Revolution Digital’s Director of Production, Gary Gimelfarb, discusses brand opportunities with Non-Fungible Tokens (NFTS).
Non-Fungible what? Tokens! Aka NFTs. And the second someone says something about them, you can bet your bottom dollar that most people are going to say, “I don’t get it, why would anyone buy a digital file for thousands or even millions of dollars?!” Not only have these ‘digital files’ really paid off for some investors willing to take the risk, but now they’re paying off in a big way for the brands we love—brands that are not only creating them, but also purchasing them. Why, you ask? Well, let me clear my throat, ah huh ah huh ah.
But first, like the micro machine man, let me quickly explain NFTs. The “non-fungible” part of non-fungible tokens means “unique,”—there can only be one, it’s non-interchangeable, and it’s stored on a digital ledger using blockchain technology to establish an easily verified and public proof of ownership. The NFT is essentially a digital certificate of authenticity that is received after any kind of digital file is minted. That’s the process of turning a digital file into an NFT. NFTs typically use the Ethereum or Solana blockchain technology, which are also both popular cryptocurrencies. So, in order to purchase an NFT, you’d likely have to do so in crypto, which can be a barrier to entry for some brands.
Nevertheless, many brands are looking to NFTs as a way to generate new revenue, engagement and buzz, to create unique virtual collectibles and to work with cutting edge content creators. NFT marketing is the state-of-the-art way to do that. See what I did there? (Art.) Brands like Taco Bell, Campbell’s, Arizona Iced Tea, Mattel, Nike, Coca-Cola and Stella Artois have already dipped their collective toe in the water, bringing lots of attention to their brands and generating millions in revenue without usually spending millions. Some brands, like Visa, are purchasing NFTs as investments while others, like Charmin, are using them to raise lots of money for charities. Who doesn’t love that?
For some brands, it makes a lot of sense to launch NFTs, especially for those in the CPG space who already have a loyal community. It’s an easy opportunity to get creative with content by turning your product into digital art and collaborating with other brands, content creators, designers, and animators that your brand might not typically work with. It’s kind of a no-brainer for brands that already have collectibles in the marketplace or for those looking to connect with younger consumers, crypto investors, and gamers. It’s also great for brands who are looking to launch products and grant access to premium experiences virtually or IRL. Many even believe that NFTs will become important assets in the metaverse. Lastly, brands can turn their ads into NFTs and monetize them many times over, (ideally) covering the cost of creating them and then some.
NFTs have the potential to open up new worlds, virtually and strategically, for brands. And as they continue to grow in popularity and generate revenue for the brands that are at the forefront, we’ll see even more jump on the bandwagon.Branded NFTs: