Entering Web3 with NFTs

Marketing strategies to help make your first NFT a winner.

Entering Web3 with NFTs

In 2021 the world was caught in a frenzy surrounding a new technology – the Non-Fungible Token (NFT). Growing by 11,000% in the span of a year, NFTs were popularized by highly publicized multi-million dollar sales, such as Beeple’s First 5000 Days, capturing a global audience and elevating the mystique of NFTs.

What are NFTs?

While NFTs are widely identified as algorithmically generated digital artworks, that is not the only use case for the technology. NFTs essentially operate as non-editable records of assets and the full capability of NFTs is still a blue ocean of possibilities.

These unique and distinct codes are recorded on a blockchain system, similar to ones used in cryptocurrencies such as Bitcoin and Ethereum. Transactions and records on the blockchain are irreversible and immutable, guaranteeing the authenticity, ownership, and provenance of a digital asset.

NFTs and global brands

What was previously only leveraged by web-based companies is now on the radar of almost every brand in the world. Global brands such as Nike are taking notice of the meteoric growth of NFTs and applying them in creative ways to interact with consumers to generate their own meteoric growth.

We are able to observe microtrends developed due to emerging technologies, consumer behavior, and brand deployments of NFTs. As more branded deployments, known as mints, enter the market, we are able to identify distinct branding strategies and the results of these minting events.

Marketing strategies of NFTs

Retailers such as Nike and Adidas have launched exclusive digital collections of their products in the form of NFTs aimed at increasing brand awareness. Strengthening the idea of customer loyalty and building hype surrounding the brand is the main strategy in these mints, usually done in collaboration with well known developers.

The marketing strategies behind these projects are so strong that typically the contents of these mints are unknown to the consumer until after the purchase is made. Similar to their high-profile and coveted product launches, there are typically significantly fewer NFTs available for purchase than there are consumers. Scarcity increases the perceived exclusivity of these brands which extends into their physical products; On some occasions these digital releases are accompanied by limited physical products such as the Gucci x Superplastic NFT collection. Owners of this NFT are entitled to an exclusive statue manufactured by the storied luxury brand.

Developing an exclusive digital collection gives brands a new avenue to interact with their consumers. Highly targeted mints increase a consumer’s potential Lifetime Value (LTV), especially for brands where a large amount of their revenue is attributed to their high-spend clients. On the other hand, exclusive mints aimed at the general public have the potential to drum up an incredible amount of publicity and attention.

Adding utility and driving loyalty

Connecting passions and habits to collectibles is a well-known strategy for businesses to captivate their audiences. Tour merchandise for popular music artists are a memento for the concert-goer to keep; Sports cards commemorate iconic moments in time of a favorite player. The NBA has successfully digitized these moments in the form of NBA Topshots – collectible NFTs that represent different moments in a player’s career. The strategy for these mints is to offer a personalized product that is updating an old collecting habit, a natural progression into the digital world.

Perhaps the most recognizable NFT collection, The Bored Ape Yacht Club, hosts a yearly festival known as ApeFest. Holders of the NFT Tokens are invited to this event to participate in an exclusive concert featuring headline celebrities and the opportunity to network with other holders of the NFT. Members of these communities typically are hosted in a private talk-server where consumers are able to communicate with each other; Brand representatives are able to open a line of constant contact with their consumers through the talk-servers. These NFT talk-servers help a brand increase the number of potential opportunities to interact with the public. Any sort of update to those NFTs also provide a chance for the brand to reactivate the buzz surrounding their tokens, whether new features are added to the token or if an event is hosted for token holders.

Are NFTs a good strategy?

Many brands have accepted NFTs as a reasonable investment and continue to expand their usage of this technology. It’s not yet clear whether or not NFTs will maintain their current trajectory but they have proven useful for companies who wish to get closer with their audience.

It’s clear to see a major transformation in the way brands communicate with their consumers, developing experiences intertwining the digital and physical realms. Redefining what it means to have community engagement and strengthen a base of loyalist consumers is possible with NFT communities. Increasing user engagement on new and novel products becomes more accessible by deploying a NFT or collectible alongside the product. Further incentivizing a specific user behavior enables a brand to build predictable patterns of engagement – such as daily activations and redemptions.

Understanding a brand persona is foundational to launching a successful NFT. The audience who is being delivered the marketing messaging should be interested in the trend first. Once the deployment is ready, it is imperative to delight the audience with the product and grow brand awareness.

Companies such as Nike, Adidas, and Drop see the future ahead of us and are actively learning to determine what makes the most sense to explore. It is absolutely essential to think about all the possibilities of using new technologies for a brand and envisioning opportunities to leverage these developments.

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    Bringing Data Science to Retail

    Get a complete view of your customer, so no money is left on the table.

    The 21st century consumer’s path to purchase meanders through a stream of data and information. In today’s digital world marketers need to understand audiences and apply insights to deliver relevant experiences to their consumers. But that is not as easy as it sounds – Google and Apple are both significantly restricting the amount of information available to marketers by limiting the effectiveness of advertising cookies.

    Making informed decisions is now critical for marketers looking to deliver the most impact with their campaigns. Each company’s strategy will vary based on its business goals and their specific audiences, what remains true is the necessity for accurate and actionable data.

    Combining Datasets

    Data captured by a company typically only encompasses a few interactions with a digital advertisement or website engagement. Finding more insights on how a consumer interacts with a social media post and mobile app is possible but still we are missing critical pieces of the consumer experience. Building a complete vision requires the integration of all available data collected and will help achieve marketing objectives.

    But what if your company does not own those data sources? Partnering with a data specialist, like Drop for Business, will allow you to access that information – developing a more enriched image of the consumer.

    Uncovering data insights with a partner comes with many advantages. Drop for Business maintains a growing consumer dataset where members share their transaction data in exchange for monetary reward in the form of Drop points. This data encapsulates all of a consumer’s spend in various categories including competitive retailers, an avenue of data that is typically unknown to a company.

    Integrating Analytics

    Once a complete view of the consumer is generated it is time to use this information in decision making. Identifying valuable customer segments and applying them to marketing strategies turns insights into valuable actions:

    • Personalize customer experiences with audience-level data.
    • Segment customer bases to reach specific audiences with custom messaging.
    • Analyze marketing channel effectiveness and optimize budget allocation.

    Getting a more comprehensive understanding of consumer behavior leads to more effective marketing efforts. In turn, these efforts go on to improve the bottom-line performance of a business. Marketers with integrated technologies are more able to deliver experiences to consumers that delight each time they occur.

    How can Drop for Business help?

    Integrating more data into your marketing strategies enables you to gain actionable insights that prioritizes your business needs and understands your customers. For the best impact, the sources of the data must be reliable and up-to-date – Drop for Business currently provides a complete view of consumers from a combination of surveys and real-time, first-party data from billions of transactions, to truly understand your customer’s actions and future intent. With all this data in hand, you can be sure to target the right customer, at the right time to supercharge your ROAS.

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      Winning Share of Wallet

      Strategies to winning the consumer’s attention and ultimately the sale.

      Strategies to Win Share of Wallet During Key Shopping Moments

      The consumer journey is a fundamental pattern that marketing and advertising strategists use to drive results. Shoppers today are inundated with influence and information coming from mixed media. What was once a direct shopping journey has been made an exploration, with the ease of access to information.

      As a result, advertisers must find ways to influence a sphere of customer journeys that lead to their brand and products. How?

      1. Aim to reach people, not personas

      Target people who are exhibiting signs of being in-market for a purchase. Typical strategies attempt to identify trends using a data set customized to their unique business. Understanding the indicators of a motivated shopper is not easy, but when done right enables marketers to close the sale.

      2. Deliver a quality experience

      It is key to ensure that the experience of your brand is high quality to make the shopping experience as seamless as possible. An easy experience is critical to building a base of brand loyalists.

      3. Always stay credible

      The multiple touchpoints between a brand and a shopper are each opportunities to build trust. To help, strive to anticipate consumer apprehensions and then address them during the shopping journey; ensuring that the message behind your brand is cohesive will help consumers make an informed decision that they can feel good about.

      4. Identify your moments

      While it is easy to identify that a prospect is actively searching for your product online, it is not always easy to understand where the shopping journey started. The desire to make a purchase can stem from a moment not directly related to the product – understanding these moments enables marketers to double-down on what is working.

      People make deliberate decisions about shopping, weighing many individualized factors to make their choices. With abundant information available online, it is now the objective of the advertisers and marketers to generate a holistic strategy that caters to the fragmented journey outside of their own digital properties.

      Gaining a view into the activity and actions of a consumer requires insight about their daily lives outside of interactions with a specific brand environment. In addition to making great content, it must be delivered to consumers at a time that matters to them outside of the traditional shopping journey. A prospective consumer that discovers content should be able to relate to the content as well as find it useful and trustworthy – keeping the brand top of mind for a purchasing decision.

      How can Drop for Business help?

      Many marketers are partnering with companies that specialize in connecting consumers with products and services that are specific to their needs. Drop for Business has over 5 million members that receive their own tailored content which is most relevant to their lives. Members choose to share their shopping behavior with Drop in exchange for Drop points, ensuring a clear exchange of value and maintaining trust between the member, Drop, and our brand partners.

      With this data, Drop for Business is positioned to segment, target and tailor content to meet consumers at these unique key shopping moments and ensure an efficient conversion of lapsed shoppers while maintaining a healthy relationship with loyal shoppers. By maximizing this strategy, marketers are able to promote customer loyalty as well as attain more customers, thereby increasing share of wallet.

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        Driving Scale with Card-linked Offers

        Drive 10x more scale than affiliate offers – here’s how to do it.

        Card-linked offers (CLO) are a great tool to drive in-store activations and reward your most loyal customers. But that is not the only reason why they’re becoming more popular with business and consumers alike. CLOs with Drop for Business have proven to drive 10x more scale than affiliate offers – here’s how it works.

        Affiliate Marketing

        Affiliate marketing is an advertising model where publishers (such as Drop) earn a commission for successfully promoting a product or service for an advertiser (ie. brand or merchant). The publisher is rewarded a payout for providing the result desired by the advertiser, usually the sale of a product.

        Affiliate marketing attribution is tracked via unique web URLs, capturing data points that inform the advertiser where the end-customer originated from and attributes the sale to the publisher responsible for attracting the customer to make their purchase.

        While affiliate marketing has been an extremely successful approach for direct to consumer and ecommerce businesses, traditional brick and mortar businesses struggle with associating online marketing activity to offline purchases.

        Card-Linked Marketing

        A new advertising channel gaining popularity with the rise of open banking is card-linked marketing (CLM). CLM operates similarly to affiliate marketing, with the key difference being publishers and advertisers attribute customer purchases using the bank-level transaction details, rather than web URLs. Card-linked offers are capable of measuring both online and offline purchases, and gaining traction with omni-channel and brick and mortar marketers.

        Benefits of Card-Linked Marketing

        Card-linked offers (CLOs) are the most popular way in which consumers choose to interact with brands on Drop and, as a result, they consistently unlock 10x more scale than affiliate offers.

        Card-linked offer attribution has historically been a challenge for marketers because purchases are measured in the bank environment as opposed to tracking click activity. Advertisers are accustomed to a 1-to-1 marketing attribution known as “Last-click Attribution”, where the last Publisher to receive a click from the consumer is granted commissions for the sale.

        But with Drop Pulse, our partner success tool, marketers get the best of both worlds, the increased scale of CLOs with the same last-click attribution as affiliate offers.

        Attribution with Drop Pulse

        Drop bridges the gap with a unique click ID that correlates the card-linked offer activation to the consumer’s transaction; Drop For Business is able to provide 1-to-1 tracking data to brand partners, accessible through Drop Pulse. CLO click attribution by Drop for Business is an order-of-magnitude improvement in marketing reporting that allows marketers to measure when the digital offer activation occurred and correlate it to the resulting online or offline purchase.

        At Drop for Business, we empower marketers to drive cost-efficient advertising campaigns by targeting the right customers, at the right time. Get in contact with our team and find out how Drop for Business is able to leverage CLO click attribution to exceed your advertising goals.

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          Win in a Cookie-less World

          Leveraging First-party Data to Win in a Cookie-less World

          Is your business poised to survive the impending loss of third-party data? In a world where cookies are becoming increasingly scarce, how can you effectively target and target your customers and accurately measure attribution? Drop for Business has the only future-proof solution you can rely on, once the cookies start to crumble.

          What are cookies?

          Digital advertising has historically relied on a piece of data deliciously named the “cookie”. This benign-sounding nodule is widely used as a tracker of web activity; functioning as a small digital marker passed between a user’s browser and websites, to help site owners better understand their visitors’ online activity.

          While the initial intent of the cookie was not to track user behavior on the internet, it quickly became commonplace. Personalized advertising unlocked by 1-to-1 tracking from cookies revealed new heights for digital marketers and digital marketing ROI. Cookie-based marketing began to play an integral role in the performance of multi-million dollar advertising campaigns on Facebook, YouTube, Reddit and many others.

          Why are cookies disappearing?

          Apple was the first major company to severely limit the ability of advertisers to track users on its devices – requiring consumer permission before tracking activity on websites and apps. Safari also limits the usage of cookie tracking, further restricting the details that advertisers can glean from an Apple device. While Apple is not strictly disallowing cookies from accessing Apple users, it is a fair assumption that, when asked, consumers will generally shy away from any form of tracking. These restrictions spelled a major shift in digital advertising, one that was further exacerbated by Google’s decision to limit the ability for cookie based tracking on its Chrome web browser.

          What does this mean for businesses?

          The restrictions put in place by Apple and Google have made it increasingly difficult to track users on the open web and businesses have been forced to adopt data collection at touchpoints within their direct control, like their websites and mobile apps. Nevertheless, such data collection techniques generally lack the granularity required for businesses to discern consumers’ intentions, preferences, lifestyle, etc.

          Facing these limitations, businesses are looking to augment their data to unlock a holistic understanding of their market landscape. To do so, they are partnering with organizations specializing in consumer-permissioned collection of data. Partners that specialize in data collection must take a strategic approach to ensure that their datasets are accurate as well as ethically sourced. The modern consumer is informed and knowledgeable of the value of their data. As a result, consumers are more inclined to provide accurate and complete information when a clear exchange of value is proposed.

          How can Drop for Business help?

          Drop for Business maintains a growing consumer base of over 5 million members, representing an average of 2 million transactions per day. All transaction data is stored with bank-level security and scrubbed of identifying information to maintain a safe and anonymized data set. Members actively participate in sharing their data in exchange for monetary rewards in the form of Drop points – pushing a frontier forward in a world where consumers and permissioned data sets are the priority.

          Advertisers are now able to leverage Drop’s ethically sourced, permissioned, first-party data sets in lieu of the advertising cookie to drive efficient and scalable campaigns far into the future, while driving significantly more value for both their brand and the end consumer.

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          Learn how your business can see these results too