Taco Bell became the first fast food chain to jump in on the NFT bandwagon, selling a limited number of digital art pieces for a dollar (less than the cost of a taco). Some of these NFTs have already resold for thousands of dollars, offering the perfect marketing and PR opportunity to boost brand awareness and market to new audiences.
Pizza Hut Canada recently utilized NFTs to promote slices of digital pizza while Charmin rolled out its own “NFTP.” Get it?
Before we go any further, let me break down what an NFT is.
An NFT is a non-fungible token. Unlike money that is fungible — something that is interchangeable with another unit or units of the same value (such as a $20 bill for another, or two tens), non-fungible assets cannot be exchanged for another of equal value.
An NFT is one of a kind. An original.
Still unclear. This artist breaks it down beautifully (thank you Robert Martin).
The “T” in NFT refers to token, a unit of currency on the blockchain. So NFTs are bought and sold using cryptocurrency. Blockchain technology allows for the creation and distribution of tokens, such as Bitcoin or Ethereum, fungible units of measure and exchange.
So how can brands take advantage of NFTs?
Like Taco Bell, Pizza Hut Canada and Charmin, brands can create “crypto-collectibles” or digital certificates that represent a unique asset which can be attached to photos, videos, art, audio, text, products, and anything else.
Brands can use NFTs to promote a new product or service, celebrate a milestone event or a moment in time, fundraisers and sponsorships.
According to Campaign, Nike filed a public patent to design an NFT-enabled physical shoe, which it will apply in the digital world, such as video games. NFTs can enable the NFL to offer custom video clips of the greatest moments in Super Bowl history.
The possibilities are endless.
From a branding and marketing perspective, we are still very early in the NFT game. Buying an NFT requires cryptocurrency, going to an NFT marketplace such as KnownOrigin or Rarible to participate in an auction. Then there is the bidding process.
That said, NFTs are a new and exciting medium that should not be underestimated, especially for branding, marketing, and awareness. I am willing to bet an NFT on it.