As more industries integrate NFTs and Web3 services as part of their products, brands are starting to notice the benefits of having an NFT marketplace.
White label NFT services have grown in popularity, with many big companies developing their own NFT marketplace through them or investing in existing NFT marketplaces to profit from their sales.
NFTs were the buzzword of 2021, and even despite the crypto meltdown of 2022, they are growing in popularity as people get used to them and employ them for their projects.
How can brands harness the power of NFTs?
What is an NFT marketplace?
An NFT marketplace is the platform where NFTs are bought and sold. In an NFT marketplace, users can navigate through NFT collections.
The top-selling NFT marketplace is OpenSea, but every couple of weeks, new marketplaces are launched to the public.
In the last few months, companies have begun developing their NFT marketplaces to harness the benefits of being actively part of the NFT space.
Binance and Coinbase are two examples of companies that were already part of the crypto space and launched their NFT marketplaces: Binance NFT and Coinbase NFT, respectively.
Binance and Coinbase are cryptocurrency exchanges where users can exchange their fiat money for cryptocurrencies.
They benefit from integrating NFTs and cryptocurrency exchanges in one business, thus allowing for a seamless combination of their services.
Binance even created Binance Smart Chain (BSC), a solution that introduces interoperability and programmability on Binance Chain, which uses Proof of Staked Authority (PoSA).
Most NFT marketplaces require you to purchase crypto and have a working crypto wallet to fulfill their transactions.
Both crypto exchanges already provide you with the service of selling you the cryptocurrencies you need, meaning they greatly benefit from having their own NFT marketplace.
It brings them exposure, as NFT traders who stumble upon their NFT collections and wish to purchase them will get to know their cryptocurrency exchange services.
What big brands are investing in their own NFT marketplace?
Brands that penetrate the market through promotional materials will have a better chance of evolving into the Metaverse. Customers who see them already into NFTs will subconsciously associate them with Web3.
Fashion brands know this aspect of Web3 branding the most, which is why practically all of them have released an NFT collection, created a Metaverse experience, or collaborated with an existing NFT marketplace to drop their NFTs.
Even important sports events like Wimbledon are being incorporated with the Metaverse. American Express virtualized Wimbledon’s Hill in a Metaverse experience during June-July 2022 as a way for people to visit the iconic spot from the comfort of their homes and watch the games as they happened.
Gucci and Louis Vuitton have created brand experiences inside the Metaverse and used both occasions to increase brand awareness and motivate interaction.
That’s because they need to be the first into NFTs and the Metaverse or risk being forgotten.
Fast-food chains have also embraced food NFTs in creative ways. This increases brand credibility and innovation, as companies are seen as stepping into the future instead of remaining in the past.
NFTs are digital assets that can represent art, audio, and video. Still, the Blockchain technology they use can also be leveraged for marketing purposes, such as NFT airdrops used for marketing campaigns.
Most importantly, NFTs have opened the door for stronger brand storytelling.
NFTs generate buzz for brands.
Brands can use NFTs to create buzz around ownership of the assets. The resale aspect of NFTs can be leveraged by brands and even operated to further their charities or secondary goals.
For example, Taco Bell released an NFT collection, the Taco-llectables, on the Rarible NFT marketplace. It consisted of five specific NFTs, which they sold in five batches.
They marketed this idea on their Twitter, with the following tweet:
“Our Spicy Potato Soft Tacos can now love in your hearts, stomachs, and digital wallets.”
Their strategy was to receive 0.01% of future sales in resale value, and the proceeds would go to the Taco Bell Foundation.
NFTs offer participation for the customer.
NFTs are the seeds of enhancing virtual identities by allowing users to shape what they wear, where they live, and the things they do. They’ll use their digital wallets and possessions as a way to evolve what they own.
The end-user of NFTs is the customer. One of the benefits of NFTs is how they encourage a two-way channel between brand and customer, allowing them to participate in the brand’s story while also benefiting from its perks.
One such example is the CryptoKicks NFT collection developed by Nike, with many of them selling for several thousand, and one even reaching $130,000.
This allows Nike to tell a story with their virtual sneakers linked to a physical pair. The user can participate in the brand’s story by purchasing the sneakers and wearing them on their Metaverse avatar.
Why should brands invest in an NFT marketplace?
Most brands won’t invest in a full-blown NFT marketplace unless they can integrate their services directly into the marketplace. The Binance NFT & Coinbase NFT examples are excellent examples of how an existing service can leverage an NFT marketplace for profit.
If not, it might be better to use NFTs as branding strategies, as the Nike, American Express, Taco Bell, Gucci & Louis Vuitton examples did.
Final words about brands having their own NFT marketplace
Brands can benefit from the buzz around NFTs as a marketing strategy or implement the utilities of Blockchain technology in their products to enhance their services.
Cryptocurrency exchanges benefit the most from creating their NFT marketplaces. At the same time, companies in other industries will find better uses for them as a bridge to connect with the newer generations immersing themselves in Web3.
Learn more about What are NFTs and how you can benefit from them here.
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