Brands are constantly seeking new and creative ways of reaching out to customers. NFTs are an important tool for companies to increase their marketing efforts and to improve their existing marketing strategies.
Discussions about the use of NFTs from the physical world in marketing for brands have been slowly gaining an abundance of media attention. Brands can achieve multiple objectives with the strategies they employ to market themselves, but the most important of which is to increase awareness of their brand among consumers.
What is Phygital NFTs?
The term phygital is made up of two words: Physical as well as Digital. Therefore, the term Phygital NFT can be described as a type of digital token that is actually supported by physical items.
The year 2021 was the first time we watched Tacobell make use of phygital NFTs to promote their products in the Phygital NFT marketplace and even beyond. Taco Bell minted and sold 25 NFTs featuring tacos valued at $1.79 (0.001 Ethereum).
The NFTs were sold out within a one hour after launch. NFT purchasers received the NFTs for free Taco Bell for one year. Within a year one of these Taco Bell NFTs sold for over $180K.
- In simple terms, A phygital NFT should:
- Provide a digital asset customer can purchase.
- Provide a tangible item that is backed by an online asset.
How Can Brands Capitalize on Phygital NFTs?
Here are some ways that companies can benefit from opportunities offered by Phygital experiences.
Many businesses, including the biggest ones are taking the initiative to incorporate Phygital experiences as part of their marketing strategies. In peak seasons as in addition to beyond retailers could make use of online video-based shopping.
Thus, retailers can ensure customers get the experience of shopping in-store from their sofas in their living rooms.
The second industry you may consider looking into prior to looking for an Phygital NFT market would be the auto industry. Automobile companies make use of live one-on-one video calls to incorporate Phygital experiences into their business.
For instance, the Phygital component can aid in improving the personalization of customer experiences to provide benefit-based value. In turn, automotive companies stand a better chance of boosting sales online for their cars.
3: Real Estate
Another area of potential to invest in Phygital non-fungible tokens is to round into the property industry.
Real estate companies could capitalize on the advantages of individualization as well as control over ownership and authenticity by using Phygital NFTs.
The use by Phygital NFT marketing can play an important role in increasing the trust of the customers in the models of business and properties that are listed by real estate agencies.
Benefits of Using Phygital NFTs in Marketing
1: Brand Collaboration
NFT tokens are among the top choices of brands to create brand awareness, supporting charitable causes, generating new revenue streams, and growing in loyalty to customers.
It is interesting to note that the opportunities are good for Phygital NFT marketing are centered around the cooperation of brands that have the most popular collections of NFT.
The collaboration could help most renowned brands reach a larger public and build stronger connections with their existing customers. A few of the most well-known examples of this type of collaboration are Gucci as well as Superplastic, GAP and Frank Ape and Adidas and Bored Ape.
These types of collaborations lead brands to new avenues for creating wealth, while also the launch of new and unique collectibles. Brands who collaborate with NFT collections demonstrate their ability to adapt to technological trends.
In addition, there is no need to think about the need to add separate technology tracking the growth of your business as smart contracts perform the heavy lifting.
2: Limited Edition Products
The advantages of the Phygital marketplace of NFT for the marketing strategy of a company are also focused specifically on the limited editions. What’s special in limited edition items?
This is the answer to the need to create an aura in the sense of exclusivity as well as urgency with regards to the distinctive features of the product. Customers aren’t going to want to miss out the limited edition items since they could sell the items on secondary markets or get ownership of an exclusive asset.
However you can also release limited edition items as Phygital NFTs in order to benefit from the advantages of a higher resale value, as well as the amount of royalties paid.
However these limited edition products are often linked to scarcity, thus giving you the opportunity to sell more.
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3: Pre-sale NFTs
The fascinating use cases for physical NFTs in marketing could be a good indication of pre-sales NFTs. The idea of putting up physical NFTs for sale in advance could be beneficial crowdfunding projects.
Brands can offer NFTs of a product that is in development, thus helping to raise the financial resources required to help develop the product. However, NFT owners could receive early access to project offerings, and also the possibility of successful development.
For instance, a wildly popular crowd-funded short film for adults, Stoner Cats, uses NFTs purchased before sale to create exclusive content.
4: Broader Audience
The increasing use of cryptocurrency and NFTs by younger generations i.e. Gen-Z, Gen-X and millennials is a positive sign that NFTs are being used more widely.
Phygital NFTs. With the aid of NFTs companies can stand greater opportunities of selling their goods to a younger demographic. Additionally, NFTs could effortlessly open up businesses to a greater number of targeted audiences.
For instance, Block bar shows how an Phygital NFT marketplace can work effectively to sell liquor. Traditional liquor stores as well as the modern NFTs offer a viable instrument used by premium labels to connect with a new public.
How to Use Phygital NFTs in Marketing?
1: Event Ticketing
The most frequent use for Phygital NFTs is in the field of brand marketing. will be to draw attention to event ticketing. Non-fungible tokens could be used as digital tickets to physical or virtual events and attract more people.
Mintbase is among the most popular platforms to mint digital currency and tickets made of NFTs. NFT tickets to an event can help reduce the carbon footprint of non-fungible tokens.
2: Develop Communities
The idea of decentralized technologies is primarily about creating communities. NFT communities are built around shared interests. A number of Phygital NFT applications in marketing could allow owners to gain access to exclusive communities or clubs. In addition, the owners in Phygital NFT marketplaces could help to establish a discord-based community.
3: Product Traceability
The benefits that are made of Phygital NFT marketing are also used as an effective method to increase tracking products.
The information regarding Phygital NFTs is stored onto an encrypted blockchain which allows for better traceability of the products. NFTs help track every physical item individually and provide more accurate results when compared with serial numbers.
4: Community Incentives
If you are looking to create an assortment of Phygital NFTs to promote your brand Then you’ll require an organized community. NFT marketing services could assist to create an organization. However, Phygital NFTs can serve beneficial incentives to any community member who have long-term utility bills.
5: Integration with Products
Brands can also incorporate NFTs into their products to get the most of Phygital NFTs for marketing. Integrating Phygital NFTs alongside products could assist in preventing the risk of counterfeit or fake products.
This strategy is best with limited edition items such as collectibles, costly goods and collectibles.
The advantages of using Phygital NFTs in marketing of brands along with the top practices to use them for the same can help you better understand their capabilities.
The Phygital NFTs create a distinct connection between physical and virtual experiences, while also embracing a brand new category of assets.
non-fungible coins are regarded as an important element of the new digital economy and the ever-growing sales numbers of NFTs confirm this. The acceptance of Phygital’s NFTs in marketing is difficult for those who are new to the field.
But, a thorough understanding of the basic concepts associated with Phygital non-fungible tokens could aid you in your journey of learning. Learn a new view of the role of NFTs in marketing right now.