Why Brand NFTs Are the Future of Digital Marketing?

Author: Brent Annells

It's been a long journey since the internet gradually entered the mainstream in the 1990s. We’ve evolved from the early days of the World Wide Web (Web1.0), where users could only consume content, to today’s more interactive and user-centric Web2.0. Now, we are riding the wave of a new era known as "Web3.0"—a decentralized network powered by blockchain technology.

In the Web1.0 era, marketing focused on building awareness and driving traffic to websites. With the rise of Web2.0 and social media, marketing became more about user engagement and building relationships with customers. Web3.0 ushers in a new age of marketing where authenticity, trustworthiness, transparency, and ownership matter most.

NFTs (non-fungible tokens) are one of the key technologies powering this new decentralized web. NFTs are unique digital assets—meaning they cannot be copied or replaced—which makes them ideal for markets such as digital art, event tickets, and sports collectibles.

Major brands are already experimenting with or actively using NFTs. Adidas launched an NFT campaign in collaboration with Bored Ape Yacht Club, PUNKS Comic, and gmoney. NBA Top Shot, a platform for buying and selling digital collectible highlights of NBA games, has seen explosive growth in both transaction volume and users since its launch in 2020. Social media platform Twitter allows users to set verified NFTs as their profile pictures (PFPs).

As Web3.0 evolves, it’s clear that NFTs will play a significant role in the future of digital marketing. Brands at the forefront of this shift are exploring how to leverage underlying NFT technology to connect and bind with their customers through innovative online-offline integrated experiences. In other words, the magic isn’t in the NFT itself—it lies in the rights and utilities attached to it.

Brands Successfully Embracing NFTs

2021 was the year NFTs went mainstream. While some high-profile brand attempts ended in failure, others excelled in launching their NFT collections.

In summary, successful NFT projects share several common traits:

1/ They come from established major brands, meaning consumers can immediately see how the NFT integrates into the brand’s ecosystem and narrative.

2/ The issuer already has a strong fan base and audience, so the existing community is more likely to feel excited and invested in the brand’s NFT offering.

3/ The NFTs offer real value and scarcity, two essential characteristics—especially when considering potential secondary market resale opportunities.

Based on these success factors, we conducted an in-depth analysis of three major brands’ NFT initiatives.

● The first is Nike, which partnered with studio RTFKT on a project called Cryptokicks. These are collectible digital sneakers modeled after real-world scarcity principles. What sets it apart is that NFT holders earn royalties from secondary sales alongside Nike and RTFKT—a revolutionary “fans-as-stakeholders” model unimaginable just five years ago.

Unsurprisingly, Nike fans were thrilled. Thousands of NFTs sold out quickly, with individual prices reaching nearly $500,000—clear proof of demand. How did they achieve this? Simply put: leveraging existing brand momentum and targeting loyal fans. Many treated these limited digital sneakers the same way they would limited-edition physical Nike shoes—owning them proudly as valuable assets to show off to friends.

● The second is TIME Magazine, which launched its first NFT collection in March, consisting of three parts and featuring digitized covers from past decades. This elegant brand NFT gives fans the chance to own unique digital artifacts from TIME’s rich history. NFT holders unlock benefits such as free subscriptions to TIME and other perks tied directly to the magazine experience. Over the past year, TIME has generated over $10 million in incremental revenue from its NFT efforts.

● The third is La Prairie from Switzerland, collaborating with renowned digital artist Carla Chan on the Space Beyond NFT—an eternal, generative digital artwork that dynamically changes based on real-time population and environmental data from 31 of the world’s most populous cities. This project reflects La Prairie’s brand commitment to art and the environment.

These three brands share two key traits: they found ways to create NFTs aligned with their brand identity while delivering genuine value to both existing and new fans.

Brand NFTs 2.0: Delivering Real Utility

NFT 1.0 largely ignored utility, focusing instead on hype and speculation to drive attention. Inspired by leading brands, NFT 2.0 will go beyond collectibles, game skins, and sneaker-based speculative investments. It will generate far greater value than coupons or gated content access.

Basic perks like discounted subscriptions are insufficient to drive broad adoption. Take event tickets: expecting superfans to rush for a simple discount subscription is unrealistic. For NFTs to truly take off in the future, they must deliver real utility—something consumers are willing to invest time or money into.

Especially when targeting the top 1% of brand loyalists or superfans, focusing solely on basic utility represents a low starting point. NFT 2.0 will include royalties, rights, and revenue-sharing—such as a percentage of sales—providing stronger incentives for long-term holding. I view this simply as giving fans “equity” in the brand, a powerful way to transform brand supporters into brand owners.

Moreover, NFT airdrops can become practical tools for connecting users with the brands and products they love. By enabling unique, scarce, and valuable interactions, brands can grow closer to their audiences. For example, a customer could purchase an NFT granting early access to new products or even a voice in company decisions.

The key for enterprises designing an NFT 2.0 strategy is creating shared value—bringing users closer to brands, missions, or products they already believe in.

Closing the Gap with Consumers

As brands and large corporations evolve from Web2.0 to Web3, adopting new technologies to stay competitive is critical. An increasing number of projects are now building open-source bridges between Web2 and Web3, helping companies integrate tokens, smart contracts, and other blockchain technologies with their existing websites, systems, and data.

For brand issuers aiming to implement use cases discussed above—such as early product access or revenue sharing—they need the ability to identify and interact with NFTs in user wallets. By recognizing and engaging any NFT within any user wallet, brands can form deeply bonded connections with customers in highly innovative ways.

With the capability to detect, verify, and interact with NFTs in real time via brand websites or loyalty programs, companies can use NFTs as bridges to deliver premium products and services to high-value customers who love their brand.

For instance, a superfan of a sports team could receive exclusive merchandise or VIP experiences by holding the team’s NFT. Similarly, a luxury fashion brand’s customers might gain early access to new collections or invitations to special events by holding the brand’s NFT. More directly, users could earn a share of brand revenue simply by holding its NFT.

At Smart Token Labs, we’re passionate about the underlying NFT technology and the wave of innovation it enables.

When partners or brands ask us whether they should get involved—the answer is always:

• It’s not about airdrops,

• It’s not about perks,

• It’s not about cool or novel designs,

• It’s about building deeper brand connections with your most valuable fans.

About the Author:

Brent Annells is a serial entrepreneur and tech enthusiast, and CMO of Smart Token Labs, a company that deeply connects brands with the NFT ecosystem. Brent has previously led partnerships and brand-building initiatives at major tech companies including Facebook and Uber.