What NFTs Can Teach Brands About the Future of Marketing

NFT’s are a polarizing topic these days. While some see them as the holy grail of digital, others have written them off as modern day Beanie Babies whose fifteen minutes are up. The one thing we can all agree on is that the metaverse, and the rise of cryptocurrency are ushering in a new, immersive version of the internet that is changing how brands market, engage and transact. NFTs are just one part of this much bigger evolution.

With an accelerated push from the pandemic, our real lives are increasingly blending with our virtual selves as we spend more time and money than ever in shared digital spaces. This “dematerialization of consumption” marks a prolific shift in human behavior that ascribes tangible value to intangible things. While our drive to own things remains stronger than ever, those things no longer need to be physical to hold significant value. This is the whitespace that future-focused brands need to understand, using NFTs as the proxy. While it’s easy to scoff at some early-stage NFT ideas, the smarter move is to study what works, experiment, and innovate ahead of the competition. Brands like Mattel, e.l.f. Cosmetics and Stella Artois are exploring the space to great effect, pointing to an inspiring and engaging near-future.

Mattel is launching three NFTs for auction on its Mattel Creations website as a part of its Hot Wheels NFT Garage Series. These original designs represent classic Hot Wheels cars from its archive that have an active fan base, and therefore a built in audience to drive up bidding (set to start at 99 cents) which participants can pay for using Ethereum. The move is likely to be successful for Mattel as it leverages the rise in popularity of toys as collectible art, plays into nostalgia and targets men who (demographically) are using cryptocurrencies significantly more than women. The company said it was also planning NFT auctions for its other toy brands as they create “a new way for innovation and artistry to converge in the toy space.”

e.l.f. is leaning into the collectible aspect of NFTs through their #CryptoCosmetics Collection. The campaign features digital animations of their three hero products: Poreless Putty Primer, 16HR Camo Concealer, and Ride or Die Lip Balm – all dipped in (virtual) gold and dubbed “Ne.l.f.Ts.” Surprisingly the brand only released a total of nine NFTs (3 per product). Priced the same as their physical counterparts, all sold out immediately. Buyers could purchase the NFTs using a credit card or cryptocurrency and were provided with a certificate of authenticity and ownership, giving what the brand calls “bragging rights” for “years to come.” While the effort drove word-of-mouth through earned media and paid influencer posts across social, the real value will be in understanding how (and if) larger scale releases in the future can drive new revenue streams and deepen brand equity through associating special perks with token purchases.

Stella Artois has taken the notion of entering the NFT race quite literally having recently entered into a partnership with digital horse racing platform Zed Run. After a virtual Kentucky Derby replaced the real thing at the height of the pandemic in 2020, interest in the metaverse-based platform soared. Called “Racing in the Life Artois,” the initiative ties into the brand’s reputation for producing memorable, premium experiences that bring people together.

Bidders were invited to compete for one of 50 Genesis digital racehorse NFTs which sold at a rate of 10 horses per day – at times exceeding $36k each. Winners received a collection of assets including three NFTs, one NFT Stella Artois piece of art, one Genesis racehorse NFT and one branded skin with a total of five collectible skins released in total. What’s so compelling here is that winners can go on to race, breed and sell their horses over time, potentially generating considerable revenue along with a deep and unique connection to the brand.

EPISODE 2
Where Culture is Headed: Featuring Frankie Jonas

In this episode, we talk with TikTok star, Gen Z influencer, and 4th Jonas brother Frankie Jonas about where he thinks culture is headed and his advice to brands looking to connect with Gen Z.

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In collaboration with Advertising Week, we invite you to listen to Kids In Control where we explore the world of Gen-Z culture through the lens of its most prolific thought leaders. 

Created for future-forward marketing professionals, this series taps into the Gen Z mindset that is changing how we work, play, shop and socialize. From brand loyalty and influencer marketing to social media and social justice, Kids In Control provides insights from the changemakers themselves through candid conversations.

This article originally appeared in the June 22nd, 2021 issue of Moving Image & Content’s agency newsletter. Subscribe here.