In the Web3 era, how do traditional brands play NFT marketing?
Written by: Mr. Qiu
Recently, I have read many articles about how Web3 can help brand marketing, and I have gained a lot. However, the feedback shared to the small partners who are still doing brand work in the front line is: If you still can't understand, you can tell me how to do it directly. Are there any successful cases for reference? Is the effect good?
This reminds me that for many Web2 marketers, the learning threshold of Web3 is really high and there are many concepts. Web3 has become a kind of metaphysics when we talk more about the original things. It's even more difficult to touch, and I don't know how to touch it. I heard a lot of content, but when I came to the customer to make a proposal, it finally became: send an NFT and make a virtual image.
So, for traditional marketers, there may still be a need for guidance on marketing Web2.5: let's not say it's too deep, let's not say it's too big, let's say it's clear at a glance, let Web2 people see it is not too powerful, but also feel a little deja vu - alas, isn't this the same thing we played in those days? It's just a new shell, called Web3!
With this feeling, the goal has been achieved - Web2 and Web3 are not important. It is still important to sell goods in another place!
Therefore, I want to use a very practical way to make a simple guide for you in this article.
I hope that when you finish reading this and report to your boss, your boss can understand it; When reporting to the customer, let the customer pay the bill; When you are your own boss, you are also motivated to lay out Web3.
Today, let's start the first part and talk about how to use NFT marketing for brands.
Why do traditional brands need NFT marketing?
[New users] Among the audience of NFT, there are new users with brands to catch
Among NFT audiences, there are audiences that brands cannot reach before - encryption enthusiasts and more and more Generation Z people who are used to participating in the Web3 world; Brands can reach more people who are not audience groups before through NFT marketing.
[New creativity] The current dull marketing needs new creativity
The existing digital marketing market has entered a stage of tedium and little innovation. However, the market situation is not optimistic in the general environment, and more fresh ideas and content are needed to stimulate consumers.
[New image] Good NFT marketing can bring about brand renewal
The renewal of traditional brands has been explored deeply in the Internet era. The tide flu of NFT itself and the culture it represents can help the brand quickly gain the favor of Generation Z people.
[New community] In the coming Web3 era, the brand needs to establish a more existential community
The co creation attribute of the Web3 community has shown its strength. In the Web3 era, brands need to break the boundaries between communities and brands, have better communication mechanisms, and have a community atmosphere that can promote communication.
[New era] The era has gone forward irreversibly, and brands need to try and accumulate experience earlier
Nowadays, many big brands have established Web3 departments or formulated Web3 strategies. On the road of brand+Web3, it may no longer be a question of "do it or not", but a question of "do it early or late".
[New growth] NFT marketing can become a new growth point for brands
The brand has the opportunity to create new revenue with the help of NFT.
How do traditional brands play NFT marketing?
1) Cooperation with blue chip/strong label/strong style NFT
Cooperate with blue chip NFT and leverage the powerful influence of NFT itself to influence and radiate Web3er and ordinary audiences at the same time.
Li Ning of China, with the help of the joint marketing of Boring Ape # 4102, sold the clothes printed with the NFT image and held a flash event in Sanlitun; He also made many innovations on the image of the boring ape, and made the boring ape # 4102 wear the same award uniform as the Olympic champion, hold the classic shoe box and make it into a large statue.
Cooperation with NFT with strong labels can help brands play a greater role in brand marketing with special needs.
For example, the World of Women NFT, which has formed a very distinctive feature, is widely recognized for its feminism, tolerance and diversity, and has become a very good community culture. When the brand needs to be the radiation influence of female users, it is a very good choice to cooperate with NFT organizations such as World of Women.
Brands can also demonstrate their own culture and values by cooperating with the strong stylized NFT.
Web3 itself has a subversive attribute. Since the popularity of NFT, we have seen a lot of NFTs that are different from the past aesthetics emerge. Many people have asked why such ugly NFT is so popular. Next time, perhaps you can explain to others - because in this new world, people have a desire to subvert the past aesthetics and the current values.
For example, the mfer matchmaker, who seems to draw casually, is not refined and casual in the current aesthetic view; The matchman slumped on the seat, looking very sad - but it is this kind of refined aesthetics that represents a resistance to the refined aesthetics of the past; It is this sense of loss that caters to the tiredness of the times.
Therefore, the brand can also consider how to use the lower cultural spirit represented by NFT to design NFT's opportunistic marketing. NFT cooperation similar to mfer can itself represent an attitude.
2) Let NFT link with physical goods
Why do you do this?
In fact, many physical goods have been difficult to stimulate users' desire to share. The combination of NFT and physical goods can help brands use NFT matching the sales of goods to stimulate users to share to social media when promoting new products. The current trend and cool attributes of NFT give consumers an opportunity to make a second online display.
For a simple example, if buying a new GUCCI bag and sending it to the circle of friends is more or less deliberate, it will become more natural and simple to show the NFT given by the GUCCI entity.
How to link with physical goods?
a. Packaging sales of physical products and NFT
b. Produce independent physical product line based on NFT
c. Create NFT version of physical product
d. Take NFT as the most physical product exchange coupon
a. Packaging sales of physical products and NFT
There should be no need to explain this, just go to the case.
Gap and artist Brandon Sines jointly launched NFT bundled hoodies in mid January 2022. The limited quantity of physical objects is 100 sets, divided into four levels: ordinary, rare, epic and unique. It has also become the most limited clothing in the history of GAP.
b. Produce independent physical product line based on NFT
——Develop co branded products with NFT holders
This is a relatively conventional operation. For details, please refer to the cooperation between Li Ning and Boring Ape mentioned above.
——NFT holders establish derivative brands
Because holding NFT means you have the corresponding commercial development right of NFT. Based on this commercial development right, you can develop corresponding products. Big name NFT itself has a strong potential for viral transmission, which directly has a brand effect and reduces the cost of customer acquisition.
Although the public's first impression of BAYC (Boring Ape) is that stars change their faces, it actually brings an innovation that affects the entire NFT ecology - IP business licensing. Based on this, a large number of BAYC owners have developed nearly 80 derivative brands based on BAYC IP, including fashion brands, music, hip-hop, food, drinks, skateboards, basketball, clubs, podcasts, games, etc.
The article "Yuga Labs' IP Empire: Nearly 80 Brands, Creators, Projects and Artists" written by Forj CEO Harry Liu gives a very comprehensive introduction to these 80 IPs.
(Refer to "Three Questions for Creating Web3 Brand Soul: Why, What, How?" Author: Star ™; s Decentralized Brief ）
Here are some specific cases.
Andy Nguyen, the owner of the restaurant, spent nearly 387000 dollars to buy a boring ape and two mutant apes to decorate the hamburger box, fried rack and drink cup of the restaurant, and opened the world's first "boring ape" themed restaurant Bored& amp; Hungry。 Originally intended to be a flash shop for a few months, it has become a long-term business shop because of its hot business.
The employees of Kley, a studio in Los Angeles, love coffee. Some employees happen to hold the NFT of Bored Apes, so they created the "Bored Breakfast Club" to provide coffee subscription services to fans through the "Bored Apes" IP. This project also has a very interesting way of playing. They have sold 5000 copies of NFT for breakfast scenes of boring ape characters, and consumers who buy NFT will automatically get coffee subscription membership. Ordinary consumers can order coffee beans and peripheral products on the official website, but only NFT holders can receive coffee beans regularly (subscription service) and purchase specially customized coffee products.
c. Create NFT version of physical product
Create separate NFT sales based on physical products
Case reference: As the first fashion brand to release its own NFT, Gucci launched NFT, a fashion film inspired by Aria series, at the time of its centenary. The starting price was $2000, and the final transaction price was $25000, more than 10 times the starting price.
Second innovation NFT sales based on physical products
Here's a thought:
Many traditional brands have actually made many product iterations, such as Coca Cola has produced many versions of bottle design. These past designs bear not only the value of the brand, but also the users' feelings for time and regional life.
Brands can design and create these past physical products into NFT for sale, so that users can use NFT to retain the goods that once disappeared in time.
d. Use NFT as physical exchange certificate
In traditional marketing, "Mid Autumn Moon Cake Coupon" and "Yangcheng Lake Hairy Crab Exchange Coupon" are sold every year. Brands can also refer to similar methods to use NFT as the physical exchange coupon in the future.
Patr ó n is a high-end tequila brand owned by Bacardi. In January 2022, Patr ó n launched its first NFT. Each NFT corresponds to a rare Chairman's Reserve liquor - only 150 bottles in total, and NFT owners have the right to redeem the corresponding Tequila liquor at any time. The corresponding price of each NFT is 1.5 ETH (equivalent to about 4500 dollars). These physical tequila wines are stored in a secret location in Singapore, and are subject to 7x24 hours of security, external movement detection and temperature control.
This NFT sales method can actually be applied to all goods with high exchange value: wine, tea, gold ornaments, etc. For domestic traditional old brands, such as Maotai, Chow Tai Fook, etc., you may refer to this method to do a wave of marketing to refresh the brand.
To sum up, when NFT becomes a carrier and brands can endow various entities with rights and interests through NFT, in fact, people can completely abandon NFT and open their imagination. Whether restaurants issue NFT to grant rights and interests to reserved places, music festivals issue NFT to grant rights and interests to VIP stands, or hold NFT to join senior members and meet the founder face to face... NFT is available, and the rest depends on the brand owners themselves.
3) NFT as a member pass card
Brands can use NFT as an incentive portal for members - owning NFT can enjoy exclusive physical rights and interests.
Give more membership rights to NFT - you may ask, isn't this just a change of the point system? However, when the traditional membership system has become a boring way to exchange points for money, and it seems that there are not so many benefits, people have become less and less concerned about the so-called brand members - NFT pass card may be an opportunity to re attract everyone's attention to member rights.
Starbucks basically operates in a similar way.
In recent two days, Starbucks announced its Starbucks Odyssey plan. Starbucks sets a rare point value for each NFT, which can be traded in Starbucks' own market. Benefits/experiences include: virtual espresso martini making course; Starbucks Reserve Roasters; Costa Rica Starbucks Coffee Farm Tour, etc.
At the same time, in order to reduce the learning cost of the ordinary audience on the chain operation, Starbucks allows users to use legal tender to directly trade NFT in its market.
We also observed that compared with the original way of members exchanging points for discounts, the rights and interests of brand NFT look more unique, rich and high-end - for similar operations, we can refer to Prada's case:
Prada launched the new Timecapsule NFT series, which will provide unique activities and experiences for Timecapsule holders in the "Prada Crypted" District community, such as participating in the Prada Show in Milan, and getting an exclusive invitation to participate in the brand fashion show in September.
In addition, brands can also set different levels of NFT rights and interests in terms of specific playing methods, which is no essential difference from the past platinum card and silver card.
So can all the original membership brands be converted to NFT like Starbucks?
We feel it is necessary.
We can refer to Star ™ for this; S Decentralized Brief
Conversion of membership card to NFT has the following advantages, including three user side and one brand side:
- User perspective 1: enhancing rights and interests
As a web3 brand, users are investors, and member clubs must guarantee high-quality rights and interests consistent with users' interests; The active participation of users is also promoting the brand value, forming a win-win situation.
- User perspective 2: enhance the transaction liquidity and value of membership cards
Traditional membership cards are difficult to trade secondhand. After becoming NFT, it will bring natural trading market and liquidity, thus enhancing the asset value of the membership card itself.
- User perspective 3: obtaining personalized identity
Embodies a unique digital identity to show your personality and as a passport to metaverse. Membership cards are not necessarily static. Delicately designed traits can grow with users and have special effects to increase user stickiness.
- Brand perspective: expand the depth and breadth of users
Based on the data and behavior on the chain, on the one hand, it is more comprehensive to understand the stock users (User A holds 5 NFTs), and on the other hand, it is easier to reach incremental users (users in a certain community are especially suitable for this brand).
In the way of NFT as a member pass card, there is still a lot of room for imagination, including the use of poap to record consumers' participation in activities, PFP avatars to let consumers do personalized displays, show identity, and so on.
At the moment, perhaps what we should explore is how to make the membership system have a smooth experience after being linked, and let NFT play more tricks as a membership card within the scope of the policy.
4) NFT+games create more playing methods for brands
NFT+games are also a good idea. Whether the brand makes its own games, formulates rules of the game, or creates brand areas in the existing virtual game community, it is a way to expand more playing methods.
Gucci cooperated with the game platform Roblox to create a permanent virtual world "Gucci Town" on Roblox. Although the opening time is only two weeks, Gucci Garden has more than 20 million visitors.
The Gucci store in the town sells clothes, including tops, skirts, sweatshirts, jackets, etc. After the game players buy and wear them, they can achieve the same wearing effect as the reality. In addition to buying clothes, the experience of the game itself is rich enough: visitors can earn double G gemstones through the competition, create works of art, and learn the historical heritage and handicrafts of the brand. When participating in activities in Gucci Town, visitors can also use the currency in the town to buy props and Gucci clothes.
5) NFT secondary empowerment - cultivate brand loyalty
In this regard, we can refer to the original play method of NFT:
BAYC Boring Ape dropped Ape tokens for NFT holders, and Azuki dropped two Something NFTs to NFT holders. These two air drops have brought great benefits to NFT holders, and at the same time, NFT itself has gained a high reputation.
In fact, brands can also refer to this kind of secondary empowerment. After NFT sales, consumers with brand NFT can get the benefits of the second stage that were not promised before.
Create more benefits for consumers with NFT and cultivate brand loyalty with secondary empowerment; It is also used to create topics for the brand.
6) Use NFT to build brand community
The social media of the Internet has created a two-way communication channel for brands and consumers, and NFT community style brand communities may become the next wave of new communication channels.
Brands can build online brand communities through NFT.
a. For communication
NFT community actually has better and more natural communication attributes. Brands can build new communication channels through NFT, and build their own new camps and communities through NFT.
This may be more perceptive if you have played in the Discord community of NFT or NFT projects with consensus in China. These communities, built on their own consensus and love, will be more active, and tap water flow and spontaneous communication within the community will be more abundant. Compared with the traditional WeChat public account/microblog/small red book/traditional advertisement, these communities have higher participation, no longer "I say", but "everyone says". By analogy with foreign platforms, compared with traditional corporate communication social media platforms (such as Facebook/YouTube), Decord, Reddit or Telegram greatly improve the interactivity of communication.
This NFT style community opens a playability for the brand. For example, the NFT community often holds AMA activities/meme expression creation and so on.
NFT community can be an amplifier of brand marketing.
Time Weekly is a very typical example. They have established an independent Web3 department to operate the community in the way of "community+values+culture first".
The operation of Time Weekly has achieved initial success. Their discord is very active. They hold daily games, challenges and even private rooms for NFT holders on the discord to show the brand to Generation Z readers.
b. Create brand stories
The brand can use the NFT community to enable community members to carry out second innovation around the brand image or brand story.
It is a common practice in traditional NFT communities to unfold stories/construct world views for NFT avatars or characters based on NFT.
Brands can change from writing stories themselves in the past to letting consumers build stories together in the community.
For example, build a framework in the community, and the brand official will announce activities with different chapters and themes: each chapter has different play methods, or stories written by consumers, or treasure hunting, or cosplay of the brand image; Let consumers get some physical or virtual rewards while doing tap water content.
Similar activities may be seen in traditional brand marketing. However, NFT community has its own community culture, which may allow consumers to participate naturally or have motivation to join. Secondly, although the number of active users in the NFT community is still less than that of more traditional social media platforms, they have shown a higher participation rate in the community, which also makes it possible for brands to co build.
c. Greater imagination - brand DAO
DAO may still have some barriers for those unfamiliar with Web3, but it has become a very popular concept since the end of last year.
(Market map of the DAO pattern in 2021)
DAO is a decentralized autonomous organization, a new collaborative organization. We can simply understand it as a form of community upgrading, but compared with a community, DAO has a clearer cultural identity and spiritual core, and more technical means and governance methods to enable people in the community to work together and create value.
This new concept may also be an opportunity for brands. If the brand can finally operate its community in the form of a DAO, the brand may gain more self-sufficient followers, and these brand followers will work with the brand to create a win-win situation.
NFT marketing, it's time to take action
At present, we see that many brands have tried some NFT marketing methods. However, we have to say that after studying many cases at home and abroad, we can see that most brands still think about how to use the heat of NFT to hype up a wave, and treat NFT as a marketing event, without in-depth understanding of the logic and culture of Web3.
However, we believe that it is time for brands to make long-term planning and in-depth research on NFT and Web3. NFT marketing must not be a one shot deal. The new world of Web3 needs brand people to look at it in a more long-term perspective.
Just like the article "Ten thousand words long article: How does Web3 and brand promote the next bull market?" It says:
"Today's Web3+brand, just like the attack of e-commerce on traditional entities in those years, does not mean the disappearance of traditional brands, but will become a new brand industry model. Today's e-commerce has captured the market share of traditional retail more than ten years ago. Web3+brand will seize more than the market share of traditional brands. Thanks to the developed Internet to build network infrastructure, this brand revolution cycle of Web3+brand It will not take as long as 10 years. It may take only a few years to complete the shaping of the market pattern. "
Therefore, there are two suggestions for the brand layout in NFT/Web3:
- Long term strategy
Brands need to gradually deepen their understanding of Web3 culture, and develop long-term Web3 strategy based on in-depth understanding.
- Long term education
Brand decision-makers need to carry out long-term Web3 education from top to bottom within the team, so that decision-makers can understand the importance of Web3 strategy, and each brand person involved in different links such as strategy, creativity, design can gradually have knowledge and understanding of Web3, and can play with Web3.