Non-fungible tokens are used in amazing ways in music marketing. Marketers should take note of NFT’s fascinating utility cases, he says Emil Angervallco-founder of Corite.
Lately, blockchain, cryptocurrencies, NFTs and “metaverset” have all become part of popular culture. Today, global brands like Meta, TIME, Mastercard, Samsung and Louis Vuitton are offering NFTs in the hope that the adoption of this technology will continue to accelerate.
For its part, the music industry is embracing non-fungible tokens at a particularly high rate. More and more artists are using this technology and creating new ways to communicate with their fans.
But investors are not aware of the full range of services that the projects they invest in provide. It may be a good idea to put money into NFTs, 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 unique character, 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 experiences and observations, I would like to tell about NFT use cases, which have not yet received sufficient attention despite their great potential. These tools can help companies turn their audiences into a dedicated community while attracting the attention of new investors.
Use NFTs as tickets to physical events
The ticketing industry is currently facing enormous challenges, including counterfeiting, fraudsters, widespread fraud and most importantly, fragmentation. When a larger platform offers a ticket, it can be bought and sold multiple times in the secondary market. The use of NFT tickets can play a key role in solving many of these problems.
So fans do not want a simple ticket that they throw out later, but rather a digital asset with real value. Mola Chill Club, which was the first event to be completely sold out with NFT tickets, is a good example of how this approach can look in practice. The project has designed NFTs that give members access to exclusive music shows around the world. Some fundraisers even offered surprises like meeting and greeting the artists, backstage access and return flights to the first event.
Another example is Coachella Collectibles, which is a joint project between FTX and Coachella. The project offers unique opportunities for fans, including permanent access, meetings with 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 recorded by festival goers.
The growing use of NFT tickets at major events shows that organizers have realized that new technologies give them opportunities to stand out and capture people’s attention.
2. Digital collectibles
Creating a digital art collection can also be a great idea. Provided your product has a history and launch is at the right time. To give you an example, the CryptoKitties collection in 2017 attracted 15% of Ethereum network traffic. However, due to the high number of users, it was difficult to play this game. Regular transactions, such as buying and selling NFTs, took longer than usual and required more trials. This congestion of the network has not damaged the reputation of the famous kitten NFTs. On the contrary, the project has been praised by some of the most influential people in the crypto-sphere.
In the music business, a song, an 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 tokenized versions of their works.
Fans and artists can even work together on charity projects, like what Grimes did when she released her WarNymph collection. The Canadian singer earned $ 5.8 million by selling a collection of 10 exclusive digital artworks, some of which accompanied her original songs. Part of the profits from the sale of the WarNymph collection were donated to Carbon 180, a non-profit organization that aims to reduce carbon emissions.
There are actually a lot of 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 history. To reach this audience, projects only need to create NFT collections with real and consistent stories.
3. Virtual events
It is not always possible to bring people together in the same physical space. This is why virtual and hybrid events have become more and more frequent 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 benefits, many organizers still do not know how to organize events online or add virtual components to their physical events.
Today, the term “metaverse” is on everyone’s lips, but many people still do not know what it means. In short, the meta-verse is a virtual space where users can interact with each other in a computer-generated environment.
The music industry was one of the first to see the potential in virtual events, especially after the onset 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. Granted, the virtual world can never completely replace the real world. However, several stars, including Marshmello, Ariana Grande and Travis Scott, have already achieved great success on the metaverse.
In fact, virtual events are particularly appealing to people who live far from major cities and who have to travel long distances to attend physical events. As virtual events become more and more popular, they also improve the end-user experience.
The integration of virtual reality, artificial intelligence, NFTs, holograms, 3D graphics, digital pairing, and cryptocurrencies allows attendees to feel as if they are “truly present” at the event. I predict this trend will continue over the next decade, and virtual concerts will be a norm rather than a novelty.
4. NFTs and gamification
I like the idea of integrating gamification into companies through NFT collections. The most attractive thing for users is the simplicity: Just buy and keep an NFT to enjoy exclusive benefits. What makes it so exciting to use such a product? People love to play games, and the gamification element that characterizes NFTs captures the user’s attention, immerses them deeper into your product, and sets you apart from your competitors.
You do not have to create a complete game. Sometimes it’s enough to allow people to 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 custom NFTs of characters from Berlin’s underground electronic music scene. Each of these characters combines 129 features divided into 10 visual categories and five sound layers, making it possible to create up to 50 trillion combinations. Each NFT contains both a digital image and a music clip, the rights of which belong to its holder.
Creating games based on NFTs can also make them more valuable. Axie Infinity, for example, 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 value of over $ 3 billion and a daily trading volume of over $ 150 million.
5. NFT, marketing and crowdfunding
Finally, I would like to talk about crowdfunding and fanpower, which I think benefits both creators and audiences. This mechanism is triggered when artists decide to fund their album with the help of the community that believes in their success, instead of resorting to production houses. In return, fans get a share of the streaming profits and valuable NFT, such as an acoustic version of a song or a music video.
Artists instantly receive cash that helps cover production and marketing costs without sacrificing ownership of their music. Investors, on the other hand, give money to artists they believe have a chance to succeed, hoping to share in their success.
That unit campaign by Alan Walker, who allowed him to raise $ 25,000 in a matter of days, perfectly illustrates how this model works. The song’s streaming goals are likely to be reached faster than expected. Inspired by this success, an even bigger campaign was launched for the same artist’s Origins album. 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 the musicians.
Marketing and the importance of audience engagement
Embracing blockchain and NFTs can be challenging for traditional companies trying to scale their marketing. However, like any other technology, its rollout and use of end customers will be 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 area early will be best positioned to take advantage of it in the future.
About the author
Emil Angervall is a co-founder of Corite, a blockchain-based digital music distributor. The platform streams music to several streaming services, including Spotify, Apple Music, Pandora and TIDAL.
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