NFT: What Is It and How Does It
Affect Industries and Brand
Marketing.
Affect Industries and Brand
Marketing.
How does this new mechanism work?
NFT: What Is It and How Does It
Affect Industries and Brand
Marketing.
Affect Industries and Brand
Marketing.
How does this new mechanism work?
Hello dear readers and newcomers! As you may know my professional interest always keeps me busy. The NFT is one of the digital world headlines and it has a large number of fans and detractors.
Today I'm going to tell you about the way the NFT works. Just like a bartender selects the technique to make a new cocktail, so the digital certificate selects the progress mechanism for each industry.
Today I'm going to tell you about the way the NFT works. Just like a bartender selects the technique to make a new cocktail, so the digital certificate selects the progress mechanism for each industry.
source: https://unsplash.com/
WHY IS THE NFT SO POPULAR?
I have long noticed the rapid growth of the NFT and the way it is already changing the marketing. According to Chainalysis Inc. the NFT market was worth of $41 billion in 2021.
The NFTs represent real-world items, such as artwork and clothing, as well as digital items like music, videos and images. It is a digital asset with a unique signature. When someone buys an NFT, they obtain a blockchain-traceable certificate of ownership, which they then keep or sell to a new buyer. The blockchain analyses and tracks activity among all NFT buyers and sellers. The NFT cannot be directly replaced by another NFT, as its price is affected by the market supply and demand – thus it may be more expensive, cheaper or not attractive at all.
Cambridge Dictionary defines the NFT as an abbreviation for a non-fungible token: a unique unit of data. The only one existing of its type. It links to a particular piece of digital art, music, video, etc., that can be bought and sold.
Unlike cryptocurrencies, where each token is equal, non-fungible tokens are unique and limited in quantity. Tokens are not cryptocurrency (like bitcoin), but a record submitted in a blockchain.
For example, Twitter co-founder Jack Dorsey immortalised his first tweet in blockchain as an NFT and sold it for $2.9 million.
On 21 March 2006, Dorsey posted: - «Just setting up my twttr»
I have long noticed the rapid growth of the NFT and the way it is already changing the marketing. According to Chainalysis Inc. the NFT market was worth of $41 billion in 2021.
The NFTs represent real-world items, such as artwork and clothing, as well as digital items like music, videos and images. It is a digital asset with a unique signature. When someone buys an NFT, they obtain a blockchain-traceable certificate of ownership, which they then keep or sell to a new buyer. The blockchain analyses and tracks activity among all NFT buyers and sellers. The NFT cannot be directly replaced by another NFT, as its price is affected by the market supply and demand – thus it may be more expensive, cheaper or not attractive at all.
Cambridge Dictionary defines the NFT as an abbreviation for a non-fungible token: a unique unit of data. The only one existing of its type. It links to a particular piece of digital art, music, video, etc., that can be bought and sold.
Unlike cryptocurrencies, where each token is equal, non-fungible tokens are unique and limited in quantity. Tokens are not cryptocurrency (like bitcoin), but a record submitted in a blockchain.
For example, Twitter co-founder Jack Dorsey immortalised his first tweet in blockchain as an NFT and sold it for $2.9 million.
On 21 March 2006, Dorsey posted: - «Just setting up my twttr»
source: https://unsplash.com/
Blockchain is a system used to make a digital record of all the occasions a cryptocurrency (a digital currency such as bitcoin) is bought or sold. There are certain requirements for adding data – once it has been saved, it is almost impossible to somehow modify or remove it. Notably, there is no centralised organisation that verifies this process. Data is added over time in structures called blocks. Each block is layered on the previous one and includes data linked to the latter.
source: https://unsplash.com/
IDEA
The NFT is unique as a digital asset and can be of significant value – just like an expensive painting, luxury car or premium wine. It becomes a collection item that can then be resold. Some collectors consider this value more appreciated than the value of the object itself.
Below you can find some examples of the way several sectors use the NFT:
The NFT is unique as a digital asset and can be of significant value – just like an expensive painting, luxury car or premium wine. It becomes a collection item that can then be resold. Some collectors consider this value more appreciated than the value of the object itself.
Below you can find some examples of the way several sectors use the NFT:
Art industry
The NFT contributes to protection of the artists' rights and getting them a share of the sales once their NFT work has been sold.
Bored Ape Yacht Club (BAYC), a collection of 10,000 unique ape NFTs, was launched in April 2021 and quickly sold out. By buying a BAYC token, one becomes a member of the private club and gets exclusive benefits.
source: https://unsplash.com/
source: https://opensea.io
Ethereum price history over 5 years, 2018 – 2022:
source: https://www.rbc.ru
Sport industry
Art is not the only way to make money with the NFT. The NFT is a lucrative opportunity for the sport industry to offer sport fans to engage with their favourite teams and athletes. For example, fans can collect their favourite game highlights.
Remember when some kids used to love to collect sport cards with hockey players and a brand hologram?
Paris Saint-Germain, the French football club, is selling $220,000 worth VIP blockchain-based NFT tickets for friendly matches with teams in Japan that will take place in the summer of 2022, along with Commemorative Digital Merchandise.
Art is not the only way to make money with the NFT. The NFT is a lucrative opportunity for the sport industry to offer sport fans to engage with their favourite teams and athletes. For example, fans can collect their favourite game highlights.
Remember when some kids used to love to collect sport cards with hockey players and a brand hologram?
Paris Saint-Germain, the French football club, is selling $220,000 worth VIP blockchain-based NFT tickets for friendly matches with teams in Japan that will take place in the summer of 2022, along with Commemorative Digital Merchandise.
source: https://cryptoshrypto.com
Game industry
Regarding games, the NFT offers gamers to convert their in-game earnings into cash. If you're a gamer with a passion for investing, it is a perfect way to combine your two interests.
Axie Infinity is one of the best NFT games with 2.8 million active players per day based on the “play to earn” or “P2E” model. Users can breed their Axie creatures, trade them, create teams and battle other players. Each Axie is a unique Non-Fungible Token.
source: substackcdn.com
Fashion indusrty
In the fashion industry, digital items take on properties relegated to physical goods. In particular, scarcity and unique ownership.
The Fabricant, a digital fashion house that creates digital-only clothing, has entered the cryptocurrency world in collaboration with Dapper Labs, a blockchain company.
The company sold a shimmering NFT “Iridescence” dress for $9,500 in 2019. You can only wear it in photos and videos. The garment adapts to all body shapes.
In the fashion industry, digital items take on properties relegated to physical goods. In particular, scarcity and unique ownership.
The Fabricant, a digital fashion house that creates digital-only clothing, has entered the cryptocurrency world in collaboration with Dapper Labs, a blockchain company.
The company sold a shimmering NFT “Iridescence” dress for $9,500 in 2019. You can only wear it in photos and videos. The garment adapts to all body shapes.
source: https://www.forbes.com
Facts you need to know about the NFT:
- The first known NFT named “Quantum” was created and launched in May 2014 by Kevin McCoy and Anil Dash in New York. They were the first to conceive of placing unique digital artworks on the blockchain. At the time, they called the concept “monetised graphics”.
source: https://news.artnet.com
- The most-expensive-NFT-ever worths $69.3 million Christie's house auction sold an NFT called “Everydays: The First 5000 Days” work by artist Mike Winkelmann, aka Beeple. It is a collage of 5,000 images, which were made one-per-day from 2007. It is represented as an NFT – unlike the rest of Beeple's artwork, this one is digital only.
source: https://news.artnet.com
HOW BRANDS ARE USING THE NFT FOR MARKETING
The NFT has great opportunities and are increasingly becoming a major player in the marketing strategy.
The assets include virtual reality and virtual real estate, audio and video files, digital art, digital goods, fashion products, etc. Their versatility allows brands to present innovative types of content and new ways of engaging with consumers. Especially with the tech-savvy Gen Z and millennials.
The assets include virtual reality and virtual real estate, audio and video files, digital art, digital goods, fashion products, etc. Their versatility allows brands to present innovative types of content and new ways of engaging with consumers. Especially with the tech-savvy Gen Z and millennials.
«The use cases for NFTs are limitless. Tokens allow beauty brands to create, nurture, and activate a community and can serve as a loyalty mechanism, inviting access through real-world or virtual experiences, exclusive merchandise drops, and product co-creation.»
Dina Fierro
vice president of global digital strategy and social engagement at Nars Cosmetics
«The use cases for NFTs are limitless. Tokens allow beauty brands to create, nurture, and activate a community and can serve as a loyalty mechanism, inviting access through real-world or virtual experiences, exclusive merchandise drops, and product co-creation.»
Dina Fierro
vice president of global digital strategy and social engagement at Nars Cosmetics.
On 31 July 2021, the National Orgasm Day, the French company NARS Cosmetics launched the NFTs inspired by its famous “Orgasm” product line. The brand chose Orgasm as the theme for its first NFTs collection, which takes the form of digital artworks. Three artists worked on the project to reinterpret the brand's iconic, peachy-pink blush shade.
The NFTs could be found on Truesy in different quantities and at different fixed prices.
The NFTs could be found on Truesy in different quantities and at different fixed prices.
- NFT by collage and crystal artist Sarah Shakeel – $0
- NFT by fashion designer Azede Jean-Pierre – $50 + limited-edition products from the Orgasm line
- NFT by DJ-music producer Nina Kraviz – $500 + limited-edition products from the Orgasm line
source: https://www.techtimes.com
Budweiser launched its first NFT collection called “The Heritage Collection” in November 2021. It was composed of 1,936 unique digital beer can designs, representing 1936, the year the first Budweiser can was created.
Each NFT item was exceptional and it was created using archive photos, ads and designs found throughout Budweiser's history. It represents an entry key to the Budverse and unlocks exclusive content for all adult (21+) NFT holders. The collection was sold out less than one hour after it went on sale.
Each NFT item was exceptional and it was created using archive photos, ads and designs found throughout Budweiser's history. It represents an entry key to the Budverse and unlocks exclusive content for all adult (21+) NFT holders. The collection was sold out less than one hour after it went on sale.
source: https://opensea.io
NFTs can also function as membership cards or tickets, providing access to events, exclusive merchandise and special discounts, as well as serve as digital keys to online spaces where holders can interact with each other. Moreover, since the blockchain is public, it is even possible to send additional products directly to anyone who owns a given token. All this gives the NFT holders value above simple ownership – it also gives creators a vector for building a highly engaged community around their brands.
The NFT and blockchain technologies used for ticketing allow brands and consumers benefit from security against counterfeiting. The blockchain generates a unique code on the ticket, which is easily verified by event organisers and can even be created as a non-transferable and locked code for resale.
Another NFT strategy is to create a digital collectible tied to your physical item, which can be used for video game characters or online forums.
NFT's key benefits for the brand:
The NFT and blockchain technologies used for ticketing allow brands and consumers benefit from security against counterfeiting. The blockchain generates a unique code on the ticket, which is easily verified by event organisers and can even be created as a non-transferable and locked code for resale.
Another NFT strategy is to create a digital collectible tied to your physical item, which can be used for video game characters or online forums.
NFT's key benefits for the brand:
- Creating uniqueness in the market
- Increasing brand awareness
- Attracting interest in the brand and products
- Creating new brand experience
- Building new ways of engaging with consumers
- Boosting interaction and conversions
- Increasing revenue
- Opportunity to give personalised gifts and discounts
Will the NFT float and become part of the marketing of the future or will it pop just like a bubble? I believe this remains to be seen. As it is, brands are currently experimenting with marketing and getting on the NFT-trend. Some are cautiously using it for charity events, while others are offering access to exclusive content.
See you next month in a new post!
And then, do not forget to subscribe to my Telegram channel, in order not to miss the latest article in the month to come.
See you next month in a new post!
And then, do not forget to subscribe to my Telegram channel, in order not to miss the latest article in the month to come.
Will the NFT float and become part of the marketing of the future or will it pop just like a bubble? I believe this remains to be seen. As it is, brands are currently experimenting with marketing and getting on the NFT-trend. Some are cautiously using it for charity events, while others are offering access to exclusive content.
See you next month in a new post!
And then, do not forget to subscribe to my Telegram channel, in order not to miss the latest article in the month to come.
See you next month in a new post!
And then, do not forget to subscribe to my Telegram channel, in order not to miss the latest article in the month to come.
Hello, my friends!
The launch of this blog was inspired by my professional love for brands, innovative solutions that harmoniously combine brand, audience, content and creativity altogether.
Together we will find out about trends in marketing communications.
As a professional I have already helped hundreds of local and international brands working with content and implementing their communication strategy in different media.
Best wishes,
Julia
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