5 ways to use NFTs in your marketing campaigns

Non-fungible tokens are used in amazing ways in music marketing. Marketers should pay attention to the great use cases of NFT, says Emile Engerfallone of the founders koret.

In recent times, the blockchain, cryptocurrencies, NFTs, and the “metaverse” have all become a part of popular culture. Today, global brands such as Meta, TIME, Mastercard, Samsung and Louis Vuitton, offer NFT with the hope that adoption of this technology will continue to accelerate.

For its part, the music industry is adopting non-fungible tokens at an especially high rate. More and more artists are using this technology and creating new ways to connect with their fans.

However, investors are not aware of the full range of services offered by the projects in which they invest. Investing money in NFTs might be a good idea, but in order to be successful in the long run, you need real interest and value. However, few people compare the project with its competitors, try to determine its uniqueness, investigate the company’s activity, or even less so, figure out how to calculate the results of their marketing campaigns.

In this article based on my own experience and observations, I would like to talk about use cases of NFT that have not yet received enough attention despite their great potential. These tools can help companies transform their audience into a personalized community while attracting the attention of new investors.

1. Use NFTs as physical event tickets

The ticket industry is currently facing enormous challenges including counterfeiting, scammers, large-scale fraud and most importantly, fragmentation. When a major platform offers a ticket, it can be bought and sold multiple times in the secondary market. The use of NFT tickets can play a major role in solving many of these issues.

So fans won’t have a simple ticket to throw away later, but rather a digital asset with real value. The Mola Chill Club, which was the first event sold out entirely with NFT tickets, is a great example of what this approach can look like in practice. The project designed NFTs that allow members to access exclusive music shows anywhere in the world. Some of the group’s tokens provided surprises such as meeting and greeting artists, access to the backstage, and round trips to the first event.

Another example is Coachella Collectibles, a joint venture between FTX and Coachella. The project provides unique opportunities for fans, including permanent access, meetings with artists, etc. Sweden Way Out West (WOW) festival is currently working on a similar group. This will be an exclusive collection of NFT footage captured by festival-goers.

The increasing reliance on NFT tickets by large-scale events shows that organizers have realized that new technologies offer them opportunities to stand out and attract people’s attention.

2. Digital collectibles

Creating a digital art collection can also be a great idea. Provided that your product has a story and the launch takes place at the right time. To give you an example, in 2017, the CryptoKitties group attracted 15% of the Ethereum network traffic. However, due to the large number of users, this game was difficult to play, regular transactions, such as buying and selling NFTs, took longer than usual and required several attempts. This network congestion hasn’t hurt the reputation of popular NFTs. On the contrary, the project has been lauded by some of the most influential figures in the crypto field.

In the field of music, a song, album, or even a music video can become a collectible or an asset. Musicians have discovered that NFT technology allows them to communicate directly with their fans and create token copies of their work.

Fans and artists can work together on charitable projects, such as what Grimes did when they released their WarNymph collection. The Canadian singer earned $5.8 million by selling a collection of 10 exclusive digital artworks, some of which accompanied her original songs. A portion of the proceeds from the sale of the WarNymph collection was donated to Carbon 180, a non-profit organization that aims to reduce carbon emissions.

In fact, there are a lot of people who like to buy artwork, books, stamps, etc. This means that collecting NFTs can become a new hobby for them. These collectors are willing to spend money on things that carry their story. In order to reach this audience, projects just need to create NFT groups with real and consistent stories.

3. Virtual events

Bringing people together in the same physical space is not always possible. This is why virtual and hybrid events have become more frequent in recent years. Virtual meetings and concerts not only help event organizers grow their audience and promote inclusivity, but can also be an effective way to increase revenue and collect important audience data. Despite these advantages, many organizers still do not know how to organize online events or add virtual components to their physical events.

Today, the term “metaverse” is on everyone’s lips, yet many people still don’t know what that means. Simply put, the metaverse is a virtual space where users can interact with each other in a computer generated environment.

The music industry was one of the first to see the potential of virtual events, especially after the onset of the pandemic. Online events are important because they allow artists to reach hundreds of thousands of fans without being restricted by geography or location. Admittedly, the virtual world may not completely replace the real world. However, several stars, including Marshmello, Ariana Grande and Travis Scott, have already had major success in the metaverse.

In fact, virtual events are particularly attractive to people who live far from major cities and who have to travel long distances to attend physical events. With virtual events growing in popularity, they are also improving the end user experience.

The integration of virtual reality, artificial intelligence, NFTs, holograms, 3D graphics, digital pairing, and cryptocurrency allows participants to feel as if they are “really present” at the event. I expect this trend to continue over the next decade, and virtual concerts will be the norm rather than a novelty.

4. NFTs and Gamification

I like the idea of ​​integrating gaming into the business through NFT groups. The most attractive aspect for users is the simplicity: just buy NFT and keep it to enjoy the exclusive benefits. What makes using such a product so interesting? People love to play games, and the gaming element that characterizes NFT grabs the user’s attention, immerses them deeper into your product and sets you apart from your competition.

You don’t need to create a full game. Sometimes it is enough to let people create their own NFTs. German DJ BOYS NOIZE, better known as Alex Sidha, a dance giant, has already tested this method. His “Rave Pigs” collection consists of 6,666 customizable NFTs from Berlin’s underground electronic music scene. Each of these characters combines 129 traits across 10 visual categories and five audio layers, allowing for up to 50 trillion combinations to be created. Each NFT includes both a digital image and a music clip, the rights of which belong to its holder.

Creating games based on NFT can make them more valuable. Axie Infinity, for example, allows people to “play” with NFTs by breeding and upgrading Axies and buying virtual land. By turning NFTs into games, Axie Infinity has become the largest Play to Earn platform in the world, with a market capitalization of over $3 billion and a daily trading volume of over $150 million.

5. NFT, Marketing and Crowdfunding

Finally, I’d like to talk about crowdfunding and fan power, which I think benefits both creators and audiences. This mechanism is triggered when artists decide to fund their albums with the help of a community that believes in their success, rather than turning to production roles. In return, fans get a portion of the broadcast and valuable NFT earnings, such as an audio copy of a song or music video.

Artists receive instant cash that helps cover production and marketing costs, without sacrificing ownership of their music. On the other hand, investors give money to artists who believe they have a chance of success, hoping to share in their success.

The Unity campaign By Alan Walker, who was allowed to raise $25,000 in just a few days, demonstrates exactly how this model works. It is possible that the goal of broadcasting the song will be reached sooner than expected. Inspired by this success, another much larger campaign was launched for the same artist’s album Origin. This crowdfunding model could also be improved. An artist can, for example, give fans missions and then reward them with airdrops and other benefits.

Ultimately, artists have communities that value them and invest in their success. Users do not bet, because they know that if the artist becomes famous, the value of his shares will increase. The growth of musical NFTs will depend on the work and reputation of musicians.

Marketing and the importance of audience involvement

Adopting blockchain and NFTs may seem challenging for traditional companies trying to scale their commercialization. However, like any other technology, its deployment and use by end customers will become easier when adopted.

I encourage everyone to get out of their comfort zone and become an “early adopter”. The world is changing and people (especially young people) want to look for new experiences and opportunities. Brands that jump into the NFT space early will be in a better position to take advantage of it in the future.

About the author

Emil Angervall is the co-founder of Corite, a blockchain-based digital music distribution company. The platform streams music to multiple streaming services, including Spotify, Apple Music, Pandora, and TIDAL.

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