Why do some brands fail to do NFT? (With tips for avoiding pits)

It has become a phenomenon to make JPG into NFT .

You can download these images to your computer, use them as Twitter avatars, or share them on Facebook or Instagram, and you can easily search for them on the Internet.

Even if anyone can easily steal these NFT images, it still can’t stop the enthusiasm of fans. Recently, a buyer bought an NFT for a sky-high price of $69.3 million.

If you think this is a puzzling investment strategy, then welcome to the crazy and weird world of NFT.

Although NFTs may initially seem to be a series of weird digital art projects, they are evolving into an important corporate marketing method.  

What is the reason for the existence of this wonderful species of NFT?

The full name of NFT is “non-homogeneous token”, which is a unique asset created through blockchain technology.

What can you get by buying NFT? From a technical and legal point of view, you can obtain digital ownership of artworks (Translator’s Note: Only within the corresponding public chain ecosystem). Even, NFT can benefit your real life, such as owning part of the ownership of a Bali villa, being allowed to participate in industry conferences or drinking beer for free for life.

 

Why do some brands fail to do NFT?  (With tips for avoiding pits)

NFT dolls and accessories launched by Burberry

Of course you can also find other articles about the history of NFT. Can you know why they have such strange names and how they are formed.

But those articles will not let you really understand the internal logic of famous brands such as Pringles, Superplastic, Campbell’s, Taco Bell, Dolce & Gabbana, Dole, Proctor & Gamble, and Anheuser-Bush to embrace the NFT boom .

Potential promise of brand marketing with NFT

NFTs are exciting, and many companies are rapidly adopting them. If you are a marketer, someone in your company may soon ask you about testing the NFT.  

This is why you should read this article.

Coca-Cola recently sold a set of NFTs featuring Norman Rockwell prints to consumers for $400. Recently, Coca-Cola earned $575,000 from the sale of 4 NFTs. These NFTs include a digital animation of a Coca-Cola refrigerator, and a space-mounted jacket that your digital image can wear on Decentraland (a virtual reality platform).

The Coca-Cola Company also included physical assets: a real refrigerator filled with Coca-Cola.

 

Why do some brands fail to do NFT?  (With tips for avoiding pits)

Coca-Cola NFT works

The Coca-Cola Company received far more than half a million dollars in return from the refrigerator filled with ice soda and some 3D illustrations (also known as NFT). It also gained a higher brand exposure rate and consolidated its brand image.

Challenges and problems

I don’t like drinking Coke, but I really like the way Coca-Cola uses NFT to create a new relationship between consumers and brands. 

Not all brands of NFT can succeed. In fact, most brands of NFT will fail in the next few years. Therefore, marketers should learn how to adapt and use new things and understand the community behind them.  

So far, some projects have performed poorly. Real estate developer Mohamed Hadid’s recent real estate project includes an NFT financial product, which consists of digital records of assets. As of September 2021, his real estate prices have dropped by half…

An NFT project of WWE, a well-known wrestling entertainment company, was also mediocre. Although this is a company that knows how to make fans scream, when WWE launched 500 sets of NFT “golden packages” with a unit price of $1,000, only 37 sets were sold. The buyer paid for a non-functional toy and a box of limited edition merchandise personally selected by wrestler John Cena.  

Advice to the brand issuing NFT

As these examples show, one of the biggest risks that brand NFTs may face is that people are not interested in them. Brands should establish emotional connections with non-crypto customers and use the enthusiasm of the crypto community to build momentum for the issuance of NFTs.  

This leads to the second key point. An NFT is not just a product you sell, it is more of a cooperative relationship between the brand and the customer. Just as Coca-Cola has already done, companies should view the launch of NFTs as a way to create emotional links rather than commercial profits. In other words, the prerequisite for a successful NFT is to make customers excited.

In addition, the crypto community may suspect that brands are making huge profits by receiving the popularity of NFT issuance. Like all consumers, they know that the ultimate goal of all corporate actions is to make money.  

 

Why do some brands fail to do NFT?  (With tips for avoiding pits)

Coca-Cola NFT works

Therefore, the third key point is that if a brand’s NFT product is to be successful, it should eliminate consumer suspicion and show its sincerity. Some companies achieve this goal by donating NFT profits. For example, the Coca-Cola Company donated NFT proceeds to Special Olympics International. Pringles also stated that it will transfer the profits from CryptoCrisp NFTs to artists working with the company.  

We have reason to believe that by 2025, NFT will become a regular part of corporate marketing tools. The above three suggestions can help the brand’s NFT project succeed.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/why-do-some-brands-fail-to-do-nft-with-tips-for-avoiding-pits/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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