As marketers, we seek the newest methods, trends, and channels to grow and scale our businesses.
The latest buzz? NFTs and Web3's development.
Marketers are experimenting with blockchain and NFTs to achieve various objectives, such as strengthening customer loyalty, improving branding, and monetizing customer bases.
Web3 aims to do for businesses what social media did in the early 2010s.
It's about creating immersive, branded, and VR-enabled worlds that guide the shift from physical to digital engagement. In metaverse communities, people follow the same brands they do on social media but with a new level of attention and interaction.
As the world moves towards a more decentralised future, marketers must stay ahead of the curve to take advantage of the opportunities that NFTs and Web3 present. Are you ready to explore this brave new world of marketing?
NFTs and Web3 represent a new way to market, but understanding how we arrived here is crucial. Let's journey through the ages of the internet to explore the evolution of marketing.
Web1’s characteristics were:
The main marketing strategies at the time were:
Web1 was characterised by static pages, a shortage of content producers, and the use of frames and tables to align page components. Marketers relied on email, SEO, and traditional advertising (TV, print, radio) to reach their audience.
The potential of digital marketing blossomed on Web2, which is data-driven, consumer-centric, and mobile-centric. Centralized platforms like Facebook and Twitter gained immense influence and power due to the vast amounts of data they amassed. Geotargeting, DTC companies like DollarShaveClub and Peloton, and influencer marketing on platforms like Instagram became vital marketing strategies.
Sophisticated cross-channel consumer communications, enabled by tools like Braze and Segment, emerged in 2013. The launch of Shopify and WooCommerce in 2015 made it possible for anyone to build a DTC e-commerce platform. Mobile advertising evolved in 2016 due to the development of video capabilities.
As technology advanced, marketers became more focused on performance-based and analytics-oriented approaches. With new data collection methods, marketing gained unparalleled insight into user and customer behaviours and preferences, setting Web2 apart from its predecessor.
Now, with the emergence of NFTs and Web3, marketers must once again adapt to a new era of marketing.
Web3 innovators focused on improving the internet's backend, giving individuals ownership of their data previously controlled by private companies. In contrast, Web2 transformed the internet's front end. Web2 marketers aim to attract, engage, and retain customers, but Web3 marketers face a more complex task of reaching and maintaining a diverse range of stakeholders, including users, developers, and communities.
Decentralization is the key to Web3's radical transformation. It moves decision-making power from centralized entities such as Facebook, Instagram, and Google to distributed networks where individuals own their data. This means that, unlike centralized companies, you have control over your data.
Smart contracts and blockchain algorithms power Web3's decentralized networks. They allow for innovative mechanisms like NFTs that change how we think about ownership.
The increasing importance of communities on Web2, especially among DTC companies, has been observed before. Web3, on the other hand, heralds the next stage of community marketing, significantly when the number of stakeholders increases dramatically.
Stakeholders in web2 were essentially users or consumers. Developers, partners and investors are in the larger category of web3 stakeholders.
Web3 is not a large community; instead, it consists of several distributed communities that coexist.
Web3 marketing involves various strategies focusing on target markets, including customers, developers, and community stakeholders. Each component requires specific tactics such as SEO, product marketing, developer engagement, documentation, events, and training, all with a clear goal or objective.
Although traditional marketing channels like content marketing and SEO are still relevant, new web3 and NFT mechanisms will require marketing teams to adapt to the shifting landscape. As web3 places a greater emphasis on community building, marketing areas such as social media, influencer marketing, and content marketing will become more critical, resulting in larger marketing budgets for these channels.
By leveraging traditional and new marketing channels, web3 marketers can effectively inform and engage with their target audiences while building a solid and loyal community.
Web3 marketing frameworks are contextualised based on the particular format of the Web3 organisation. To tailor your strategy, you must ask the following questions:
The marketing strategy for each Web3 organisation is influenced by whether it is centralised or decentralised and whether it is tokenized or not. To achieve success, Web2's marketing strategy and tactics must work in unison with new Web3 marketing channels and methods.
NFTs bridge Web2 and Web3 by creating blockchain intellectual property (IP) and enabling digital scarcity. They offer Web2 businesses new opportunities to rewrite the brand-building playbook and achieve various business development and marketing objectives.
Nike is embracing the power of Web3 with the introduction of their new purchasing platform, dotSwoosh.
This platform not only addresses the issue of the value of virtual clothing but also marks a significant step in Nike's long-term plan to revolutionise sneaker drops. The platform, which recently went live, is expected to evolve into a community-driven store in the coming months, bringing sneaker drops into the twenty-first century with an easily accessible shop.
Nike's acquisition of the NFT platform RTFKT in 2021 has enabled them to leverage blockchain technology and intellectual property rights to create unique virtual items that users can own and trade, transforming the traditional brand-building playbook and opening up new opportunities for business development and marketing objectives.
In December 2021, Adidas embarked on a journey into the Metaverse (ITM) and launched 30,000 licensed Adidas Originals NFTs as part of its first foray into Web3. The collection sold out in hours, generating over $23 million in NFT sales through collaborations with Bored Ape Yacht Club, gmoney, and Punks Comic.
Building on this success, Adidas has announced its latest Web3 project, Virtual Gear, the company's first interoperable product.
This innovative product will enable Adidas customers to use their virtual gear in various Metaverse platforms, providing a seamless and unique experience for its customers.
The success of Adidas' initial Web3 launch and the exciting new Virtual Gear product demonstrates the company's commitment to embracing the potential of the Metaverse and the exciting opportunities that Web3 presents for the fashion industry.
Adidas’ first 16-piece virtual wearables collection was recently released as NFTs to the wallets of the brand’s existing Phase 2 Capsule NFT holders.
Mattel Launches NFT Marketplace for Digital Collectibles on Mattel Creations
Mattel, the world's largest toy business, has launched a non-fungible token (NFT) marketplace on its direct-to-consumer platform, Mattel Creations.
The marketplace offers a range of digital collectables from the company's historic brands, such as Barbie, Hot Wheels, Matchbox, UNO, and Fisher-Price. It is powered by the Flow blockchain, which is also used by the NBA Top Shot platform.
Mattel has previously issued NFT collections for its Barbie and Hot Wheels franchises.
Unlike many NFT marketplaces that require users to hold cryptocurrencies such as Bitcoin to make purchases, the Mattel Creations Digital Collectibles Marketplace was designed for "mainstream customers" and is accessible to anyone without the need for specialised knowledge or equipment.
The move marks a significant step for Mattel as it expands its digital offerings and embraces the world of Web3 and NFTs.
By Q1 2023, the marketplace plans to introduce a peer-to-peer trading infrastructure, enabling collectors to trade their digital collectables among themselves. These successful cases demonstrate a link between brand and customer incentives, effectively turning customers into brand ambassadors.
NFTs and tokenised assets are more than just digital collectables. They can serve as powerful vehicles for self-expression, community-building, and financial empowerment.
By buying NFTs, individuals can signal their affiliation with a particular social group or cause, showcase their creativity and taste, or even immortalise their identity in a digital form. NFT collections can offer exclusive perks and privileges to holders, such as access to events, merchandise, or other NFTs.
Moreover, NFTs can act as lottery tickets, enabling individuals to participate in the upside of the companies or projects they support, with even a tiny investment potentially yielding life-changing rewards.
Whether motivated by community, identity, or status, NFT buyers seek a piece of digital art and a meaningful and immersive experience that reflects their values and aspirations.
Collectibles selling for thousands of dollars is nothing new, and NFTs are no exception — they may be sold as digital trading cards or maintained as collectibles. Nike's recent acquisition of RTFKT and Adidas' journey into the Metaverse demonstrates that both brands seek to incorporate virtual apparel into their long-term strategies. DotSwoosh wants to bring sneaker drops into the twenty-first century through a readily accessible store. At the same time, Adidas has generated almost $23 million from NFT sales in collaboration with Bored Ape Yacht Club, gmoney, and Punks Comic
NFTs blend technology and art uniquely, with art comprising most current NFT use - programmable art alone accounting for 99% of all NFTs. Cryptokitties, the digital kittens that gained popularity among collectors in 2017, were the first NFT collectibles to be seen as such. This was also the first recorded use of NFTs. Companies have since offered various trading cards and collectibles on NFT platforms.
NFTs offer a novel solution for verifying the identities and tickets of attendees at major events such as concerts and festivals. Using a specific blockchain, organisers can create a limited number of NFT tickets that can be purchased through auction postings and stored on mobile wallets for convenient access.
The Coachella Collectibles initiative provides an opportunity to obtain lifetime festival passes and access exclusive on-site experiences, authentic artefacts, and digital collectibles. However, the recent collapse of FTX US, with whom Coachella collaborated to create an eco-friendly marketplace on Solana, means that caution should be exercised until further details emerge.
The intersection of NFTs and music: a revolution in ownership and revenue sharing. With NFTs, music ownership is no longer an abstract concept but a tangible asset, enabling musicians to receive 100% of their profits. Kings of Leon led the way, minting their album as NFTs, generating over $2 million in sales. The possibilities for artists are endless: unique digital artwork, exclusive merchandise, and unforgettable live experiences. This innovation in music ownership empowers musicians and enables them to bypass traditional revenue-sharing models.
Game Developers Leveraging NFTs to Boost In-Game Economies and Provide Unique DLC Assets. NFTs are transforming the online gaming industry, enabling players to own unique in-game items and supporting the growth of in-game economies through immutable ownership records. Limited edition DLC assets in the form of NFTs provide players with unique and rare items to enhance their gaming experience. However, it's worth noting that NFTs only apply to in-game items, such as characters and skins, not the entire game.
The use of NFTs in sports is a relatively new trend that involves capturing unforgettable sporting events in short video clips. These NFTs, which do not have a physical counterpart, can include game-changing moments in sports, such as touchdowns or slam dunks. While still in the early stages, NFTs in sports are expected to grow in popularity in the coming years.
NFTs are not just limited to artworks and collectibles but also expand into the virtual fashion world. Virtual fashion NFTs offer a unique opportunity for consumers to use these digital assets to decorate their online avatars instead of purchasing physical items. Burberry, Nike, and Adidas have already entered the market with their own NFT lines, catering to those with a taste for fashion and luxury. These NFTs provide exclusivity and uniqueness to the buyer, as each item is limited in quantity and one-of-a-kind.
NFTs are predicted to be utilised as real-world tokens as progress in the NFT industry moves in that direction. One of the innovative ideas is fractional NFTs, which enable multiple investors to own a portion of a single token. Fractional NFTs use smart contracts to divide the token into several pieces determined by the owner or issuing organisation, who then sets the minimum price. These NFTs present a compelling use case for investors who want to hold valuable real-world assets.
Two years ago, a building on Zurich's Bahnhofstrasse was tokenised and sold on the blockchain. BrickMark, a Swiss real estate investment firm, purchased the property and created bond-backed cryptocurrency tokens symbolising "shares" of building ownership. The tokens were available to qualified institutional investors interested in receiving a portion of the building's rental revenue while benefiting from property value increases.
The NFT market has opened a new avenue for users to register and sell domain names. By purchasing a domain on the NFT market, users can avoid needing a third-party organisation to administer their domain name. With exclusive rights to the name ownership, an intermediary is not necessary. Popular NFT domain providers include ENS, Handshake, and Unstoppable Domains.
Collectors and artists can use the following methods to determine the rarity of NFT projects:
Although these tools have made it easier for collectors to locate critical rarity information on NFT collectibles and projects, it's important to note that all exceptional knowledge is obtained from estimates and assumptions based on perceived facts. Rarity tools urge users to conduct research even after utilising them because not all ideas are applicable
NFT utility is a critical factor in determining the value of an NFT project. By offering tangible or intangible benefits, NFT utility provides investors with a valuable and concrete element associated with NFTs. This, in turn, can attract more attention and investment to the project.
Examples of tangible NFT utility include physical items or merchandise, unique access to exclusive events or content, and ownership of valuable collectables. The intangible utility can consist of expressing appreciation for investors, building relationships with fellow creatives in the industry, and online bragging rights.
An NFT project should provide both physical and intangible utility benefits to investors and the community. NFTs with utility are more likely to succeed, as their value significantly impacts investment opportunities.
To determine the utility of an NFT project, consider its unique benefits to investors and whether those benefits are tangible or intangible. By understanding NFT utility, artists and collectors can add value to their projects and attract more attention in the NFT market.
In addition to tangible and intangible utility examples, some NFT projects provide access to exclusive events, digital content such as music or artwork, and even voting rights in governance systems. Some NFT projects also incorporate gamification elements, creating a sense of competition and achievement among collectors. Additionally, some NFT projects may offer staking or other financial benefits for holding the NFT, such as revenue sharing or participation in a liquidity pool. Overall, the utility of an NFT project can come in many different forms and can be a significant factor in determining its value and success.
NFTs allow creatives to monetise digital assets, from artworks and music to digital fashion. As the value of NFTs continues to rise, investors are eagerly participating in this young market.
If you're planning to establish an NFT strategy for your brand, consider the following:
Record your planned marketing approach to ensure that you incorporate all the necessary crypto-marketing tactics to promote your digital artwork. It also helps to put yourself in the shoes of an NFT enthusiast and consider their buyer's journey, preferred channels, and preferred content types. This will help you determine the best ways to interact with your target audience and maximise the success of your NFT launch.
As a creator, learning how to create and sell digital collectibles on an NFT marketplace is crucial. This involves creating a digital wallet, funding it, linking it to a preferred NFT marketplace website, uploading the digital file you want to convert into a digital collectible, creating an auction for your NFT, and adding a description to sell your digital collectibles.
1) Create a digital wallet
Create a digital wallet to hold cryptocurrency like Ether, which is required to pay the upfront cost for minting your digital artwork into an NFT. MetaMask is popular due to its browser extension and availability of mobile apps.
2) Fund your wallet Parameter
Before minting, top NFT marketplaces require producers to pay an upfront digital collectible cost in Ether, the native coin of the Ethereum platform. If you don't have any ETH in your wallet, you must purchase it through an exchange.
3) Link your wallet to your preferred NFT marketplace website
After establishing and financing your NFT wallet, link it to an NFT marketplace website. Choose a platform based on its characteristics and the money-sharing ratio after selling your digital asset. For example, on Rarible.com, click the 'connect wallet' button and connect to MetaMask.
4) Upload the digital file you want to change into a digital collectable
Upload the digital artwork you want to convert into a digital collectible after linking your wallet to the best NFT marketplace. Choose your digital file formats, such as MP4, MP3, GIF, PNG, and more.
5) Create an auction for your NFT Parameter
Decide how to sell your digital collectibles on the NFT marketplace, such as fixed price, open auction, or timed auction. Each has pros and cons, so choose the option that fits your needs. Determine a fair price for your NFT, considering the hefty costs on the NFT marketplace.
6) Add a description to sell your digital collectibles
Include a listing title and description to improve your chances of selling digital collectables. Determine the proper royalties to collect from each subsequent resale of your digital collectible, striking a balance between earning a decent sum and discouraging others from purchasing your NFTs.
The NFT market presents a significant opportunity for creators and artists to monetise their digital artwork and connect with a broader audience. However, success in this market requires a comprehensive understanding of the market trends, target audience, unique value proposition, pricing strategy, and technical knowledge to mint and sell NFTs in a leading marketplace. By following the steps outlined above, creators can develop a successful NFT strategy that sets their digital collectibles apart from the competition and maximises their potential for success in the market.
You can sell your digital art and artefacts on various NFT marketplaces and create your platform by choosing a marketplace that aligns with the characteristics of your items. To increase your chances of selling your NFTs at a fair price, consider listing them on multiple platforms. Some popular NFT marketplaces for trading digital assets include OpenSea, SuperRare, Rarible, Myth Market, MakersPlace, and Crypto.com.
Creating a public NFT roadmap is a crucial step towards establishing credibility and gaining the trust of your audience. By outlining your project's goals and milestones, you demonstrate your commitment to its success and provide a clear direction for its development. This is particularly important in the fast-paced world of NFTs, where investors and collectors constantly look for promising projects.
According to Web3 and NFT marketing experts, having a public roadmap will soon become the norm for every startup or scale-up that wants to be taken seriously. LaunchNotes and Productboard are two popular road mapping tools that make creating and managing your NFT project's roadmap easy. By leveraging these tools, you can ensure your project is perceived as trustworthy and investor-friendly, setting yourself up for success in the competitive NFT marketplace.
The NFT Calendar is a popular platform for NFT collectors and enthusiasts looking for the latest NFT drops. By listing your NFT release on the calendar, you increase your chances of gaining more exposure and reaching a wider audience.
In addition, it provides a convenient way for potential buyers to discover and purchase your NFT artwork or collectible. Be sure to include all the necessary information accurately to ensure that your release is featured correctly on the platform.
Boost your NFT release visibility by featuring it on the NFT Calendar, a comprehensive platform showcasing exciting NFT drops across various marketplaces. Adding your release to the calendar allows you to reach a wider audience of collectors actively searching for new NFTs.
Fill out the form provided on the platform with the necessary release information, including the title of your digital collectible, artist details, description, date and time of release, market platform, and link to your digital artwork.
Take advantage of this effective marketing tool and maximise the potential of your NFT release.
Developing a strong community is crucial in web3, often preceding product creation. Artists and creators can build a community by offering a roadmap, outlining their plans and commitments, and engaging with potential supporters in the lead-up to a launch. By involving the community in decision-making, such as voting on proposed projects, creators can generate greater interest, support, and buy-in for their NFT projects. By prioritising community building, creators can establish a loyal following that eagerly anticipate their next releases and help promote their work.
Regarding Web3 projects, traditional key performance indicators (KPIs) may not necessarily apply. Instead, new metrics and KPIs may be more relevant to measure the success of your project. Some key performance indicators necessary for Web3 projects include the size and engagement of your community on social media platforms such as Twitter and Discord. Additionally, measuring sell-out time or the "floor price" of your NFT collection can indicate high demand and belief in your NFT initiative.
It's important to note that Web3 is still a relatively new market compared to the more established Web2. As such, marketers should focus on product engagement or community metrics while selecting KPIs. It's crucial to start with a clear purpose, build a community around that purpose, and then tailor growth strategies to match that community. By doing so, you can ensure that your Web3 project is successful and meets the needs of your target audience.
To succeed in the NFT market, it is essential to have a clear marketing and community interaction plan in place. This involves connecting with potential investors who appreciate your art and promoting it within the community. By developing a solid strategy, you can differentiate yourself from the competition and create Web3 and NFT projects that people will love.
To stay ahead in this dynamic and ever-changing market, it's important to continuously research and stay connected with existing communities and NFT industry leaders. Joining existing groups and channels can provide valuable inspiration and assistance in building your own community.
Ultimately, combining your creative and commercial skills can lead to a successful NFT venture. However, if you need additional support in managing your Web3 marketing efforts, consider delegating the task to a professional consultancy like us, MEHRHOFF DIGITAL.
In summary, success in the NFT market requires a combination of creativity, commercial skills, community building, and staying informed about the latest developments in the market.
