The rise of NFTs has captured global attention, prompting major brands to explore their potential and launch NFT-based collections. This article explores how NFT marketing is building new bridges between brands and users, offering a fresh perspective on engagement in the digital age.
With Facebook’s rebranding to Meta, the concept of the metaverse has entered mainstream discourse. From Web 1.0 to Web 2.0, we witnessed the emergence of new brand economic models: targeted advertising via big data, pervasive online promotions, influencer partnerships, and the birth of “viral brands.” As the internet evolved, transactional economics gave way to attention economics—a system that leverages public psychology and reshapes cultural narratives.
In the Web 2.0 era, platforms like TikTok, Instagram, and微博 held centralized control. They set the rules, and participants had to comply or risk exclusion. Web 3.0, by contrast, ushers in a creator-centric economy where each digital asset is unique, authenticated through blockchain technology, and stored securely. This digital transformation, especially through the metaverse, is poised to disrupt advertising once again.
At the heart of this shift are NFTs.
What Are NFTs?
NFT stands for Non-Fungible Token. It is a unique digital asset stored on a blockchain, most commonly Ethereum. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible and interchangeable, each NFT is distinct and irreplaceable. Think of it as a one-of-a-kind digital collectible, verified and secured through blockchain technology.
This uniqueness aligns perfectly with modern consumer behavior, emphasizing individuality and ownership. NFTs are not currencies—they are digital assets that represent ownership of a specific item, whether art, music, or virtual goods.
The scarcity and exclusivity of NFTs can create tremendous value. For example, a limited-edition NFT-based Alipay skin originally priced at ¥9.99 was resold for up to ¥1.5 million on secondary markets—an increase of over 15,000 times.
NFTs represent the financialization of attention. As more brands issue NFTs, we may see fundamental shifts in business models, with potentially lower customer acquisition costs and deeper consumer relationships.
The Meteoric Rise of NFTs
In the third quarter of 2021, there were approximately 260,000 NFT buyers—a massive increase from just 19,000 during the same period in 2020. According to CNBC, over 10% of U.S. adults now own cryptocurrency. The NFT market has surged to an estimated $44 billion, making it one of the hottest sectors in the digital economy.
NFTs have evolved from a niche interest to a mainstream phenomenon. The term “NFT” saw a 110,000% increase in usage in 2021 and was named the Collins Dictionary Word of the Year.
A landmark moment came in March 2021 when artist Beeple sold his digital artwork Everydays: The First 5000 Days for $69.3 million at Christie’s auction house. This event signaled that digital art—and NFTs broadly—had arrived.
Blockchain technology enables the tokenization of assets, and NFTs extend this capability beyond currency into unique digital items, creating new possibilities for ownership and value in both virtual and physical worlds.
NFT Marketing: A New Model for Brands
Major brands are already leveraging NFTs in innovative marketing campaigns. Several examples illustrate this trend:
- Coca-Cola partnered with digital wearable platform Tafi to release NFT collectibles.
- Gucci introduced its first virtual sneakers, Gucci Virtual 25, priced at just $12. These can’t be resold but allow wearers to display them in digital environments.
- Look Labs launched the world’s first digital perfume, represented as an NFT that uses spectral data to interpret fragrance notes.
- Givaudan, a Swiss fragrance giant, acquired Myrissi, a company that uses AI to translate scents into visual emotional cues.
Even e-commerce platforms are joining in. During Alibaba’s Singles' Day event, brands like Wuliangye and Kiehl’s released digital collectibles, further validating NFTs as a marketing tool.
NFTs as Timeless Brand Assets
What sets NFT marketing apart from traditional digital advertising? Permanence.
Traditional ads have a short lifespan. Consumer attention shifts quickly, and brands must continually reinvest to stay relevant. NFTs, however, are lasting digital assets. Every time a user sees or interacts with an NFT, it reinforces brand memory and connection.
In some cases, NFTs may be passed down through generations, embedding the brand into family histories and transforming customers into lifelong brand guardians. This emotional layer adds depth to consumer relationships that typical ads cannot achieve.
Similar to vintage luxury goods, some NFTs may appreciate over time, creating lasting value for owners and continuous visibility for brands.
Blending Physical and Digital Realities
NFTs are “collectibles” not just because they are scarce, but because they grant owners true digital ownership—including the right to transfer or resell. This transforms consumers into collectors or traders, extending the brand’s reach through decentralized networks.
In the metaverse, almost any virtual item can become an NFT. Films like Ready Player One hint at a future where virtual and physical realities merge. By issuing NFTs, brands can build dedicated user communities, create immersive experiences, and develop their own sub-universes within the metaverse.
The ultimate goal is breaking down barriers between online and offline worlds, merging physical and digital presence into a seamless brand ecosystem.
From Brand to IP: The Future of Marketing
NFTs aren’t just for short-term promotions—they can also strengthen brand identity and culture. Some projects have even evolved into full-fledged intellectual properties.
World of Women (WoW), for example, started as an NFT project focused on female representation. It grew into a powerful community and launched secondary projects, 3D animations, games, and TV developments. Its NFT series generated $79 million in sales within 24 hours.
NFTs help brands deepen emotional ties with consumers and employees while converting brand value into digital assets. They serve as foundational elements in the emerging metaverse economy.
Even traditional advertising is embracing NFTs. ENVOY Network displayed NFT art on digital billboards in New York’s Times Square, offering limited visibility slots that sold out in minutes.
According to Verasity CEO RJ Mark, global digital ad spending is expected to exceed $525 billion by 2024. NFTs are not replacing digital advertising—they are accelerating its evolution and expanding its possibilities.
Regulatory Challenges and the Future
Despite their potential, NFTs face regulatory scrutiny worldwide.
In the United States, regulators are concerned about the use of NFTs in money laundering and tax evasion. The IRS is still determining how to classify and tax NFTs, which currently fall under ambiguous collectible categories.
In China, strict regulations on cryptocurrency have led to restrictions on NFT secondary markets. Major platforms like Alipay prohibit NFT trading and only allow gifting after a 180-day holding period. Without liquidity, NFTs lose much of their financial appeal—but they can still serve as marketing tools and digital collectibles.
These regulatory hurdles mean brands must proceed carefully, often prioritizing functionality over speculation.
Still, the core of NFT marketing remains powerful: managing consumer demand through attention economics. In brand-built virtual worlds, NFTs become integral to economic activity, subtly shaping consumer behavior and needs.
NFTs allow brands to communicate culture, build IP, and transition audiences into communities—even into Decentralized Autonomous Organizations (DAOs). This represents the highest level of Maslow’s hierarchy of needs: self-actualization through participation and co-creation.
NFT marketing could be the key to tomorrow’s digital advertising—but its full potential remains tempered by practical challenges.
Frequently Asked Questions
What is an NFT?
An NFT (Non-Fungible Token) is a unique digital asset verified using blockchain technology. Unlike cryptocurrencies, each NFT is distinct and cannot be exchanged like-for-like.
How can brands use NFTs in marketing?
Brands use NFTs to create limited-edition digital collectibles, enhance customer loyalty, foster community engagement, and establish a presence in the metaverse. They offer new ways to tell stories and connect with audiences.
Are NFTs legal in all countries?
No. Regulations vary widely. Some countries embrace NFTs, while others—like China—restrict their trade and secondary market activity. It’s important to understand local laws before launching an NFT campaign.
Do NFTs have any value beyond speculation?
Yes. NFTs can represent ownership of digital or physical assets, provide access to exclusive content or events, and help build long-term brand communities beyond short-term financial gains.
What is the environmental impact of NFTs?
NFTs built on energy-intensive blockchains like Ethereum have raised environmental concerns. However, many platforms are transitioning to more sustainable technologies, such as proof-of-stake consensus mechanisms.
Can NFTs be used in loyalty programs?
Absolutely. NFTs can serve as digital membership cards, unlock special rewards, and verify ownership in brand ecosystems, making them ideal for modern loyalty strategies.
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