As the popularity of NFTs continues to grow, brands would be wise to start paying attention. Here are 3 ways they could benefit your marketing strategy.

3 Ways NFTs Could Benefit Your Brand’s Marketing Strategy

3 Reasons Brands Should Be Aware of NFTs for Marketing Strategy

<p>The NFT, which stands for “non-fungible token,” isn’t new. NFTs have been around since 2014 but only gained popularity in recent years, with people <a href="https://www.forbes.com/advisor/investing/nft-non-fungible-token/">spending</a> more than $174 million on NFTs between 2017 and 2022.</p>
<h2>What is an NFT?</h2>
<p dir="ltr">NFTs are <a href="https://www.sciencedirect.com/science/article/abs/pii/S0007681321002202#:~:text=A%20non-fungible%20token%20or,et%20al.%2C%202021).&amp;text=This%20is%20where%20NFTs%20come%20in.">digital assets</a> using Ethereum blockchain technology that serve as records of ownership of digital items, like videos and tweets, or tangible items, like tickets and pieces of art. Generally, when you buy an NFT, it comes with basic usage rights, such as permission to post it online. Each NFT is a <a href="https://www.theverge.com/22310188/nft-explainer-what-is-blockchain-crypto-art-faq">unique</a> token on the blockchain and can be bought and sold on various marketplaces like OpenSea and Rarible, and purchased with whatever currency the seller asks for.</p>
<p dir="ltr">Even major brands started to experiment with NFTs in recent years. Here are 3 reasons brands should be aware of NFTs when it comes to <a href="https://union.co/services/data-brand-strategy/brand-strategy">marketing strategy</a>.<br /></p>

<h2>(1) NFTs could help brands reach new consumers in the gaming realm</h2>
<p dir="ltr">This could be useful for brands that don’t currently participate in the gaming space. Burberry <a href="https://www.burberryplc.com/en/news/brand/2021/Blankos.html">jumped</a> into the NFT space in 2021 when they partnered with Mythical Games to launch an NFT collection for the game Blankos Block Party. </p>
<p dir="ltr">This multiplayer party game features digital vinyl toys on a blockchain, so Burberry created an NFT shark toy that can be bought, updated and sold in the Blankos Block Party marketplace. Burberry also planned to create in-game NFT accessories to apply to the toys, like a jetpack and pool shoes to promote brand awareness throughout the game. <br /></p>

<h2>(2) NFTs can help boost brand engagement</h2>
<p dir="ltr">Various brands have released NFT collectibles so fans can get ownership of unique digital assets that represent their favorite brands. Pepsi <a href="https://www.prnewswire.com/news-releases/pepsi-announces-first-ever-brand-nft-with-pepsi-mic-drop-collection-301440901.html">released</a> their first brand NFT in 2021 with the Pepsi Mic Drop, a limited collection of 1,893 NFTs. They were free for users to access and mint, beyond gas fees required for the energy needed to generate the NFTs. The NFTs featured microphone visuals to celebrate the brand’s historical tie to music. </p>
<p dir="ltr">In terms of engagement, the Pepsi Mic Drop NFTs on the OpenSea marketplace <a href="https://opensea.io/collection/pepsi-mic-drop">show</a> that 1,200 people own the NFTs, while 2,800 have been traded.</p>

<h2>(3) NFTs offer brands a way to create and sell new items</h2>
<p>Other brands have released NFTs for purchase, so people can experience versions of their real-world products in a virtual environment. Last year, Nike <a href="https://www.theverge.com/22833369/nike-rtfkt-nft-sneaker-shoe-metaverse-company">acquired</a> virtual shoe company RTFKT Studios to more deeply engage with consumers who enjoy collecting sneakers. RTFKT is known for collaborating with artists to sell real sneakers paired with virtual sneakers to collectors.</p>

<h2>NFTs are still on the rise</h2>
<p dir="ltr">For now, we recommend brands keep an eye on the NFT space, especially across art, sports, collectibles and moments-style categories. The space continues to grow – sales volume hit <a href="https://www.reuters.com/markets/europe/nft-sales-hit-25-billion-2021-growth-shows-signs-slowing-2022-01-10/#:~:text=NFT%20sales%20volume%20totalled%20%2424.9,record%20who%20owns%20the%20NFT.">$24.9 billion</a> in 2021, compared to $94.9 million in 2020.</p>
<p dir="ltr">Still only <a href="https://news.yahoo.com/only-20-of-americans-familiar-with-nf-ts-4-million-have-used-survey-165016231.html">20%</a> of Americans are familiar with the NFT industry. It’s tricky for brands to invest in a form of creative that many customers wouldn’t understand or connect with. NFTs also may not be sustainable in the longterm, since a lot of energy is needed for creation, selling and storage through the Ethereum blockchain. </p>
<p><br />Interested in talking more about the possibility of using NFTs as promotional marketing tools? <a href="https://union.co/contact">Contact us</a> today.</p>

<p>Union is a creative &amp; performance marketing agency that creates omni-channel campaigns, unleashing creativity on a data-driven world, helping brands produce memorable, measurable and repeatable results. Obsessed with data-driven performance, we believe every marketing dollar should be viewed as an investment. Our clients expect a meaningful return and we prove the ROI of our work with quantifiable data. </p>