Consumers had fewer opportunities to visit brick-and-mortar stores as a result of the epidemic, and many corporate brands of food, clothing, housing, transportation, and entertainment saw their profits fall. This led brands to invest in Web3. FMCG brands from Coca-Cola, Nike, Estée Lauder to luxury brands such as Gucci and Prada have all issued NFTs and marketed NFTs using 3.0. If you are looking for new business opportunities, have you noticed that the trend of NFT, metaverse and Web3 is taking shape? C-Cubed thinks NFT will be the best marketing tool for your brand, so let's take you through the eight branding features of NFT right away!
NFT Marketing Features 1: Limited quantity of production and rarity
The emergence of NFT has reversed the trend of mass producing computers, where "digital" and "limited" are typically concepts that are mutually exclusive. Non-Fungible Token (NFT) is indivisible, irreproducible, unforgeable and issued transparently on the blockchain. Each NFT is unique, making it particularly suitable for minting items in limited quantities.
Brands can increase the value of NFT projects by controlling the number of issuances through code, complemented by content (utility and appearance) design. The content design of current branded NFT projects can be broadly divided into 3 main categories:
1. Unique and no duplication: Each issued NFT is unique and has no duplication, e.g. Beeple's Everydays. The first 5000 days;" "Spider-Man: No Way Home" movie NFT launched by AMC and Sony.
2. With rarity differences: the NFT content issued contains rarity differences. For example, although each NFT of Bored Ape Yacht Club is different, some NFT ape features are rarer and have higher value. Some brands also distinguish rarity by dividing NFT into several grades, such as gold, silver, bronze, and so on.
3. Special qualification acquisition: All the contents are the same, but only limited to the special period and special qualification acquisition. For example, Estée Lauder's classic "Advanced Night Repair" NFT is limited to 10,000 copies and can only be obtained during the fashion week of the metaverse' Decentraland platform.
In addition to content designed to create rarity, branded projects can maintain their rarity through a special Burn mechanism that allows for the destruction of NFTs that are not purchased after the open bidding process.
NFT marketing case: BAYC that has been popular for a long time uses the characteristics, expressions, clothing, and accessories of apes to create the rarity of NFT; players can also use potions to mutate apes to make them rarer. (Photo credit: Bored Ape Yacht Club)
NFT Marketing Function 2: White List
White List refers to a list of people who have priority access to NFT through smart contracting, similar to pre-purchase eligibility, and who can obtain NFT at a cheaper casting cost as soon as the NFT project opens. White list can be an existing member of the brand, or the brand can set conditions for obtaining the white list, such as becoming a member of the brand's official website, sharing and reposting brand articles, etc. Many brands will also whitelist people who have NFTs issued previously and KOLs who are active users of social media, giving them priority access to new NFTs. The mechanism of white list distribution not only allows brands to give benefits to loyal customers, but also helps brands to reach new users.
Many brands will make the terms of their whitelist public on Twitter to generate a wave of interest before the NFT is officially made public. (Image credit: Twitter)
NFT Marketing Function 3: Utility
Since NFT is a unique digital proof that lasts forever with time, the connotation of NFT is often designed to evolve with time. Utility refers to the brand's description in the roadmap of what digital/physical benefits will be released to NFT holders over time. For instance, the value of NFT is continuously extended rather than a one-time consumption when access to digital Avatar, tickets to events, discounts on merchandise, and redemption of physical goods are available.
Many brands issue NFTs that can be exchanged for digital or physical goods, but for collectors, true brand enthusiasts, collecting NFTs can be quite satisfying even though many NFTs do not exist in a 1:1 physical form.
NFT Branding Case: Alpacadabraz Alpaca's utility not only allows users to use the alpaca character on virtual platforms but also serves as a pass to style clubs, with 2 free tickets a year to an NBA game, a Champions League game or a concert. (Image credit: Alpacadabraz)
NFT Marketing Function 4: Airdrop
Airdrop refers to the occasional distribution of NFT or virtual currency to NFT holders by project parties bearing the NFT brand. The airdrop may be a new NFT utility or a new NFT that can be integrated with an existing NFT. Through airdrop, on the one hand, the open and transparent distribution mechanism can convince customers, and on the other hand, the brand can give customers the prestigious feeling of having something "exclusive to them." NFT distribution and airdrops are often in the form of a Mystery Box, giving users a sense of surprise as if they are drawing lots, adding to social media conversation and providing the best social media marketing opportunity for brands.
NFT Branding Case: No one knew what was in Nike's airdrop Mystery Box, MNLTH, for users before it was opened. It was a novel experience for users that they have not had for a long time. (Image credit: Nike)
NFT Marketing Function 5: Timeless Transaction History and Receiving Percentages of Sales
Because NFT is built on a transparent blockchain where every transaction and customer data are recorded and the profit sharing mechanism is established by program codes, brands can receive a percentage of every NFT sale and resale. Never before has it been possible to run a marketing campaign and make a profit at the same time, but NFT is revolutionizing the way corporate brands think about marketing.
On the other hand, a permanent record of every NFT transaction in wallets and addresses will be stored on the blockchain, providing brands with a treasure trove of customer data to analyze and mine. Join C-Cubed in the metaverse now and let your brand be the first to understand the customer behavior of the new generation of consumers.
Never before has it been possible to run a marketing campaign and make a profit at the same time, but NFT is revolutionizing the way corporate brands think about marketing. (Image credit: freepik)freepik）
NFT Marketing Function 6: Building the Metaverse Brand Image
Cross-industry co-branding has always been a common marketing tool for brands to create new and interesting products and attract customers from different brands. However, co-branding does not always result in increased sales. Too many and too complicated co-branding will not only tarnish the product's reputation, but will also give consumers the impression that the product is of inferior quality.
Many brands have chosen to co-release NFT products with native brands in the metaverse, such as Nike and RTFKT co-branding with Takashi Murakami to release the CloneX virtual sneaker NFT, which can be exchanged for physical sneakers, and sportswear brand Champion collaborating with virtual character company, TaFi, to use NFT to release their new Spring 2021 clothing collection.
"Brands that prioritize NFT also incorporate the "high-tech," "futuristic," and "trendy" metaverse pioneer brand values into the brand, which aids in attracting new users.”
Brands that place a high priority on NFT also incorporate "high-tech," "futuristic," and "trendy" metaverse pioneer brand values into their identity, which not only help them reach new audiences and market encryption currency consumer groups, but also break the original price of their products' established list prices and reshapes their brand value. For instance, a pair of the NIKE CloneX MNLTH sneakers can sell for about 1 million NTD, not including the royalty income.
NFT Branding Case: NIKE Clone X MNLTH virtual sneaker set a record for the most expensive virtual sneakers.
By using NFT to create virtual products in the metaverse, brands not only extend their existing brand beliefs to the metaverse and communicate with customers, but also use it as a platform to test the waters for new products, without actually producing physical goods. The 3.0 market response can be understood at a relatively low cost.
Sportswear brand Champion has teamed up with virtual character company Tafi to bring Champion apparel into the metaverse. (Image credit: Tafi)
NFT Marketing Function 7: Web3 Brands' Social Media
Because of how the pandemic affected the world, only a small number of people were able to attend offline marketing PR events, which resulted in a sharp decline in consumer engagement. The new type of community is created by NFT holders, and participants can come from all over the world. Although remote, NFT holders are closer to the brand, more engaged, and in contact with the brand for longer than ever before, and the brand receives continuous exposure for free.
Although Web3 is still in its very early stages, a Web3 social media culture has quietly taken shape with a focus on authenticity and a desire to interact directly with brands. Currently, brands selling NFTs usually use ad-free Discord to build a community and occasionally hold AMAs (Ask Me Anything) or sweepstakes to engage with core users. Brands can get first-hand feedback from the community, and NFT users can spontaneously engage with brands and become brand ambassadors without realizing it.
Discord is a favorite among the Web3 brand social media because it lacks adverts, has numerous channels, and has robust robotics. (Image credit: Discord)
Due to the requirement that brands interact directly with customers, Web3 brand social media present both new opportunities and challenges for brands. Brands must react swiftly to social media feedback and broaden their tolerance for critical voices while upholding their core principles. Customers must be treated as if they "own" the brand. It differs significantly from managing Web2 social media, which is very challenging for brands. NFT marketing team, C-Cubed, has been working in Web3 social media for many years and has practical experience in community management. Contact C-Cubed now for professional NFT social media marketing management services.
"In the metaverse, brands communicate not only with their customers, but also with the Avatars that they have.”
NFT Marketing Function 8: GameFi Virtual Opportunity
It has been a trend in recent years for brands to adopt the direct-to-customer (DTC) sales model and build their own online sales channels. The DTC model eliminates intermediate supplier costs, reduces inventory costs by manufacturing on demand, and regains price control, resulting in a significant increase in brand profits. In addition to the existing DTC regarding brand marketing, the business opportunity of DTA (Direct to Avatar) is emerging as a result of the growth of NFTs.
In real life, each person has a single body, but online, each person can have a variety of Avatars to represent different identities. From the single-player games of the Web1 era to the success of real-time combat games in the Web2 era, to the Web3 era, when people will be more deeply engaged in the metaverse through VR/AR and block chain network, people will start to have the demand for dressing/equipping the skin and avatars, and wearable-NFT will have enormous business opportunities.
Dencetraland Metaverse Virtual Fashion Week has become a new marketing battleground for major brands. (Image credit: Decentraland)
In the metaverse, brands communicate not only with their customers but also with the avatars they own. The luxury brand Louis Vuitton even directly launched the video game "LOUIS: THE GAME" to test the waters in an effort to take advantage of the virtual business opportunity, giving users the chance to play the game and win NFTs. Contact C-Cubed right away to find out more about GameFi's online business opportunities.
We are a Web3 brand marketing team, of which the executive team comes from Web3 social media, including Alpacadabraz and PHANTABEAR, among others. We offer one-stop, custom-tailored metaverse marketing services, from Web3 social media management to Web3 business models, including integrated marketing strategies, engineering services, and Web3 business models.
Interested in NFT brand marketing or metaverse business opportunities? Please don't hesitate to get in touch with us right away.