Brands misread NFT marketing?

In April last year, the advent of the “Bored Ape Yacht Club” (BAYC Bored Ape Yacht Club) detonated the entire NFT (non-fungible token) market, and NFT began to become something that everyone is talking about, but few people can say clearly. thing.

Coupled with the popularity of “Metaverse” and “Web3.0” in recent years, NFT naturally has a certain bubble, but we can also see that many brands are actively conducting NFT-related explorations, and NFT may be able to bring more benefits to brand management. multi-value.

Previously, a large number of media in the industry have reviewed the NFT marketing cases of brands, such as LV integrating NFT into games, Burberry creating NFT virtual peripherals, Pizza Hut releasing NFT pizza collections, etc. There are also calls for “everything can be NFT” in the industry. But it is worth noting that most of the cases discussed by the industry come from overseas markets.

There are still a lot of gaps in how the combination of NFT and marketing can be implemented in the Chinese market. However, Chinese NFT marketing and overseas NFT marketing are likely to have huge differences in development paths.

It can be found that in addition to platform companies such as Alibaba, Tencent, and JD.com, the brand companies that really took the lead in the domestic market to explore NFT marketing in depth are not only traditional multinational brands such as Oreo and McDonald’s, but also appear in Li Ning, An Muxi. Among a large number of local brands such as , BYD, Xtep, etc., in terms of the depth of NFT marketing practice, local brands even go further than multinational brands, not only limited to the release of digital collections.

For example, in the first half of this year, NFT marketing represented by the sportswear industry exploded:

In January this year, Anta and Tmall jointly released the Winter Olympics-themed ice and snow digital collection, and built an Anta digital museum using technologies such as VR;

In March this year, Xtep released an NFT digital collection called 160X-Metaverse at the new product launch conference, and established the official Metaverse Mall, announcing that it became the first sports fashion brand to step into the Metaverse;

Just this April, Li Ning launched the Boring Ape Trend Sports Club. Li Ning purchased the avatar of Boring Ape #4102 and incorporated its image into clothing products and communication materials.

It is worth noting that the marketing of Li Ning and the boring ape cross-border, the deep integration of NFT and products, so that the boring ape can truly be unified with product sales, rather than stop at the release of “digital collections”, this move may open up NFT marketing of greater imagination.

Brands misread NFT marketing?

Picture from Li Ning

If NFT is the future direction of brand digital marketing, then local Chinese brands may be able to achieve a first-mover advantage. But the first thing we need to ask is, why do multinational brands have little taste in China’s NFT marketing?Why do many foreign NFT games seem not to be reused in the domestic market?

At the same time, we might as well explore further, what is the use of NFT marketing? Is NFT a temporary gimmick, or does it have long-term internal logic? Can NFTs be an important variable to change digital marketing?

Different NFT models at home and abroad

Talking about NFT at home and abroad is often not in the same context, so we cannot copy the foreign NFT marketing model. From the end point of view, the development of NFT at home and abroad is likely to show two completely different paths.

To put it simply, most of the overseas NFT trading platforms are built on a decentralized public chain (such as Ethereum). The so-called public chain means that users can freely enter and exit, which leads to at least two results:

1. In the decentralized public chain NFT system, users have real ownership after purchasing NFT;

2. After last year’s development, the overseas NFT market is dominated by secondary transactions. The market is gradually mature and has a head effect, with obvious financial attributes.

Brands misread NFT marketing?

Image from Essence Securities

But in the domestic market, NFT trading platforms are mostly based on centralized “consortium chains” (such as Ant Chain). The so-called “consortium chain” is actually a “private chain” recognized by the alliance participants, and the user’s entry and exit actually need to be reviewed by the “consortium chain” manager. This also leads to the following results:

1. After users purchase NFT, they do not fully own the ownership, but are more similar to a right of use, which is still constrained by the platform manager in essence;

2. NFTs emphasize more on collection, aesthetics and other attributes. The circulation of NFTs in the secondary market is restricted, the issuance of NFTs has become more important, and NFTs have a clear tendency to de-financialize.

It can be found that the current operating modes of NFTs at home and abroad are fundamentally different, which is largely due to the guidance of national policies. The financialization of NFTs is likely to breed money laundering and other illegal activities, and it also has certain impacts on the existing financial system. shock. Therefore, if the national policy orientation remains unchanged, the future domestic NFT development model is likely to be logically different from overseas.

In fact, domestic platforms are less likely to use the term “NFT” now, but instead use the more compliant name of “digital collection”.

For overseas markets, the decentralized blockchain technology behind NFTs is its main attraction, and when this no longer exists, the attractiveness of NFTs to brands plummets.

The centralized nature of domestic NFT works and the circulation restrictions on the secondary market have led to the fact that NFT does not have the spreading effect of continuous circulation and diffusion. At the same time, it is necessary to build or rely on the relevant “consortium chain” platform, which not only has high investment and high risk characteristics, and may eventually show the same results as conventional joint champions in practice, which may also be a major reason why multinational companies have not actively tried NFT marketing in the Chinese market.

Therefore, many brands may be confused. In addition to releasing digital collections to gain a wave of attention, what can be deposited after marketing? If NFT cannot be circulated and traded, is there any marketing value just by virtue of user collections and personal display?

In addition to digital collections, what value can NFTs bring to marketing?

As a brand side, we need to try to change our thinking and explore the Chinese model of NFT marketing.

A more centralized NFT model can collect user data into the brand, and the brand can directly connect with users through NFT, and has the opportunity to conduct more refined user operations. The NFT platform system may eventually become the digital upgrade direction of the CRM system. .

Shiqu once pointed out in “4 Marketing Bonus Opportunities in the Next 15 Months” that the “Metaverse marketing three-piece” is: brand virtual person, brand NFT, and brand Metaverse space. Virtual human is an upgraded version of brand social media accounts, NFT is an upgraded version of the new membership system, and Metaverse is an upgraded version of Campaign Site, which was originally a product of the PC era. Coupled with the interaction between the three, future In the age of the Metaverse, marketing meetings have a new look.

Specifically, NFT marketing has at least the imagination of the following application scenarios:

1. Provide users with exclusive gifts, coupons and membership rights;

2. Form users’ sense of brand participation and identity, and NFT works become “social currency” displayed by users;

3. Linkage between NFT works and physical products to form a matrix and premium;

4. Cross-border marketing with leading NFT projects is equivalent to IP taking advantage of the situation;

5. Test and collect user feedback through the issuance of NFT, and feed back the product development system;

6. Reward user contributions through NFT, forming a community creation economy under the NFT point system;

If we analyze it from the perspective of brand digital upgrading, we can find that NFT and “Metaverse” are not marketing gimmicks, but have the inherent logical support for their long-term development, but at present, a large number of brands are probably not aware of their presence in the Chinese market. strategic significance.

Judging from the current market trends, mature sportswear brands such as Li Ning, Anta, and Xtep have a large user base, and their products have certain fashion-leading attributes. At the same time, sports itself also has a clear promotion path for virtual reality, which has become the first to eat.” The realm of the Metaverse” cake. With the further spread of the “Metaverse” marketing bonus, various consumer products may quickly enter the “Metaverse” marketing in the future.

Of course, the “Metaverse” itself is also a long-term and gradual realization process, which requires a large number of virtual reality-related industrial facilities. Now many governments are promoting the “Metaverse” industrial layout, and Shanghai has also directly incorporated “Metaverse” into the 14th five plans.

The practice of “Metaverse” involves the overall digital transformation of enterprises. Therefore, we recommend that brands actively try “Metaverse” marketing, but also avoid the betting mentality, control risks and allocate budgets more reasonably.

With the help of NFT marketing, brands usher in a new round of IP opportunities?

“Boring Ape” is obviously not just a series of NFT works, but also a cultural IP, which can also be seen from the release of Li Ning’s “Boring Ape Trend Sports Club”. It is precisely under the blessing of IP effect that the price of “boring ape” in the secondary market can rise.

According to the statistics of the cumulative transaction volume of NFT projects on the Cryptoslam platform, it can be found that overseas NFT transactions already have obvious head effects (“Boring Ape” ranks third in the figure below), and the head NFT projects have obviously become IP, and their status No change is expected in the short term. So the question is, what is the profound impact of NFTs such as “Boring Ape” on the IP incubation model? Are there new IP opportunities that can be captured by brands?

Brands misread NFT marketing?

Image via Cryptoslam

We might as well briefly analyze the IP road of “Boring Ape”. In addition to having a first-mover advantage in time and a moving image, the following two points may be more important:

1. The terms of rights and responsibilities state that the user truly owns the ownership and all intellectual property rights, that is to say, the buyer (owner) can obtain royalty income after authorizing commercial use, which is extremely rare in previous NFT projects. The free circulation of intellectual property rights allows the owner to become the author and satisfies the user’s active dissemination interests;

2. The “Boring Ape” project is indeed constantly operating and updating, and it has tried some innovative operation methods. It seems to be a more practical and stable project. Recognized by many experienced users.

As for breaking the circle through the spread of Twitter big V and celebrity effects, it is more the result of the above reasons, which eventually led to the popularity of “Boring Ape” in social networks.

It can be found that in the NFT marketing of Li Ning and “Boring Ape” mentioned at the beginning of this article, the important reason why Li Ning can directly apply the purchased “Boring Ape” NFT image in product printing and materials is because ” “Boring Ape” has opened up all intellectual property rights, and Li Ning can use and develop it at will without asking for authorization from the author again. In fact, in addition to Li Ning, companies such as Greenland and Beichuan have recently made IP marketing attempts by purchasing “Boring Ape” NFT works.

Brands misread NFT marketing?

The picture comes from the public account Greenland G Premium Club

This circulation of intellectual property has greatly accelerated the application and promotion of NFT works, reduced the cost of IP cooperation, improved the efficiency of IP cooperation, and is expected to bring more IP marketing space for brands.

On the one hand, the creators of “Boring Ape” directly convert the long-term licensing income of intellectual property rights into one-time sales revenue; on the other hand, the creators of “Boring Ape” can also continuously create new images of the Bore Ape to strengthen the IP as a whole. value. It can be said that in this environment of intellectual property circulation, the logic of IP incubation is also significantly different from the traditional model.

With the boost of more brand IP cooperation, the IP value of “Boring Ape” may be further amplified in the future, and cooperation with IP projects such as “Boring Ape” may become an effective means of brand NFT marketing.

At the same time, it can be expected that “Boring Ape”, as a global IP, may also be able to help companies spread their brand value in overseas markets. For example, the cooperation between Li Ning and “Boring Ape” this time has received a good response in the “currency circle” at home and abroad, allowing more overseas users to pay attention to the value of Li Ning’s national trend.

If we look to the future, there may be more projects with free circulation of intellectual property like “Boring Ape”. Although these emerging projects are not expected to reach the mass influence of “Boring Ape”, they may penetrate into certain circles. Among the high-level groups, these emerging projects can also become the focus of brand NFT IP marketing.

In the context of the Metaverse, how can companies create their own IP?

As far as the current situation is concerned, the free circulation of intellectual property rights is rare in NFT projects, which also leads to the popularity of “Boring Ape” IP to a certain extent due to its scarcity. When similar projects appear in batches in the future, can they be copied? The popularity of “Ape” is still unknown.

But now we might as well look at other popular NFT projects, and try to explore whether brand companies can use NFT and Metaverse related tools to create their own Metaverse IP in the new IP paradigm.

In the above-mentioned NFT list of Cryptoslam statistics, the first-ranked “Axie Infinity” is an NFT game, the second-ranked “Cryptopunks” is a veteran blockchain project, and the third-ranked “Boring Ape”. Perhaps the sixth-ranked “NBA Top Shot” deserves a little attention, which is an NFT card collection game officially authorized by the NBA.

Brands misread NFT marketing?

Image via NBA Top Shot

The “NBA Top Shot” card is equivalent to a derivative of the NBA brand. It can be understood as the “NFT digital figure” of its players. On the one hand, it amplifies the original IP effect of the NBA and realizes the expansion of the circle; on the other hand, it is Find more IP monetization methods for the NBA. At the same time, according to Nielsen data, the average age of NBA viewers is as high as 43 years old, and “NBA Top Shot” also has the effect of rejuvenating the brand.

Looking back, in the domestic NFT market, due to the division of the “consortium chain” of major platforms and the restriction of secondary market transactions, it is expected that the probability of IP production and the influence of IP are not as good as overseas, and it may be difficult to create “boring apes”. It is a purely original IP project, but there may be opportunities to further expand the brand IP through projects like “NBA Top Shot”, and realize the expansion of brand value in the “Metaverse” scenario.

Compared with third-party IP incubators, the quality of the brand lies in the fact that the NFT project can be more closely bound with its own business, and a richer combination of strategies can be used to strengthen the brand’s own IP value.For example, in addition to NFT works, brands can also interact with users through virtual digital people and connect real products with NFT works.

In other words, through the combination of “virtual digital human + NFT + Metaverse space”, coupled with long-term continuous brand operation, corporate brands may (compared to third-party institutions) have a better chance to become the head of the domestic NFT field IP.

The IP logic behind it is: as an IP interactive image, a virtual digital human becomes the basis for amplifying brand influence, while NFT can be used as a community key and monetization mechanism, as a channel for IP community and commercialization, and Metaverse as an interactive scene, carrying All kinds of brand interactions in the digital age.

It can be found that the IP incubation model of “Virtual Digital Human + NFT + Metaverse” is more efficient than the traditional “Disney-style” IP creation. But it is not difficult to foresee that the IP incubation model of “virtual digital human + NFT” will usher in more intense competition in the future, so the first-mover advantage may also be more important.

In the short term, there is currently no obvious top IP in the domestic NFT market, and this may also be a major opportunity for companies that are actively deploying “Metaverse” marketing; in the long run, embracing “Metaverse” can be regarded as brand digital transformation The direction of the brand will also be the only way for future brand development.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/brands-misread-nft-marketing/
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