912
Procter & Gamble lavatory-paper brand Charmin’s NFTs went for 0.15 ETH ($264.72), and proceeds went to humanitarian aid charity Direct Relief.
https://twitter.com/Charmin/status/1372157127280766981
How Creatives Can Use NFTs in Their Narratives
NFTs can provide an interesting way for creatives to monetize their content and make it more interactive with the audience. The use cases of NFTs include:
NFTs have been around for decades but they were not until recently that they became mainstream and widely used by brands. As we see, NFTs are disrupting the traditional form of brand storytelling. While the best is yet to come, the future of NFTs is looking bright. With the metaverse on its way, NFTs will be able to create an immersive and interactive experience for their customers.
Originally published at https://arijitdutta.com on March 26, 2022.
