Double Issue #11/12: Brands getting into NFTs
Double Issue #11/12: Brands getting into NFTs
A guide to pre and post launch
Reading time: 10.75 MinsAfter failing to post a newsletter last week (some stuff happened with my start-up that will be announced soon) I thought I’d come back this week with a double issue looking at brands getting into Web3 via NFT projects.
We’ll take this in two parts:
Why brands are getting involved and some of the results we have seen so far
How you can use data analysis to fine tune your own NFT campaign prior, during and post launch.
#11: Brands meet NFTs
In issue #9 we discussed the shift from NFT 1.0 to NFT2.0.
I pointed out a number of brands that had launched “successfully” (Starbucks Odyssey, NikeLand (RTFKT), Australian Open).
Unfortunately there are a number of brands that have failed infamously in the NFT space.
Famous brand NFT fails
There have been some pretty high profile brand NFT fails including Porche, Chevvy a whole range of creators (including massive artists like Snow Patrol and Chris Brown, as well as YouTubers and more)
If it smells like a cash grab… High prices = alarm bells
Troubles started when Porsche revealed the launch price of the NFTs. In a Jan 20 tweet, the company announced that the collection would sell for 0.911 ETH apiece. That equates to around $1,410 at current prices. Given the fact that NFT sales have dipped over the last few months, this asking price seemed extremely steep. As such, Crypto Twitter was quick to respond, with several users calling the collection "clueless" and labeling it a "cash grab". Some even proposed a more appropriate price of around 0.0911 ETH. ~ CNBC
Similar to the previous point - not focusing on your audience but selling to only crypto natives by excluding fiat holders
Let's be real; the only reason to sell an NFT exclusively in cryptocurrency - shows that the seller is a speculator or has been advised by bad actors to cash in on the speculative nature of Crypto Currency. ~ Clyde DeSouza via Realvision on the Corvette NFT drop
Lack of transparency: Back to Porche again now, when they launched no-one could work out what they were getting for their money as the communications from Porche were brief and vague at best.
Further reading:
So the question is how can older brands now entering the space get this right?
Step 1: Education
Many brands may not fully understand what an NFT is and what it entails.
It is essential to have a solid understanding of the technology and the market before launching an NFT campaign.
If a brand is looking to learn about NFTs, there are several resources available that can help them get started:
Research online: There are many online resources available that can provide an introduction to NFTs, including articles, blog posts, and videos. Brands can start by reading articles on reputable websites, such as CoinDesk, Cointelegraph, or Decrypt, to gain an understanding of what NFTs are and how they work.
Join NFT communities: Joining online communities, such as Discord or Telegram groups, can provide valuable insights and help brands learn from others in the NFT space. These communities often discuss the latest trends, upcoming projects, and share information on best practices.
Attend NFT events: Attending NFT events can be a great way to network with others in the industry, learn from experts, and gain a deeper understanding of NFTs. There are several NFT conferences and events held throughout the year, both in-person and online.
Partner with an NFT consultant: Working with an NFT consultant can provide a more personalized approach to learning about NFTs. A consultant can provide guidance on NFT strategy, help with NFT creation, and provide insight into the NFT market.
Overall, the key to learning about NFTs is to keep an open mind and be willing to learn. By leveraging the available resources and seeking out the advice of experts, brands can gain the knowledge and experience needed to succeed in the NFT space.
Step 2: Experiment
It is tempting at this point to go full degen (a compliment in crypto) and scope out a vision for an NFT powered metaverse.
However, it is best to approach this like a start-up/product manager would. First proving out the idea as a POC, then moving to MVP and finally launching a fully fleshed out V1.0.
Established brands can experiment with NFTs in several ways. Here are a few ideas:
Create limited-edition NFTs: Brands can create limited-edition NFTs of their products, services, or experiences, such as a special edition clothing line or a VIP access pass to an event. Brands can do this as a charity auction, with the proceeds going to a charity or other social cause. This can help increase brand awareness and demonstrate the brand's commitment to social responsibility.
Reward loyal customers with NFTs: Brands can create NFTs to reward their loyal customers, such as a special edition NFT for customers who have made a certain number of purchases or who have been members for a certain length of time.
Collaborate with NFT artists: Brands can collaborate with NFT artists to create unique and exclusive NFTs that represent their brand or products. This can help attract new customers and provide a new revenue stream for the brand.
Create a community-driven NFT project: Brands can create a community-driven NFT project where customers can participate in the creation and distribution of the NFTs. This can help build a stronger relationship between the brand and its customers.
Examples: Lamborghini
Lamborghini, the luxury automobile company, also joined the NFT space in January 2022. In truly Lamborghini fashion. The collection screams exclusivity and luxury. It features 400 Lamborghini Aventadors recreated as spaceships. ~ Via WAGMI Tips
This was the opening act of Lamborghini’s step into Web3.
If you go to their website now you’ll see how they’ve evolved their metaverse presence…
Named "The Epic Road Trip," this NFT initiative began in August of last year, and since then, the luxury car company has released four limited-edition NFTs and one rare edition NFT every month for the past seven months.
The final release took place on March 20th and included the brand's signature bonus content as a reward for collectors.
Depending on the type of NFT held, collectors will gain access to exclusive utilities and experiences such as a collectors-only Discord community, mobile and desktop wallpapers, a Centro Stile sketch by Mitja Borket, the Head of Design at Lamborghini, a VIP tour of the automaker's headquarters, a GLB file to explore its Metaverse, and a first look at the newest Lamborghini model.
~ Adapted from NFT Plazas
By doing the NFT launch in stages, Lamborghini de-risked a lot of the launch and so was able to win over both crypto native and non-native fans.
Step 3: Make it easy
Web3 is still hard for most people - even I struggle with getting my head around some of the DeFi stuff that is going on.
So for existing fans (non-crypto native) to engage with NFTs the best way is to not mention anything about the technology but rather the experience.
Reddit did this with digital collectibles - probably one of the best collectible launches we’ve seen.
Making it easier is everything from beginning to end:
Keep comms simple & show utility users will get in simple language
Create wallets for people (but don’t call them wallets - yet)
Purchase/check out with various payment methods to suit end user
Lets take a look at a team doing this.
Start-up Watchlist: Supermojo
Their mission is to make NFTs easy for everyone.
To do that they partner with marketplaces, creators and brands to provide NFT minting, card purchase and custody experiences.
Initially this looks like a check out button that allows for fiat payments.
I spoke to the CEO Craig on my start-ups podcast if y’all are interested:
Conclusions
The NFT market has seen both successful and unsuccessful brand launches, with some brands failing to deliver value to their customers.
To avoid such failures, brands need to educate themselves on the technology and the market before launching an NFT campaign, experiment with limited-edition NFTs, reward loyal customers, collaborate with NFT artists, and create community-driven NFT projects.
By taking these steps, brands can leverage NFTs to increase brand awareness, attract new customers, and provide a new revenue stream for their businesses.
As the NFT market continues to evolve, it is crucial for brands to stay informed and adapt their strategies to succeed in the space.
#12: Using data to drive your NFT strategy
If you're bringing new brands into this exciting new space, it's important to understand how to track and analyze NFT performance. In this post, we'll cover the basics of data analytics, different metrics and KPIs to track, and how to use data to inform your NFT strategy.
Data is still as important in Web3 as it was before
First things first, let's talk about why data analytics is important for NFTs. In the traditional marketing world, data analytics allows you to measure the success of your campaigns and adjust your strategy accordingly. The same is true for NFTs, but with a few unique twists.
For starters, NFTs are a relatively new phenomenon, and the space is constantly evolving. As a result, it can be difficult to know what metrics and KPIs to track. Additionally, the market for NFTs is highly speculative and driven by hype, which can make it challenging to gauge true demand.
Despite these challenges, tracking and analyzing NFT performance is critical for success. By monitoring key metrics, you can identify trends, adjust your strategy, and make data-driven decisions.
Key KPIs to track
So, what metrics and KPIs should you be tracking? Here are a few to consider:
Sales volume: This is the most basic metric to track, but it's still important. By monitoring sales volume, you can get a sense of how popular your NFTs are and how well they're selling.
Social media engagement: In the world of Web3, social media is more important than ever. By tracking social media engagement, you can get a sense of how much buzz your NFTs are generating.
Holders: The number of NFT holders shows the size of your audience and how many people are interested in your brand.
Price: The price of your NFTs can help you understand how the market values your brand and whether you're pricing your NFTs appropriately.
Secondary sales: Tracking secondary sales can help you understand the long-term value of your NFTs and how well they hold up over time.
Putting this into practice
Lets run through some points and how to apply this in practice.
Know your audience: Understanding your audience is key to creating a successful NFT strategy. You need to know who your target audience is and what kind of NFTs they are interested in. Analyzing data from social media platforms, forums, and NFT marketplaces can provide valuable insights into your target audience's preferences, interests, and behaviors.
Beginner tip: Analyze social media data using sentiment analysis tools to understand your audience's emotional response to different NFTs.
Advanced tip: Use advanced analytics tools to analyze large data sets from various sources to identify patterns and trends in your target audience's behavior.
Research the NFT market: Researching the NFT market is essential to developing a successful NFT strategy. You need to know what NFTs are currently popular, their prices, and the factors driving their popularity. Analyzing data from NFT marketplaces and social media platforms can provide valuable insights into the current state of the NFT market.
Beginner tip: Analyze data from NFT marketplaces to identify trends in the prices and popularity of NFTs.
Advanced tip: Use machine learning algorithms to analyze large data sets from multiple NFT marketplaces and social media platforms to predict the future popularity and price of NFTs.
Analyze the competition: Analyzing your competition is critical to creating a successful NFT strategy. You need to know what kind of NFTs your competitors are offering, their prices, and their marketing strategies. Analyzing data from NFT marketplaces and social media platforms can provide valuable insights into your competitors' NFT strategies.
Beginner tip: Analyze your competitors' social media activity to understand their marketing strategies.
Advanced tip: Use advanced analytics tools to analyze your competitors' NFT sales data and identify their strengths and weaknesses.
Use data to create unique NFTs: Using data to create unique NFTs can help you stand out in a crowded market. Analyzing data from various sources can provide valuable insights into creating unique NFTs.
Beginner tip: Analyze data from various sources to identify patterns and trends and use this information to create unique NFTs.
Advanced tip: Use machine learning algorithms to analyze large data sets and identify unique patterns and trends that can be used to create one-of-a-kind NFTs.
Conclusions
In conclusion, data analysis plays a crucial role in creating a successful NFT strategy. Understanding your target audience, researching the NFT market, analyzing your competition, and using data to create unique NFTs can help you stand out in a crowded market.
That’s it for this weeks newsletter. I hope to be back to normal service next week!
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