NFT: Brand’s Modern way of Marketing.

Authored by Abhishek Shetty | Club Executive Member

Brands are constantly seeking for innovative methods to sell themselves and differentiate themselves. The NFT is one such trend that businesses are capitalizing on. It's a tremendous monetization option for artists, given the rising consumer interest in NFTs. The ease with which they may market their work has skyrocketed. NFTs can generate brand value and brand love in numerous ways

So, what are NFT’s?

Non-fungible tokens are cryptographic tokens that represent a single digital asset. It functions similarly to bitcoin and is based on blockchain technology. An NFT can be anything digital, but art, music, video game items, trading cards, sports events, memes, virtual fashion, and other digital collectibles are common examples.

Brands NFT’s for marketing:

NIKE

Buying NFT to flex on people in metaverse and sneakers is one of them. One of the most popular brands, Nike has started using NFTs to confirm the authenticity of its shoes. To materialize its vision of selling virtual sneakers, the footwear and apparel giant has brought RTFKT (pronounced as artifact), a company that manufactures digital sneakers. RTFKT sells digital items as non-fungible tokens (NFTs). RTFKT, which was founded last year, sold approx. 600 pairs of physical sneakers for $3.1 million but these items were the NFT versions of the sneakers sold with each pair. When you buy Nike shoes, you will also get a digital version of the shoes in your digital locker. Although these shoes are not usable in the real world, you can put them on your characters in video games like Fortnite, giving you an unmatched pair that will look great on your characters.

NFTacobell

Taco bell sold Taco themed gifs and images as NFTs, where all the proceeds went to the Taco Bell Foundation. Taco Bell jumped aboard the NFT bandwagon, releasing five pieces of “limited” digital art on the blockchain. The art was sold on the Rarible marketplace, and according to The Verge, the 25 tokens it put up were sold within a half hour. The good news is that this wasn’t strictly a cash grab. According to Taco Bell’s listing on Rarible, 100% of the profits earned from this sale will be donated to Taco Bell Foundation, Inc. to empower youth to discover and pursue their career and educational pathways.

Coca Cola “Loot box”

As marketers continue to experiment with the convergence of cryptocurrencies and culture, Coca-Cola is leveraging its legacy of collectibles with a first NFT. The Atlanta-based beverage conglomerate is selling a set of four NFTs as a single asset, with revenues going to Special Olympics International. Coca-Cola collaborated with Tafi, a Utah-based business that creates avatars and other virtual content, to resuscitate a pixelated facsimile of Coke's legendary 1956 vending machine for its digital asset premiere. Instead of Coke cans, the "Friendship Box" is designed to resemble a "loot box" in video games.

we have an entire generation growing up, that is willing to spend more money on digital assets than physical ones. Although we see that NFTs are closely linked to the world of arts, sports and video games, we have seen how brands that have nothing to do with Taco Bell or Coca Cola have managed to enter this world, having incredible profits.