Non-fungible tokens (NFTs) burst onto the scene in 2021 as digital artworks and collectibles that sold for millions of dollars. But in 2024, brands are finding innovative new uses for NFT technology beyond just digital art. Major companies are leveraging NFTs in exciting ways to boost brand awareness, build engaged communities, expand into the metaverse, capture secondary sales, and open up new revenue streams.

Boosting Brand Awareness and Engagement

NFTs give brands an entirely new marketing channel to generate buzz and get people talking. By collaborating with popular NFT projects or influencers, brands can increase their visibility and credibility overnight.

Limited-edition NFT drops are akin to special merchandise launches, allowing brands to engage existing fans while also attracting newcomers. Burberry’s NFT collection with Mythical Games for their game Blankos Block Party includes branded in-game accessories like boomboxes, TB sliders, lucky horseshoe necklaces, and a ‘Shellphone’ accessory, as well as a limited-edition Burberry Blanko NFT character named Minny B.

NFTs present an exciting new channel for brands to increase awareness and engagement.

Brands like Gucci and Louis Vuitton are seeing great success using NFTs as a marketing tool. As more companies follow suit, expect more clever brand-building uses of NFT technology.

Building Brand Communities and Loyalty

Beyond just marketing, NFTs enable brands to foster tight-knit communities of their most passionate fans. By tying NFT ownership to special access and experiences, brands incentivize customers to literally invest in the products they love.

Owning certain NFTs can unlock:

• Exclusive content or virtual hangouts
• Early access to new products
• Special discounts and offers
• Voting rights to influence decisions
• Revenue sharing if the NFT increases in value

This “fan-as-owner” model makes buyers feel like they have real skin in the game. Instead of just being customers, fans become directly aligned with the brand’s success.

NFTs deepen the brand-customer relationship when owners get membership perks and a financial stake.

From small startups to giants like Nike, expect more brands to experiment with token-gated communities that transform fans into super-engaged brand partners.

Expanding into the Metaverse

As virtual worlds like Decentraland and Sandbox continue growing, the metaverse presents a new frontier for brands to stake their claim. Forward-thinking companies are using NFTs to establish vibrant digital presences with virtual flagships where people can browse products, attend events, or just hang out.

For businesses both big and small, having coveted virtual goods and experiences let brands stay relevant in emerging digital spaces. Whether companies create their own branded metaverse platforms or partner with existing ones, NFTs provide the keys.

NFTs let brands pioneer new virtual frontiers where people work, play, and congregate.

The opportunities span from virtual fashion shows and product launches to one-of-a-kind collectibles that consumers display as status symbols. NFT adoption makes the metaverse scalable and profitable.

Capturing the Resale Market

Unlike traditional merchandise, NFTs enable perpetual royalty streams from secondary sales whenever tokens change hands. With the NFT market projected to reach $2.7 billion by 2025, that adds up to serious money left on the table without tokenization.

Savvy brands are getting in on the action by making limited NFTs that gain value over time as demand increases and supply stays fixed. When speculation drives prices up, each secondary transaction provides brands valuable revenue.

For companies struggling to compete with third-party resellers, NFTs provide a legally sound way to profit from secondary sales. Brands can also use tiered pricing models with NFTs, similar to luxury goods, opening up products to wider audiences.

NFTs let brands benefit from aftermarket sales, capturing value from speculation and scarcity.

Going forward, more brands will leverage NFT tech to control supply chains and gain secondary market footholds.

Driving New Revenue Streams

Lastly and most obviously, direct NFT sales offer a straight-forward new income stream for brands. From multinational companies like Coca-Cola and McDonald’s to smaller local businesses, all types of brands launched successful NFT drops in 2022.

While exact figures vary, NFT issue fees and royalty percentages provide concrete monetary returns. 

NFTs provide a turnkey way for brands large and small to generate new revenue.

Beyond initial sales, brands focused on community loyalty can leverage valuable secondary market activity. Ultimately, the benefits of maintaining relevance, deepening customer connections, expanding virtually, controlling supply chains, and tapping new income make NFT adoption a no-brainer for future-oriented brands.

Conclusion

Brands today face stiff competition from disruptive upstarts in increasingly fractured markets. Legacy companies must evolve or fade away as newcomers keep raising the bar.

Luckily, NFTs provide powerful tools for established brands and scrappy startups alike to boost awareness, build loyal communities, expand into virtual worlds, control secondary sales, and unlock new revenue streams.

Expect NFT integration only to accelerate across industries as more brands realize the multifaceted benefits. The organizations taking risks early with NFT community building and virtual goods creation will have pole positions as web3 adoption grows. After past failures to capitalize on social media, mobile, and other emerging technologies early, brands today know they must be proactive in leveraging paradigm-shifting NFT tech.

The incentives are perfectly aligned between ambitious brands and passionate fanbases when done properly. Unlike figurative phrases about skin in the game, NFTs provide literal skin that transforms casual consumers into deeply invested brand co-owners. This next stage where physical and digital realities converge through token-gating presents amazing opportunities.

Brands clinging to outdated models face irrelevance as more digitally native upstarts embrace web3 communities and virtual-first strategies. However, incumbents started 2022 strongly by acquiring NFT studios, launching branded marketplaces, and more. Expect more brands to push boundaries with NFT technology in surprising customer-friendly ways during this decisive phase shaping the future.