NFTs, or non-fungible tokens, have already revolutionized the market, drawing many multinational brands to try their hands at tokenization of their products and services as virtual assets in the age of the digital era, where the task of marketing virtual and intangible products and services is keeping marketers on their toes. A popular term in 2021, NFTs have been purchased by numerous corporations, from renowned performance clothing manufacturer Nike to global beverage giant Coca-Cola, as well as by famous musicians like Marshal Mathers, better known as Eminem, who see the potential that this cutting-edge innovation is bringing.

So what exactly are NFTs, and why are businesses interested in using them to better market themselves? Non-Fungible Tokens, or NFTs, are distinct cryptographic tokens that exist on a blockchain network and cannot be copied. Tokenization of physical assets allows companies to manufacture, sell, or exchange them in a safe and efficient setting and removes the chance of fraud by representing real-world goods like art or limited-edition products.

While the majority of businesses are progressively using NFTs for marketing, each company has a unique goal in mind. Some see the possibility of marketing their limited-edition products as NFTs to create new revenue streams, while others utilise NFTs to collect money for social or environmental causes. Others use them to tell the brand narrative and connect with younger people in the metaverse.

How to utilise NFTS for marketing and charitable endeavours
It’s interesting to note that McDonald’s, a well-known fast-food franchise from the 1950s, has a reputation for bringing back past goods after discontinuing them for one reason or another. To further understand, Indians might recall how they used to enjoy potato wedges in the early 2000s, but that item was withdrawn and has just recently returned to McDonald’s locations in India. Similar to how McRib, a dish that is popular across the world, was long off the shelves, McDonald’s advertised its short-term return offer through NFT. The restaurant chain distributed a small number of MCNFTs to generate hype over the item’s brief reappearance. Since breaking the announcement, only individuals who shared the brand’s invitation tweet have had access to the collection of the 10 MCNFTs. By the beginning of 2022, it had received over 90,000 retweets, which is a staggering quantity.

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Brands are giving their consumers unique brand offer rights in the form of NFTs, taking gated premium offers to a new level. As an illustration, the large beverage company Anheuser-Busch hosted the #NFTBeerFest event at its main brewery and permitted entrance to certain NFT holders from its subsidiary firm, Budweiser. Budweiser Heritage Can or Royalty Collection NFT holders had free admission, entertainment, and other perks at the festival.

NFTs are an excellent method to sell virtual goods, but not limited to this. Decentraland, a metaverse platform, staged the first virtual fashion show in the metaverse. Luxury clothing companies like Dolce & Gabbana, Tommy Hilfiger, and Forever 21 were among the labels that took part in the immersive Fashion Week. The platform not only increased visitor engagement with the companies but also made it possible for guests to purchase NFT swag that was only available during the event.

Read More:- Are NFTs effective as a marketing tool for brands?