1. Reward Engagement and loyalty
Gucci’s latest foray into NFTs is 10KTF, a narrative experience designed as a treasure hunt in the metaverse, rewarding fans for engagement and early adoption. The 10KTF launch is masterclass in creating anticipation and exclusivity in the metaverse. First, fans must register for an “allow list” to qualify for one of 5,000 “mint passes”. To redeem a mint pass, fans must own an NFT from one of a range of included previous NFT projects, and cough up 1 ETH, or about $2,700. This comes after SUPERGUCCI, an NFT partnership between Gucci and cult toy brand Superplastic, a collection of digital and physical collectibles launched in early 2022. So far in 2022, Adidas, Nike and Gucci have generated NFT sales of $137.5 million.
2. Create a buzz
McDonald’s first ever NFT promotion commemorated the return of the McRib with 10 individual McRib NFTs (MCNFT) made available to those who retweeted the brand’s invitation. McDonalds isn’t the exception. Everyone from F&B giants to local restaurants are experimenting with NFTs to help market their brands. In March 2022, Papa John’s Pizza unveiled a free collection of nine virtual bag designs inspired by its pizza delivery hot bag. The pizza brand’s first NFT campaign fell afoul of the UK Ad Authorities, who noted that it “took advantage of consumers’ inexperience or credulity” — a note of caution to brands to invest time and thought in their NFT project, before diving in.
3. One-off experiences and physical avatars
Fans hold on to concert tickets, tickets to sporting events — memories of events they enjoyed and want to treasure. NFT tickets let you create digital tickets that are souvenirs too (NBA Top Shots is a successful example of this NFT strategy). Now brands can monetise unforgettable moments — concerts, runway shows, events, launches, games, and more. Just as sports fans might enjoy putting their sports jersey on their wall, in the future envision brand collectibles that are digital, and can be hosted via hardware. So the NFT isn’t just virtual, but comes with a physical avatar that can be enjoyed with family and friends.
4. Build a community
Most early NFT projects took off because of spirited, hyper-loyal communities — CryptoPunks, the Bored Ape Yacht Club and the Pudgy Penguins, all have their own clique. From sharing jokes on Discord to complimenting each other on their Twitter avatars, community members have since moved to real world events and meetups. Other compelling examples include “Women Rise” a collective to support women activists, artists, scientists, coders — some welcome diversity in the blockchain universe.
5. Raise money for charity
NFTs allow the creation of visual, non-deletable “receipts” to show the impact of every donation. This has advantages for both brands and non-profits looking to raise money for charity. Taco Bell sold their brand-themed NFTs with profits donated to the Taco Bell Foundation in support of young people’s education. Rewilder, a crypto-native non-profit is using NFT auctions to raise funds to buy land for reforestation. The caveat of course, is the impact of NFTs on the environment — WWF UK faced considerable backlash over plans to sell NFTs to fund conservation work, with donors accusing the charity of greenwashing Ethereum and Bitcoin.
6. Consider the environment
The average NFT generates 440 pounds of carbon — the equivalent of driving 500 miles in a gas-powered car — producing emissions 10 times higher than the average Ethereum transaction. Ethereum is working on reducing its energy consumption and experts are exploring new ways to mitigate the climate-impact of NFTs, but there’s still some way to go. With average consumers beginning to express their concerns, large brands and businesses have no choice but to build carbon neutrality (and climate positivity) into their brand — and their NFTs.
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