Creator Economy - NFT Playbook for the World's Top Brands
NFT Playbook for the World's Top BrandsWhy are traditional brands so into NFTs and how are they entering this space?
Dear subscribers, Crypto winter is here but don’t tell that to the world’s top brands. Over 60 brands have launched NFT projects this year. Just last week, Tiffany & Co raised $12M after selling 250 “NFTiffs” for 30 ETH ($50K) each. Let’s dive into:
Today’s post is brought to you by…Mintdrop Mintdrop makes it easy for you to launch NFTs for your brand. Ian, Mintdrop’s founder, worked on top NFT projects such as Moonbirds, Premint Collector Pass, and Admit One. With Mintdrop, you can:
Mintdrop is still in private beta but you can join the waitlist now. Why are brands so into NFTs?Brands, like creators, want to skip the middleman to build a direct relationship with customers. Brands are using NFTs to:
Which brands are launching NFTs?I made a spreadsheet that lists over 60 brands that have launched NFTs this year based on AdAge data. Here are some observations:
What’s the NFT playbook for brands?So what’s the playbook for traditional brands looking to get into NFTs? I think it comes down to five steps:
Let’s walk through these steps using Nike and Adidas NFTs as examples. 1. Identify the audienceConsider targeting NFT collectors in addition to your customers. Nike and Adidas targeted the following user segments with their NFTs:
2. Assemble the teamLook to partner with leading NFT projects and creators. Nike acquired RTFKT (pronounced “Artifact”) in December 2021 to bring on talent that already had a proven track record for digital sneaker and NFT drops.
Adidas partnered with Bored Ape Yacht Club (#1 NFT project), Gmoney (top NFT creator), and Punks Comics to launch their NFT collection. They bought a Bored Ape Indigo Herz and made it central to their marketing campaign. 3. Deliver the utilityKeep it mysterious - surprise and delight holders. For NFT holders, the expectation of utility is often more interesting than the actual utility. Let’s look at Nike (RTFKT)’s NFT drops as an example:
Compared to Nike, Adidas has been lagging in delivering utility:
4. Build the communityThis is perhaps the hardest step as it requires daily effort. RTFKT’s Discord server has 245K members. The team runs regular creator challenges where members are invited to design and sell NFTs (at 50% artist / RTFKT split). Adidas’s Discord server has 57K members. Although the server is actively managed, most of the updates have been around when the hoodie will ship. Ironically, when I joined either server, I immediately got DMs from scammers: 5. Commit to the long-termCommit to a long-term relationship vs. a single launch. Most NFT holders expect to build a long-term relationship with the brand. That means that the brand must build a community and provide utility over time. Both Nike (RTFKT) and Adidas are committed to their NFT projects. RTFKT in particular is building an entire ecosystem around Clone X (virtual sneakers, hoodies, spaces, etc). This is reflected in the relative volume and price of both collections: Let's recap the NFT playbook for brands:
It’s encouraging that the world’s most well-known brands are embracing NFTs despite the crypto downturn. I hope that more consider the playbook above to build a long-term relationship with their customers. As always, thanks for reading and leave your thoughts in the comments below. Further reading: If you liked this post from Creator Economy by Peter Yang, why not share it? |
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