NFTs are used in amazing ways in music marketing. Projects should take note of the exciting applications that exist, says Emil Angervall, co-founder of Corite.
In recent years, blockchain, cryptocurrencies, NFTs and “Metaverset” have all become part of pop culture. Global brands like Meta, TIME, Mastercard, Samsung and Louis Vuitton incorporate NFTs into their product range. The introduction of these technologies is expected to continue to accelerate. The music industry is promoting the adoption of NFTs at a particularly fast pace – an increasing number of musicians are embracing this technology and creating new ways to connect with their fans.
Investors, on the other hand, are not always aware of the full breadth of a company’s services and are still investing. It may be a good idea to invest money in NFTs, but for long-term success, the investments should have real benefit and value.. However, very few people carry out an appropriate product analysis in advance. This includes comparing the project with others in the market, trying to identify uniqueness, examining the company’s performance, and how it reports on the results of its own campaigns.
Therefore, in this article I would like to talk about NFT usability options based on my own experiences and observations. These opportunities have not yet received much attention despite great potential. However, companies could use it to turn their audience into a loyal community while attracting the attention of new investors.
1. NFTs as ticket sales for real events
Today’s ticketing industry faces enormous challenges such as counterfeiting, fraud and most importantly, fragmentation. When a major platform issues a ticket, it can be bought and sold multiple times in secondary marketplaces. Using NFT tickets can help solve several of these issues.
Fans do not just buy paper and throw it away, they have a digital asset with real value. As the first fully sold-out event with NFT tickets, the Mola Chill Club is a great example of how this can work in practice. The project’s NFTs give members access to exclusive worldwide music shows. Some of the tokens in the collection also included surprises, such as meeting the artist, accessing backstage and return flights to the first event.
Another example is the Coachella Collectibles series. The project is a collaboration between Coachella and FTX. This series offers unique options like lifetime passes, meet-and-greetings and more. The Swedish Way Out West (WOW) festival is currently working on a similar collection. This is an exclusive NFT collection of moments captured by festival goers.
The increasing use of NFT tickets at high-profile events shows that new technologies provide new opportunities to gain a competitive advantage and capture people’s attention.
2. NFTs and gamification
I like the idea of bringing gamification into businesses using an NFT collection. Simplicity makes it very attractive to users: you only need to buy and hold a token to enjoy exclusive benefits. Such product interaction is so interesting because people like games. The gamification element of NFTs maintains users’ attention, immerses them deeper in the product and sets the project apart from the competition.
You do not have to develop an entire game at once. Sometimes all it takes is for your customers to be able to create their own NFTs. The German dance world giant BOYS NOIZE aka Alex Sidha has already put this to the test. His “Rave Pigs” collection consists of 6,666 generative tokens with characters from Berlin’s electronic underground scene. Each of these characters was created by combining 129 features from 10 visual categories and five sound layers. This results in over 50 trillion possible combinations. Each unique token contains both a digital image and a music clip owned by the token holder.
Developing games based on such tokens can also add value. For example, on Axie Infinity, NFTs are an active part of the game. Users can breed characters, upgrade them and fight against each other or even buy plots of land. By turning NFTs into games, Axie Infinity became the largest play-to-earn platform in the world. AXS market value is over $ 3 billion and the daily trading volume is over $ 150 million.
3. NFTs, Marketing and Crowdfunding
Finally, I would like to go into crowdfunding with the help of the fans. In my opinion, this opportunity benefits both the creators and the audience the most. Artists can fund their new album with the support of a committed community without having to rely on labels. In return for their contributions, investors are entitled to a share of the streaming revenue and a valuable NFT, such as an unplugged version of a song or a music video.
Artists instantly receive money for production and marketing costs while retaining ownership of their music. For users, it’s like giving the money directly to the artists they believe will be successful. If the success pays off, investors will share in it.
that Unit campaign by Alan Walker raised $ 25,000 in a matter of days, making it an excellent example of how this model works. The song’s streaming goals are likely to be reached faster than expected. Inspired by this success, another, much larger campaign was launched for Alan’s Origins EP. This crowdfunding model can also be extended with “fan missions”. Users receive rewards such as airdrops or perks for performing certain tasks set by the artists.
Ultimately, musicians have a committed community that believes in success and is willing to invest. Users, on the other hand, know that as the artist becomes popular, the value of their shares will increase. Because of the musicians’ work and reputation, their digital products are worth more than purely NFT-based projects?
Marketing and the importance of audience engagement
Integrating blockchain and NFTs for marketing purposes will initially seem like a daunting move for traditional companies. But the more daily use, the easier it is to integrate this technology into projects. In addition, the concept provides some benefits to end users. I encourage everyone to get out of their comfort zone and become pioneers in this field. The world is changing, and especially young people want to take advantage of new experiences and opportunities. Brands that enter the world of NFT early will be best prepared for the future and can fully realize the potential.
About the author
Emil Angervall is a co-founder of the blockchain-based digital music distribution company Corite. The company offers music by artists on various streaming services such as Spotify, Apple Music, Pandora and TIDAL.
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