Non-functioning tokens are used in music marketing in amazing ways. Marketers should learn about NFT’s fascinating use cases, says Emil Angervalco-founder of Corite.
Lately, blockchain, cryptocurrencies, NFTs, and the “metaverse” have all become part of popular culture. Today, global brands such as Meta, TIME, Mastercard, Samsung and Louis Vuitton offer NFTs in the hopes that adoption of this technology will continue to accelerate.
For its part, the music industry is embracing non-replaceable tokens at a particularly rapid pace. More and more artists are using this technology and creating new ways to communicate with their fans.
However, investors are not aware of the full range of services offered by the projects they invest in. Putting money into NFTs might be a good idea, but to be successful in the long run you need real utility and value. But few compare the project with its competitors, try to identify its uniqueness, examine the company’s activity or, even less, learn how it calculates the results of its marketing campaigns.
In this article, based on my own experience and observations, I want to talk about NFT use cases that have not received enough attention despite their great potential. These tools can help companies turn their audience into a committed community while capturing the attention of new investors.
1. Use NFTs as tickets to physical events
The ticketing industry is currently facing huge challenges, including counterfeiting, scammers, widespread fraud, and most importantly, fragmentation. When a major platform offers a ticket, it can be bought and sold multiple times in the secondary market. Using NFT tickets can play a key role in solving many of these problems.
So fans don’t have a simple card that they throw away later, but a digital asset with real value. The Mola Chill Club, the first event to completely sell out with NFT tickets, is a great example of what this approach can look like in practice. The project has designed NFTs that allow members around the world access to exclusive music shows. Some collectible coins even offered surprises such as meet and greets with the performers, backstage access and return flights to the first event.
Another example is the Coachella Collectibles, a joint project of FTX and Coachella. The project offers unique opportunities for fans, including permanent access, meeting the artists, etc. The Sweden Way Out West (WOW) festival is currently working on a similar collection. This will be an exclusive NFT collection of footage captured by festival goers.
The growing adoption of NFT ticketing through large-scale events shows that organizers have realized that new technologies offer them opportunities to stand out and grab people’s attention.
2. Digital Collectibles
Creating a digital art collection can also be a great idea. Provided your product has a story and the launch takes place at the right time. To give you an example, in 2017, the CryptoKitties collection attracted 15% of the Ethereum network traffic. However, due to the large number of users, it was difficult to play this game. Regular transactions, such as buying and selling NFTs, took longer than usual and required multiple attempts. This network congestion has not damaged the reputation of the famous kitten NFTs. Rather, the project has been praised by some of the most influential figures in the crypto world.
In the music industry, a song, album or even a music video can become a collector’s item or an asset. Musicians have discovered that NFT technology allows them to connect directly with their fans and create token versions of their works.
Fans and artists can even collaborate on charitable projects, like Grimes did when she released her WarNymph collection. The Canadian singer made $5.8 million selling a collection of 10 exclusive digital artworks, some of which were accompanied by her original songs. A portion of the proceeds from the sale of the WarNymph collection was donated to Carbon 180, a non-profit organization dedicated to reducing carbon emissions.
Indeed, there are many people who like to buy art, books, stamps, etc. This means that collecting NFTs can become a new hobby for them. These collectors are willing to spend money on things that carry their story. To reach this audience, projects only need to create NFT collections with real and consistent stories.
3. Virtual Events
Bringing people together in the same physical space is not always feasible. That is why virtual and hybrid events have become more common in recent years. Virtual meetings and concerts not only help event organizers grow their audience and promote inclusivity, but can also be an effective way to increase revenue and collect important audience data. Despite these advantages, many organizers still don’t know how to organize events online or add virtual components to their physical events.
Today, the term “metaverse” is on everyone’s lips, yet many people still don’t know what it means. Simply put, the metaverse is a virtual space where users can interact with each other in a computer-created environment.
The music industry was one of the first to see the potential of virtual events, especially after the start of the pandemic. Online events are important because they allow artists to reach hundreds of thousands of fans without being limited by geography or location. Admittedly, the virtual world may never completely replace the real world. However, several stars including Marshmello, Ariana Grande and Travis Scott have already achieved massive success on the metaverse.
Indeed, virtual events are especially attractive to people who live far from big cities and have to travel long distances to attend physical events. As virtual events become more popular, they also improve the end-user experience.
The integration of virtual reality, artificial intelligence, NFTs, holograms, 3D graphics, digital linking and cryptocurrencies makes participants feel as if they are “really present” at the event. I predict that this trend will continue in the coming decade and that virtual concerts will be the norm rather than the novelty.
4. NFTs and gamification
I like the idea of integrating gamification in companies through NFT collections. The most attractive aspect for users is its simplicity: buy and store an NFT to enjoy exclusive benefits. What makes using such a product so intriguing? People love to play games and the gamification element that characterizes NFTs grabs the user’s attention, immerses them deeper into your product and sets you apart from your competition.
You don’t have to make a full game. Sometimes it is enough to let people create their own NFTs. German DJ BOYS NOIZE, aka Alex Sidha, dance giant, has already tested this method. His “Rave Pigs” collection consists of 6,666 customizable NFTs of characters from Berlin’s underground electronic music scene. Each of these characters combines 129 traits across 10 visual categories and five audio layers, creating up to 50 trillion combinations. Each NFT contains both a digital image and a music clip, the rights of which belong to its holder.
Making games based on NFTs can also make them more valuable. For example, Axie Infinity lets people “play” with NFTs by breeding Axies, upgrading them, and buying virtual land. By turning these NFTs into games, Axie Infinity has become the largest Play to Earn platform in the world, with a market cap of over $3 billion and a daily trading volume of over $150 million.
5. NFT, marketing and crowdfunding
Finally, I want to talk about crowdfunding and the power of fans, which I believe will benefit creators and audiences alike. This mechanism is triggered when artists decide to fund their albums with the help of the community that believes in their success, rather than resorting to production houses. In return, fans get a share of the streaming profit and valuable NFT, such as an acoustic version of a song or a music video.
Artists receive instant cash that helps cover production and marketing costs without sacrificing ownership of their music. Investors, on the other hand, give money to artists they think have a chance of success, hoping to share in their success.
The unity campaign by Alan Walker, raising $25,000 in a few days, perfectly illustrates how this model works. The song’s streaming goal is likely to be reached sooner than expected. Inspired by this success, an even larger campaign was launched for the same artist’s album Origin. This crowdfunding model can also be improved. For example, the artist can give fans missions and then reward them with airdrops and other benefits.
Ultimately, artists have communities that value them and invest in their success. Users do not place bets because they know that if the artist becomes famous, the value of their shares will increase. The growth of musical NFTs will depend on the work and reputation of musicians.
Marketing and the importance of audience engagement
Embracing blockchain and NFTs can seem challenging for traditional companies trying to scale their marketing. However, like any other technology, its implementation and use by end customers will become easier as it is adopted.
I encourage everyone to get out of their comfort zone and become an “early adopter”. The world is changing and people (especially young people) want to seek new experiences and opportunities. Brands that jump into the NFT space early will be best positioned to take advantage of it going forward.
About the author
Emil Angervall is the co-founder of Corite, a blockchain-based digital music distributor. The platform streams music to multiple streaming services, including Spotify, Apple Music, Pandora, and TIDAL.
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