Last Updated on January 22, 2024 by Asfa Rasheed
Creating experiences for brands’ audiences is a profitable way to leverage non-fungible tokens (NFTs) as marketing strategies to sell digital assets. Because NFTs are relatively new on the market with limitations, millennials and investors are spending hundreds of thousands of dollars for art, footwear, and other products. It is an obvious indicator that they will remain relevant in the future as new technologies are in development. Powering NFTs are blockchain technologies or distributed ledgers which have a significant role in the digital world.
Marketing professionals are witnessing non-fungible tokens creating new strategies for brands to engage with their customers. Blockchain technology allows buyers and sellers to secure decentralized NFT transactions for transparency. Now is the time for brands to explore opportunities for NFTs as a part of their digital marketing strategies for products, items, charities, and campaigns. First, we will review the definition of an NFT followed by four brands presently using them as marketing strategies.
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What is a Non-Fungible Token?
SEC (Securities Exchange Commission) defines an NFT as a digital asset issued and transferred using a distributed ledger or blockchain technology. Using blockchain technologies establishes ownership, security, and transparency of non-fungible token assets, including art, digital collectibles, and gaming. You can purchase or sell those assets on reputable auction platforms, such as Christie’s and Rarible. NFT enthusiasts can keep up the digital marketplace at https://www.okx.com/markets/prices and view non-fungible token collections.
Four Brands Presently Using NFTs
1. Mike Winkelman’s Beeple Artwork
Artist Mike Winkelman sold his JPG file for over $69 million, making him one of the top three living paid artists during the time of the auction. He sold his file as an art piece and was Christie’s first NFT to auction on its website.
2. Grimes
Collecting $6 million from her collection of videos is female artist Grimes. She auctioned her music using ten non-fungible tokens after partnering with Nifty Gateway, an auction site. Brands can market their talents or products and auction NTFs for charities or hold contests to give as prizes.
3. RTFKT Virtual Sneakers
During a Chinese New Year holiday, RTFKT, a virtual sneaker brand, sold its NFT sneaker for $28,000 after placing it up for auction. It was the beginning of the brand generating money, which increased to $3 million after collaborating with FEWOCiOUS, an artist aged 18.
4. Taco Bell
Taco Bell began utilizing non-fungible tokens to market their NFT GIFs to support their foundation’s Live Mas Scholarship Program. As soon as the food restaurant brand placed 25 NFTTacoBells on the Rarible NTF marketplace, buyers immediately purchased all of them.
Benefits of NFTs
- Increases value of digital assets.
- Useful as marketing design tools.
- Decentralized transactions without the control of governments or the Central Bank.
- Technology featuring security, transparency, and ownership.
- Secured distributed ledger or blockchain.
Utilizing NFTs benefits artists and other users by digital auctioning their artworks, music, and products to generate money. While the non-fungible token marketplace is globally expanding, marketers are seeing brands develop new strategies to interact with their customers and audiences. Beeple Artwork, Grimes, RTFKT Digital Sneakers, and Taco Bell are examples of brands that found success selling the tokens for profitability.
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