Why NFT for Brand Marketing is Important?

These days, a lot of marketing strategies arise to make their brand gaining more popularity. One of the best ways that even big brands choose to use is NFT for brand marketing. So, how do these marketing strategies work? What's the benefit and what brands that use these strategies?

Rest assured! In this article, you will get all the information about NFT, the best marketing strategies in the digital era. But, before we jump to the NFT strategies on brand marketing, let's talk about the NFT itself first.

An Introduction to NFT

NFT is digital assets that launch Forbes pages and represent real objects such as paintings, music art, and in-game items in short videos. They are bought and sold online, often paid in cryptocurrencies, and generally encoded in the same basic software as other crypto assets. The NFT has been around since 2014 and is now gaining in popularity as it is considered a convenient way to buy and sell digital art. NFTs are also generally categorized as having very limited transaction processing and have a unique identification code.

This fact is in stark contrast to most digital works, which in most cases have unlimited supply. But everyone can see the full range of digital works sold. So why do people so terribly want irreplaceable tokens in?

This happens to allow the buyer to own the original item in the NFT. In addition, NFTs have built-in authentication that acts as a proof of ownership.

Now, we already know the brief introduction on NFT. So, why do many brands now choose to use NFT as a part of their marketing strategies? Well, here's the explanation for you!

NFT as Marketing Strategy

For those who already understand NFTs, it represents a strategic opportunity for marketers and brand professionals to find new ways to win the hearts of consumers.

One of the reasons why NFTs are so important to brands is their position as a new representation of digital files such as art, audio and video for creative campaigns. At this point, we are not completely in the Metaverse world. NFTs are essentially brand tickets to the world of the future Metaverse.

The benefit of NFT itself, spoken by Neil Peter, a marketer expert, is that it is able to encourage interaction and create unique brand experiences. It is also possible to increase brand awareness and create interest in the brand.

Moreover, there are some other fields that are already using NFT as their main marketing strategies. For example, in the business field. Among them, NFTs are often used as links between tangible assets. It is proof of ownership of land and other assets.

You can store a physical certificate of ownership and consider it to be more secure on the blockchain with a short verification process. Buyers of them don't have to worry about their valuable certificates being lost or stolen by others. This is because the ownership data is already in the blockchain.

Now, you must be starting to understand how NFT works in marketing strategies for brands. Now, we will give you an example of a famous brand or company that collaborates with NFT for their marketing strategies.

SM Entertainment and NFT Marketing Strategies

That is what SM Entertainment does these days. SM Brand Marketing, a subsidiary of SM Entertainment, has just partnered with the cryptocurrency marketplace platform Binance. Korean entertainment company, SM Entertainment, will later explore the world of non-fungible tokens or NFTs, along with Binance as well as Metaverse blockchain technology.

The company's move marks the beginning of SME's new cultural slogan, "Play to Create," (which is kinda similar to Play 2 Earn), the term first coined by producer Lee Soo-man. This concept focuses on the Metaverse platform, which allows users to recreate content such as games, music, and dance using platform-specific tools and IP.

SM Entertainment already has a partnership with Binance to provide an environment where content creators around the world can freely participate in recreational activities using IP.

So, looking at this potential, NFT does have a bright future in brands' marketing field. Another brand that also uses NFT is Chameleon.

Nona, Fashion Brand That Use NFT

"Chameleon" using the art design of digital assets and non-fungible tokens (NFT). Through this collection, Nona became Indonesia's first local women's fashion brand to incorporate NFTs into fashion products.

In this latest collection, Nona collaborated with the artwork of one of Indonesia's largest NFT brands, the Superlative Secret Society. Nona and the top secret societies share the same vision of appreciating the world of art and fashion and helping local Indonesian artists.

This collaboration will have a wide range of impacts on artists and creators in the digital age who can apply their work using NFT media to fashion media as a whole.

Looking at the potential that NFT holds, it may lead this field to become more successful in the future.

Conclusion

NFT (Non-Fungible Token) extends beyond the world of cryptocurrencies and is very popular in the digital art scene. It is possible to visualize any object in the real world with the help of non-exchangeable tokens, each of which becomes a unique digital identifier. There is great growth potential in this area as tokens confirm ownership of digital assets.

Digital assets can cost hundreds of thousands of dollars. NFTs are pervasive in a wide range of industries and are popular daily in the fashion, sports, gaming and entertainment industries. The NFT concept goes beyond collectible markets. Based on this perspective, anyone involved in advertising, communication, branding, or business in general should immediately understand NFT trends.