eCommerce

NFT in Marketing: Art and Price Gains in the Metaverse

Not nuggets, but NFTs are the currency of the new virtual world. The latest craze comes from Adidas and Prada: 3,000 users and their photos become part of such a digital object, known as a “non-fungible token”. Anyone who registers on the waiting list by 2:00 p.m. today, Tuesday, January 25, has at least a small chance of participating. Guest author Bernhard Haas, Managing Director of the Bitfuel agency, explains why Adidas and Prada are pushing ahead and what retailers and manufacturers need to know about the new form of the customer journey.

Early adopters in the field of online marketing will know NFTs and may have created them themselves or bought them at auction: The non-fungible tokens are digital, non-duplicate individual pieces that are currently making their way into pop culture with power – and more or less through gangs into the real world of trading. In marketing in particular, one spectacular NFT drop is chasing the other, ie the launch of a new, self-contained collection of NFTs.

A few international brands stand out in particular. They rely on an innovative brand experience and new user experiences. The use of non-fungible tokens is particularly interesting for online trading when they serve as tickets for highly exclusive customer journeys.

In order to understand and take advantage of this approach, the following six insights are valuable. They come from Adidas’ NFT drop “Into The Metaverse” – only about a month ago, but already a milestone in terms of innovative digital customer loyalty and activation.

© B. Haas

Etailment.de guest author Bernhard Haas, managing director of the Bitfuel agency

First insight: NFT as “entry ticket”
The sportswear manufacturer deliberately did not release an NFT at the end of 2021 that you can own as such. Rather, it is an NFT badge, a kind of ticket or ID card, which in this case entitles you to participate in a loyalty journey in the Adidas brand universe. In 2022, holders of the badge or token will have a total of four exclusive opportunities to participate in an online product sale.

“Sale” is the wrong word here, since the virtual and non-virtual “goods” are in fact being given away or bartered. This NFT bagde originally launched at a price of 0.2 Ethereums (ETH), but is now trading at around 1.1 ETH, so it has more than quintupled in less than six weeks. In turn, 1 ETH, the most important cryptocurrency after Bitcoin, currently costs around $2,000. For those interested: The “cryptos” can be bought relatively easily on exchanges such as Justtrade or Binance, the NFT after the initial drop usually on special secondary marketplaces, in the case of “Into the Metaverse” on Opensea.io

Second Insight: Crypto wallet for verification
From a user perspective, the way to receive the products will be through the use of a crypto wallet, a type of electronic wallet. With the wallet you will be able to register as a user on the Adidas website and verify yourself as a token holder. The NFT “Into The Metaverse” is recognized as a token by the website and access to the product and ordering process is granted. The token is limited to 30,000 pieces. So 30,000 NFT owners worldwide will enter their shipping data for a highly limited Adidas product.

third Insight: Product drop as a journey
Adidas is expected to launch four physical products via the NFT journey in 2022. According to fashion magazine GQ, there will be a Firebird tracksuit, track top and pants by Indigo Herz and Courtney, a graphic hoodie and one of GMoney’s classic orange beanies. From the customer’s point of view, therefore, highly coveted items, strictly limited and with high potential for value growth.

Fourth Insight: Metaverse as a journey extension
WAGMI… “We’re all gonna make it,” Adidas tweeted, alluding to the fact that the Into The Metaverse token will also give access to Adidas’ “mysterious plot of land” on Sandbox. So the possibility, Adidas in the Metaverse, because Sandbox is a popular play-to-earn online game that is being discovered by brands and celebrities to interact with users in the digital space.

Currently the game Sandbox is not “playable” and is in the development phase. The game’s alpha phase was a resounding success and was only available to an exclusive audience for a short time. The beta phase is about to start, and it is possible that the Into The Metaverse NFT on your wallet will then give you exclusive access to the game Sandbox.

Fifth insight: Twitter and Discord for journey control
From a branded article point of view, the use of NFTs in marketing does not end with the dispatch of a product. Rather, it is about sending users on a unique and exclusive journey. NFTs in the field of marketing thus enable the design of a completely new brand experience that integrates and involves users and activates them again and again.

Discord and Twitter are usually used as control tools from the broadcaster’s perspective. Discord is a messenger and community service that is particularly popular with gamers. Among other things, Adidas uses him to inform the token holders about the upcoming product drops and other advantages that are offered to token holders. Questions are answered and participation in voting is encouraged via the community.

Sixth Insight: Never ending journey and timeliness
The customer journey through the Metaverse must not end: the next NFT collaboration is already here, this time between Adidas and Prada. The two brands, together with digital artist Zach Lieberman, are releasing an NFT in which users participate in token design.

The label name “Re-source” is based on the existing Adidas x Prada clothing line called “Re-Nylon”. The special thing is that the 3,000 participants can upload a photo and thus contribute part of the NFT. As co-owners of the token, they will also participate in the share proceeds from the NFT sale on the Superrare.com marketplace. This results in user integration and participation at the highest level, right down to rights ownership and revenue participation.

You can theoretically register until Tuesday (January 25, 2022) at 2:00 p.m www.adidas.com/prada-nft put on the waiting list. The highlight: 1,000 of the coveted places were reserved for owners of the NFT “Into The Metaworse”. The auction of the co-created NFT will take place on January 26th.

What do we learn from these insights? Being actively involved can be worthwhile as a user, from a creative and also from a financial point of view. However, simply observing the current NFT hype makes sense for marketers and sales specialists. Because the modern marketing principles “play-to-earn” or “engage-to-earn” are used at NFT-

© B. Haas

Etailment.de guest author Bernhard Haas, managing director of the Bitfuel agency

based Journeys implemented in an exciting and often successful way. All promoted by the use of an innovative technology. But designed by creative people.



Reference-etailment.de

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