An Ultimate Guide To NFT Marketing

You must have heard the word NFT(Non-Fungible Tokens) when the entire globe was debating the new term meta verse, just after Mark Zuckerberg made this groundbreaking revelation.

Some said that it is going to be utilized as a virtual money for buying and selling in the meta verse, while others guessed and associated NFT with cryptocurrencies.

What exactly are NFTs? 

And, why should marketers care about it? Or is it just another buzzword?

What really is the truth? Who can say?

However, you should be aware that NFTs are also making inroads into the art and technological worlds.

Recently, Nyan CAT GIF was sold for $600000, for example.

To clear up all the doubts from your mind, here’s a blog about NFT marketing guide…

So, put your reading glasses on and let’s get started !! 

But, before we get started with NFT marketing guide, let’s first understand what NFT is.

What Is NFT Marketing?

To understand NFT marketing, you first need to understand what NFT is…

NFT stands for Non-Fungible Tokens, an intangible digital asset that can be bought and sold in the form of images, videos, gaming items, etc.

And these NFTs are going to come up with certificates to show the ownership of the respective owner by making it unique.

This ownership token is going to be kept in a digital record known as the blockchain.

I know it became little complicated for you to understand the concept but here’s an example:

Think about that for a minute…

Let’s say you have written a book. The book’s copyright would be yours.

Despite the fact that there are going to be millions of copies of your book available, the original one would be yours.

This is exactly where NFT can help you. As an ownership token, NFT would preserve a record of your book as it was originally owned by you. 

And, everyone would have to agree on which file is original as it would be transparent. 

While others can still have the copied version of your property while you would have an original and tokenized version.

But the thing that you need to keep in mind while understanding this example is, there would be no physical item but virtual items in NFT. 

Your purchase is instead recorded on a blockchain ledger.

How Is Web 3.0 Related To NFT?

To understand the relation between Web 3.0 and NFT, you must first understand what Web 3.0 is…

Well, Web 3.0 is going to be an upgraded version of the current internet system, web (2.0). 

And, within this upgraded version of internet, metaverse is going to be a new dimension that is going to include, “games, film, concerts, social platforms, education, and simulation-based training.”

It is going to be the third generation of the internet. 

It is seen as a new technological revolution since it is going to combine machine learning and big data to provide a personalized user experience.

According to recent estimates, the Metaverse Industry is Expected To Grow To $678.8 B By 2030.  

This internet revolution somewhat seems like the social media revolution in 2007.

Along with the existence of web3.0, users would still access the internet using a web browser, but it would be more user-friendly in terms of Web 2.0.

Apart from this, there would be a lot more changes in the applications we use on daily basis like, you can see in the image given below

Now, let’s look at the relationship between Web 3.0 and NFT.

It is quite similar relation like, Relation Between NFT, VR & Blockchain

The only relationship between web 3.0 and NFT is that NFT is not possible without metaverse.

How Are Other Brands Can Use NFT Marketing Strategy?

If you have even a little bit of an idea about current affairs, then you must have known that big brands started entering into the metaverse.

It seems that AR(Augmented reality) and VR(virtual reality) is new digital marketing

You know what, brands are building virtual stores and showrooms to allow their customers to take virtual tours, interact with space along with 3D versions of the products.

Users will be able to employ augmented reality for virtual try-ons of items like shades, cosmetics, and home furnishings.

You can take the example of famous clothing brand Timberland.

Check this out:

Timberland has created an in-store virtual try on experiences in which passers by could try on clothing from their newest virtual collection.

The physical screen camera follows the person’s movement and analyses it. When a person approached it, the app scanned their face, snapped a photo, and searched for a suitable model. 

The user might change clothing with gestures on the 80-inch screen. This experience also featured the ability to post their attire on Facebook via social media.
See the video below:

You can take Gucci as another example:

The Verge reports that the luxury brand released an exclusive digital pair of sneakers in March 2021 called The Gucci Virtual 25 that “can be ‘worn’ in augmented reality (AR) or used in partnered apps like Roblox and VRChat.”

And, in may 2021, Gucci opened the Gucci Garden on Roblox, a virtual experience to complement a real-world installation called the Gucci Garden Archetypes, which took place in Florence, Italy.

Source: forbes.com

These two are great examples of how creative brands can be in the digital world than in the actual world. 

Now, let’s learn about the impact of NFT on E-commerce.

NFT Marketing Examples

Do you know NFTs are actually taking up the whole world and plenty of big brands are already using this technology to drive their marketing strategies.

Let’s look at some NFT marketing examples of how marketers are employing NFT.

A) In-person Events By AMC Events

Did you see the recent poster of Spiderman NFT series issued by AMC studio?

Just see the poster.

Did you notice something?

Yes, SPIDER-MAN NFT for free.

And you know what when the movie went on sale, they provided complimentary NFTs to the first 86,000 AMC investors who purchased or reserved a ticket. 

But they issued a condition with it like, if the user has purchased the ticket but didn’t watch the movie, he would not be eligible to get a NFT.

This is how AMC cleverly used the NFT advertising tactics to generate more ticket sales.

If you operate a business, you may utilize NFT marketing strategies as used by AMC studio to create large sales.

And the examples don’t end here. There are also more examples in the row that showed the whole world the proper use of NFT.

B) Brand Awareness By Marriott

This is also a great example of NFT Marketing.

With the support of NFT, you may also focus on brand recognition as a business owner.

Let me explain how you would do that with the example of Marriott.

Marriott’s travel programme took advantage of NFTs. Three artists collaborated with the brand to come up with three different NFTs inspired by travel experiences. 

The NFTs were introduced at an event held at Art Basel, the world’s largest contemporary art fair. The NFTs were raffled off in a drawing. 

The winners received their own NFT as well as 200,000 Bonvoy points.

That’s how Marriott was able to conduct an event that served to raise brand awareness.

As a business owner, you may employ this innovative NFT marketing strategy.

C) Digital Store By Nike 

Nike was the first one to jump into the race of NFT advertising. 

Their CryptoKicks is a technology that connects actual sneakers to digital representations of the same. 

A digital locker can be used to exchange for or store digital shoes. But this is only the start.

The business came up with the notion of mating digital shoes.

This is an excellent marketing strategy for bolstering a brand’s position in today’s market while also generating income.

How Does NFT Work In E-commerce?

Now we’ll see how NFT would affect E-commerce and what services it will offer to the industry. 

As we already know that NFT represents the unique value of the product or asset on the blockchain.

And the thing is, NFT would also represent the other digital content such as, stories, blogs, art-piece and other intellectual property.  

In simple words, whoever has the NFT with the associated asset’s information encoded in its digital signature is considered the asset’s owner.

And believe me when I say this process is going to affect E-commerce.

Let me explain how,

Let’s say you purchase a digital asset that has been turned into a NFT, so you can claim the right to purchasing the digital asset and having the transaction signed into the NFT.

Also, the transaction would be digitally autographed by the asset creators.

But now the question here arises,”how does NFT branding work in E-commerce?”

So, in order to ease any doubts you may have about how NFT would operate in E-commerce, I’ve listed a few things that may assist you.

A) Ownership Documentation

NFT is the proof of ownership while other details such as copyright transfer may depend on the mutual agreement of the buyer and seller.

Ownership transfer can be taken as a primary phenomenon.

Mainly it is because the attributes of NFTs cannot be changed without any record. 

In simple words, the moment you created an NFT marketing strategy to the moment you transferred the ownership to the new owner, you can see a transparent record of the transaction for the NFTs life cycle.

Which simply means, you can clearly determine the current holder of the digital asset. 

This can also mean that NFT can also act as an undeniable proof of ownership. 

In E-commerce, this might persuade the individuals to purchase particular things by providing them with a permanent certificate of ownership.

This process is going to be helpful in purchasing of some antique goods, expensive watches, fine wines or other high value goods where certifying the ownership is important.

B) Proof Of Exclusivity

Another advantage of NFT is the evidence of exclusivity. NFT as a proof of exclusivity can be most helpful to those who own an NFT’s respective asset such as digital artwork and fashion accessories.

Considering this, NFT could be highly sought after digital proof of exclusivity of luxurious and unique products.

For example, let’s say you have an original painting of Mona Lisa and others might have a copy of the painting but the question is, what would make your painting exclusive?

I mean, how would you claim that you have an original painting?

This is where NFT would work in your favor. Your NFT is what makes your painting exclusive.

Your NFT is the proof of the exclusivity of your owned digital asset. 

C) Claim Of Virtual Property

As you already know that the market is not only filled with physical goods. From the software solutions to the artwork, the marketplace holds various virtual assets that are always ready to buy and sell between people.

Since NFT provides a way of assigning value to the virtual property, they can easily support the E-commerce sites in this way.

The E-commerce sites that want to sell distinct virtual property can create unique NFTs for them.

This mechanism can change the world of E-commerce websites. This especially holds value to the sites that either sell exclusive digital assets or which sell a mix of both virtual solutions and physical goods.

That’s how NFT can directly work with E-commerce by creating a way for virtual property to be sold along with the proof of ownership, exclusivity and transaction records traits of NFT.  

With the combination of all these 3 qualities together, NFT can become an excellent way to go with E-commerce hand-in-hand.

Some of the E-commerce websites that can be benefited with NFT are, Home decor, art, apparel, custom software, digital collectibles, and online auctions.

What May NFTs Contribute To E-Commerce?

Till now we have understood how marketers make use of NFT along with how NFT works in E-commerce.

With the continuous change in the whole marketing sector due to NFT, it would also contribute to the future of E-commerce.

Let’s understand how.

A) Zero Fraud: The concept of blockchain along with the creation of NFTs on the top of ethereum makes fraud and counterfeiting in E-Commerce almost impossible.

B) Trade Barrier Removal: NFT enables the digital asset exchange without regard for constraints, rules, or politics. 

C) Divisibility: Producers and artists may sell their work faster with fractional ownership of assets that are too pricey for the common customer.

Conclusion 

What we have just seen is just the beginning of the trend. According to Jackofalltechs, NFT sales increased 464% in 3 months from the end of June to the end of October 2021. 

Yes you read that right.

But believe me you are still not too late.

This ultimate guide would help you a lot with NFT marketing as it covers all the topics relevant to it. 

So, go through this guide for a better understanding of NFT marketing along with how it is going to affect E-commerce in future.

For more marketing tips and services, you can schedule a free-of-cost 30-Minute Strategy session with our experts. In this call, our experts would discuss your business and provide you with the free strategies that you can use to boost your sales and revenue. 

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Many people are claiming that NFT is going to be utilized as a cryptocurrency while many others guessed it as currency used for buying and selling in the metaverse marketplace. 

But, who can say? What really is the truth?

Still, you should be aware that sooner or later NFT is going to affect the marketing and especially the digital marketing for sure.

And, as a marketer you should care about the NFT marketing.

So, here in this blog, you will get a deep analysis about NFT marketing and how it is going to affect E-commerce.

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Many people claim that NFT will be utilized as cryptocurrency while others guessed it as currency that is used for buying and selling in the metaverse marketplace.

Here’s the blog about a complete guide to NFT marketing.

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FAQs

1. What are the benefits of NFT for marketers?

One of the biggest benefit for NFT marketing is, it is quite new this time so, it doesn’t have much competition. You can grab and get opportunity from NFT very easily.

2. Can NFTs be used for marketing?

Of course, yes. NFTs can be used for marketing. Infact, many brands are using it for marketing like, Nike, marriott and many more other brands.

3. What are some examples of successful NFT marketing campaigns?

One of the best example for successful NFT marketing campaign is, CryptoKitties,it generated over $25 million in sales.

4. How much NFT marketing cost?

NFT marketing can cost you from $10,000 to over $200,000 for a successful NFT marketing campaign.

5. Do you need to market your NFT?

Because NFT collections are announced frequently, it is crucial to advertise your collection. The most popular NFT collections actively promote themselves and provide future road plans.