NFTs are digitally objects that have a unique “fingerprint” through the blockchain. Most NFTs are based on the Ethereum-system. Blockchain technology like Ethereum guarantee that NFTs can’t be exchanged or copied. Big brands with desirable products, like L’Oreal, Nike, Gucci or Louis Vuitton already offer their fans and followers products and collectibles as NFT.
And it is not only GenZ that can get excited about buying digital objects. Die-hard collectors do, too. The US National Basketball Assosciation (NBA) sells officially licensed Video-NFTs with a massive success. Until march of 2021 NBA TopShot generated over $230 million in gross sales. This example impressively proves that there is already an active market for desirable objects and products as NFTs. Brands can use this trend for publicity, sales, charity and several other reasons.
Let’s have a closer look, why most of them already do.
If you have kids, you probably noticed how keen they are with creating their avatars for online games or other online activities. Buying virtual objects like skins for Ego-Shooter weapons or clothes for Avatars have long been common practice in the gaming scene. These buying personas will increase in the next decade.
A look at the teenage generation shows that a group of buyers is growing up for whom buying digital objects has long been part of everyday life. It is therefore to be expected that the market for NFTs will continue to grow in the near future.
NFTs are becoming something like the gold standard of the expected metaverse. Because where real objects count for nothing, the display of one's own individuality takes place via digital and, above all, unique objects.
The reason why brands are getting involved here is clear: the earlier their own NFTs are on the market, the sooner they can also make a name for themselves in this new product world and - more importantly - gain knowledge about technology, marketing and successful sales of NFTs.
The range of objects and products that can be distributed as NFTs is wide. It ranges from static text and visuals to videos and 3D objects. However, the technology behind it remains largely the same.
After the digital asset has been created or an asset that already exists in analog form has been converted to digital form, you select a suitable NFT marketplace where your digital object will be minted into a unique crypto object. Since it is now stored on a blockchain, it is no longer possible to change or edit it. It is unique as of now.
Before minting, however, brands face many important decisions and steps. Which products or objects from the brand portfolio have such a great attraction factor that their transfer to a NFT is worthwhile? Which products or objects could be developed specifically in order to distribute them as NFT and create the first collectibles for the metaverse? How can pricing and marketing of NFTs be handled so that they become a desirable perennial favorite with fans of the brands? Moreover, once these issues are resolved, digital assets have to be created to be converted into an NFT.
How do brands not lose track of the NFT jungle and create an NFT strategy that doesn't fizzle out but becomes a long-term success with fans and brand followers?
With Recordbay, we support brands through specialized NFT workshops that not only explain the technology behind non-fungible tokens, but also develop an NFT brand strategy that uncovers suitable fields, identifies possible marketing strategies, and establishes roadmaps for creating and minting digital objects as NFTs.
If you are interested in learning more about the topic of NFTs for brands or are interested in a targeted development of your NFTs brand strategy, please do not hesitate to contact us.