How Brands Are Using NFTs
Everywhere you look these days you see something about NFTs. On the news, on TikTok, and with greater frequency, in marketing. There is still a lot of debate about the longevity of NFTs as a viable financial asset, however, marketers have found ways to turn the buzz about them into impactful marketing collateral.
What Is An NFT?
NFTs, or non fungible tokens, are digital assets recorded on a blockchain that are associated with a specific digital or physical asset. Many people think of NFTs as primarily digital assets such as imagery, audio, or even tweets, but they can also be used as a certificate of ownership for a physical item. There is however, a caveat to what the ownership of an NFT provides - as of now NFTs do not provide inherent legal rights, including copyright and intellectual property protection. It is also important to note that while NFTs operate on the blockchain, they are not a cryptocurrency, as they can not be exchanged for one another or traded for equivalency.
How Do You Create A NFT?
Part of the appeal of NFTs is that they can be created with limited or no coding knowledge; however, there are several steps beyond creating a digital file that users must complete to mint their NFT.
The steps for creating a NFT are as follows:
Choose the blockchain to store the NFT (Ethereum is the most popular)
Setting up a crypto wallet
Select a NFT platform (marketplace)
Connect wallet to the chosen platform and follow the prompts to mint the NFT
Creating 3D NFTs
NFTs may be minted from a wide variety of file types, including 3D models. As conversations around NFTs and the metaverse continue to expand, 3D models have become a key area of interest. Gaming assets in particular are quickly gaining popularity as minted NFTs, but as brands across verticals dive into more immersive experiences, including the metaverse, a wider selection of product categories will emerge.
Using NFTs for Marketing
Some of the biggest stories around NFTs have come from the arts; in fact a large percentage of the population had never heard of an NFT until digital artist, Beeple, made headlines selling his “Everydays” NFT for $69 million in 2021. But as awareness and interest in NFTs has skyrocketed, brands have taken notice of the opportunity.
Applications of NFTs as marketing tools have ranged from delivering a personalized experience, to increasing cart value through the opportunity to purchase digital versions of collectible products. Loyalty programs have also benefited as customer communities have been built around the ownership of a branded NFT. Similar to a fan club or a Patreon membership, those with NFTs may be granted access to special events, discounts, and content.
Brands interested in creating NFTs should be mindful of deriving value from their assets, as opposed to allocating resources to their creation just because they are the cool thing to do. Marketers must identify a strategic use for the NFT, whether that be as a manner of increasing average order value, driving loyalty engagement, or as a measurable brand building endeavor.
Image Credit: Norwegian Cruise Lines
Norwegian Cruises leveraged NFTs to celebrate the anticipated launch of their new Prima Class ships starting in summer 2022. Pieces featuring renderings of the new ships were auctioned off, with proceeds supporting Teach for America and buyers receiving a balcony cabin on one of the Prima’s U.S. inaugural voyages. This campaign not only drove significant media attention for Norwegian, but encouraged cruise enthusiasts to purchase early to be among the first to set sail on the new ships. In addition to the media buzz, these unique pieces gave Norwegian a unique medium to showcase the features of the ship, as well as to announce plans for future cruisers to purchase NFTs that connect them to their journeys with Norwegian.
Norwegian’s deployment of NFTs demonstrated a value-added application that was well aligned with the brand’s overall aesthetic and reputation.
Brands Using NFTs
Should I Create NFTs for My Products?
NFTs have the potential to deliver significant value to brands, if they are used in a manner that aligns with the current business goals. To determine if creating an NFT is a strong strategy for you, consider how it ties into your larger marketing strategy and what you hope to achieve with NFTs.
Ready to learn more about bringing your products to life online through 3D? Get in touch with one of our experts today and see how Dopple is creating digital twins that leave a lasting impression.