ARE NFTS THE NEXT THING FOR DIGITAL MARKETING IN CHINA?

NFTs (non-fungible tokens) have taken the world by storm and brands are clamoring in to see how they be used in marketing. From pairs of virtual sneakers to virtual paintings, NFTs are blockchain-dependent digital assets. Unlike other forms of virtual currency, NFTs cannot be exchanged for the same value because each NFT is unique and has a special identification code and metadata. Each NFT has an ID number that cannot be stolen, and because this code is different, its value is also different.

NFTs can be basically anything and everything in the real world, and have natural cross-border properties. More and more brands are starting to align with young and emerging artists to create a brand associations that aim to boost engagement and hook in younger audiences, both digitally and emotionally.

THREE KEY AREAS FOR BRAND BUILDING WITH NFTS

*Sold on Taobao, the “Little Alpaca SanSan” NFT was created by NetEase x Nervina Labs.*

NFTs have naturally caught the attention of brand marketers. Many well-known brands are already leveraging the interactive potential of NFTs. Here are a few key areas:

Mini-games: Brands are developing mini-games within social media platforms – integrating NFTs into content – as rewards for the audience. This can attract audience participation and create social engagement that stimulates audience discussion and fuels brand interest.

Charity: Brands are using NFTs to do social charity work by releasing original NFT artworks and donating the proceeds to charity. For example, in May 2021 GUCCI released their first NFT short film via online auction, and donated US$25,000 from the auction to charity.

Collaboration: Cross-brand collaborations can release NFT collectibles to interact with mass consumers. Similar to a physical product for brand collaboration, brands can release creative and unique NFT virtual items that inspire curiosity and engagement among mass consumers.