Non-fungible tokens (NFTs) have been shaking up the marketing world of late. Brands are embracing this new generation of assets in wholly unique and memorable ways.
What are NFTs?
NFTs are digital assets that cannot be duplicated but can be copied. Think of it as a great work of art—only one person or entity is the owner of the original, but individuals can purchase prints. NFTs spun off from crypto payments (such as Bitcoin), which are decentralized encrypted payment systems.
How Brands are Employing NFTs
Iconic brands have begun using NFTs in their marketing strategies, as well. Some have created exclusive NFTs to support charities. In fact, Taco Bell’s 25 NFT GIFs sold out on the NFT marketplace Rarible within 30 minutes, with proceeds going to the Live Mas Scholarship through the Taco Bell Foundation.
Other companies are hopping on the NFT “brand-wagon” by building a loyalty program around NFTs, offering special privileges or perks for owners of collections. For example, owners of Bored Ape Yacht Club NFTs get access to meet-ups or parties non-token holders can’t attend. And the makeup brand Clinique held a competition for members of its Smart Rewards program. Three winners were awarded a limited-edition NFT and an assortment of Clinique products once a year for a decade.
NFTs also can be used as limited-edition special event tickets, such as with the National Football League’s promotion for Super Bowl LVI. Or they can offer special event access or future promotion opportunities to NFT ticket holders. Coachella offered a select number of NFT tickets which granted lifetime access to the event. Other Coachella-created NFTs could be exchanged for physical photo prints or books.
What NFTs offer is what this generation of consumers is looking for: Authenticity. Owning an NFT, in whatever form it takes, means you own something that cannot be duplicated—or faked.