This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: Marketers Bet NFTs Can Be More Than Just Publicity Stunts
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Tech > Marketers Bet NFTs Can Be More Than Just Publicity Stunts
Tech

Marketers Bet NFTs Can Be More Than Just Publicity Stunts

Editorial Board Published November 7, 2021
Share
Marketers Bet NFTs Can Be More Than Just Publicity Stunts
SHARE

State Farm Mutual Automobile Insurance Co. rolled out an augmented-reality treasure hunt last week targeting football fans, the latest company to use nonfungible tokens as a way to reach potential customers with a new medium.

In the State Farm quest, fans can use mobile phones to search college campuses and other locations for more than a million virtual footballs that may contain prizes, including NFTs to keep or sell. NFTs are vouchers of authenticity for digital assets that can be traded and tracked indefinitely with blockchain technology.

Interest in NFTs is exploding among collectors, investors and speculators, generating $10.67 billion in trading volume in the third quarter of this year, up 704% from the second quarter, according to digital analytics firm DappRadar. There have been a number of headline-grabbing NFT deals, including the sale of a digital image by an artist in March for $69.3 million through Christie’s auction house.

Some marketers are experimenting with NFTs. Last week, fashion retailer American Eagle Outfitter, Inc. put a collection of 120 NFTs up for sale at $1 each, and fast-food chain McDonald’s Corp. began a sweepstakes giveaway of 10 McRib-themed NFTs. Brands including Campbell’s, Pizza Hut, Taco Bell, Charmin and Pringles have also launched NFT-related promotions this year.

Last month, skin-care and cosmetics maker Clinique Laboratories LLC, part of global beauty brand Estee Lauder Cos., invited consumers to enter contests to win one of three NFTs inspired by its products.

“We started to see consumers shift into the NFT space. And for us, we just really wanted to explore,” said Roxanne Iyer, Clinique’s vice president of global consumer engagement.

Clinique plans to continue investing in the area, Ms. Iyer added. “All of the things that we are able to work with the consumer on in the physical world is something that we are thinking about potentially in the digital world as well,” she said.

But NFTs face criticism for the amount of energy used to authenticate them and their transactions. These tokens usually are bought with cryptocurrencies, which likewise consume high amounts of electricity and produce carbon emissions.

The environmental impact of many NFTs may be at odds with sustainability pledges many brands have made, said Mike Proulx, research director at Forrester Research Inc., in an email. “This could result in consumer backlash of brands that purport to be green.”

NFTs have also been called a fad, and, as marketers have moved in, the value of owning a brand’s virtual slice of pizza or virtual football may not be obvious to many consumers, despite a certificate of authenticity.

State Farm lets football fans use mobile phones to search college campuses and other locations for more than a million virtual footballs that may contain prizes, including NFTs.

Photo: State Farm

“Brands that are getting into the NFT space have headwinds to contend with,” Proulx said. “Blockchains, cryptocurrency, and digital wallets are still foreign territories to the everyday consumer…Plus, legal ambiguity exists on whether NFTs grant ‘ownership’ of the actual digital asset or simply the token associated with the asset.”

NFT advocates say the digital assets could play a role in future virtual platforms.

Interpublic Group of Cos. digital ad firm R/GA in London, for example, is working with brands to help create virtual stores in metaverse platforms, including one that will launch next month for British clothing brand Vollebak on the virtual platform Decentraland. The store’s digital merchandise can be bought and worn in the digital environment and are affixed with NFTs.

“These NFTs become assets, digital artifacts that you can then bring into your kind of virtual worlds that you’re exploring, living in, playing in,” said Tiffany Rolfe, R/GA’s global chief creative officer.

Brands also are exploring linking NFTs to the real world. Clinique’s NFT sweepstakes, for instance, promised winners a selection of the beauty brand’s physical products for the next decade. American Eagle’s NFTs come with woven patches with a corresponding image and a gift card.

“Over the past few months, many of the successful projects have had that element of utility really underpinning the value,” said Avery Akkineni, president of consulting firm VaynerNFT, a division of communications company VaynerX that worked with American Eagle on its NFT promotion.

Many brands dabbling in NFTs are doing so hoping to earn media coverage, but they should be taking a longer view, Ms. Akkineni said. Brands could give owners of their NFTs the ability to get early access to merchandise, enter conferences, or even to vote on certain company matters, she said.

“I do think that the collectible market is a niche use case for NFTs. It’s one that is resonating right now, and I think will continue to resonate,” Ms. Akkineni said. “But it’s not ultimately a game-changing opportunity.”

Some consumers may feel more invested in a brand, both emotionally and financially, if they own its NFTs, said Craig Elimeliah, executive creative director at WPP advertising agency VMLY&R. Owning NFTs is like investing in “cultural stock,” he said.

“It’s kind of like you have skin in the game, right?” Mr. Elimeliah added. “If this thing goes up, you might make a lot of money.”

For State Farm, the NFT treasure hunt was a way of getting in front of those under the age of 40 years and pursuing its broader project of using technology to pull consumers closer, said Alyson Griffin, the company’s head of marketing.

“It’s around being able to continuously tell our story to that person over time,” she said.

Write to Megan Graham at [email protected]

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

TAGGED:Tech NewsWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article Houston leaders seek clues for concert surge that killed 8 Houston leaders seek clues for concert surge that killed 8
Next Article Rivera may not have all the answers, but he’s definitely got all the questions Rivera may not have all the answers, but he’s definitely got all the questions

Editor's Pick

A brand new elite member bank card is out as issuers goal rich prospects

A brand new elite member bank card is out as issuers goal rich prospects

A ‘Mornings with Maria’ panel offers their reactions to the December jobs report, detailing the influence it could have on…

By Editorial Board 5 Min Read
Two-Legged Chihuahua Saves Proprietor’s Life by Detecting Coronary heart Assault
Two-Legged Chihuahua Saves Proprietor’s Life by Detecting Coronary heart Assault

Andrew with Champ – credit score, SWNS A two-legged Chihuahua named Champ…

3 Min Read
American Eagle Doubles Down on Sydney Sweeney Denims Advert
American Eagle Doubles Down on Sydney Sweeney Denims Advert

Studying Time: 3 minutes American Eagle just isn't right here to apologize.…

5 Min Read

Oponion

U.S. Treasury Yields Climb After Strong Jobs Report

U.S. Treasury Yields Climb After Strong Jobs Report

Shorter-term Treasury notes led the yield gains following the jobs…

February 4, 2022

One other tech billionaire spends large on the race—this time for Harris

Extremely-wealthy tech bro-turned-philanthropist Invoice Gates quietly…

October 24, 2024

Disney followers blast ‘obscene’ costs at new cake store: ‘Shockingly offensive’

Try what's clicking on FoxBusiness.com. A…

October 15, 2024

Varied children jewelry-making kits recalled for violation of Hazardous Substances Act, greater than 224K impacted

America First, Trump Administration, Division of…

March 31, 2025

E.A. Hanks, Daughter of Tom Hanks, Reveals ‘Abusive,’ Traumatic Childhood

Studying Time: 3 minutes Tom Hanks…

April 4, 2025

You Might Also Like

Our Sleep Knowledgeable Will Assist You Discover the Finest Coloured Noise for Slumber
Tech

Our Sleep Knowledgeable Will Assist You Discover the Finest Coloured Noise for Slumber

As an authorized sleep science coach and mattress tester of 5 years, I am no stranger to soothing noises being…

7 Min Read
I Wrote This Whereas Trotting On a Dozen Totally different Strolling Pads
Tech

I Wrote This Whereas Trotting On a Dozen Totally different Strolling Pads

Sitting at your desk all day is actually a ache. It’s unhealthy on your psychological and bodily well being and…

6 Min Read
Find out how to Preserve Your Outside Griddle From Rusting
Tech

Find out how to Preserve Your Outside Griddle From Rusting

OK, so you have obtained a yard griddle. Congratulations, it is slightly like becoming a member of a cult—albeit one…

4 Min Read
The Nintendo Change 2’s Largest Downside Is Already Storage
Tech

The Nintendo Change 2’s Largest Downside Is Already Storage

The Nintendo Change 2 is unbelievable—already a contender for the most important gaming {hardware} launch of 2025. I am nonetheless…

4 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?