In the blink of an eye, digital non-fungible tokens (NFTs) have gone from high-end pop culture phenomenon to a high-profile element of a brand’s marketing mix.

For the most part, companies, celebrities, artists and others that have dipped into the NFT waters are seeking some combination of revenue, PR splash, and a way to deepen ties with existing fans and attract new ones. Whatever the goal, it’s become a huge business. Global NFT sales hit $2.5 billion in the first half of this year vs. $94 million in all of 2020.

Defining objectives
The goal of the NFT programs at this point “depends on the brands and different companies have different objectives,” says David Kim, VP of Business Development and Marketing at wdny.io, which has worked with Funko, Capcom (Street Fighter) and Act III Licensing (The Princess Bride). “There are companies where it is just another form of licensing and revenue generation and there are others that say they don’t care as much about the licensing as much as fan engagement.”

The growing number of NFT “drops,” both licensed and non-licensed, that occur seemingly multiple times each week are designed to attract a frenzy of interest. For example, when Funko launched its first NFT program on Aug. 3 with Teenage Mutant Ninja Turtles on the Worldwide Asset eXchange (WAX) blockchain site, 20,000 standard ($9.99) and 10,000 premium ($29) packs sold out in 15 minutes, CEO Brian Mariotti said. (Those NFT packs soon were selling for $57 (standard) and $156 (premium) on secondary markets.)

Key metric
But the key metric may have been that there were 45,000 fans in the digital queue.  About a third of those participating in the sale were NFT collectors; the rest were Funko or TMNT fans, says Kim.

Funko had another NFT sale featuring Bob’s Big Boy on Aug. 31 (15,000 standard and 5,000 premium packs); a third was slated for Thursday (Sept. 30) featuring the rock band Iron Maiden’s mascot Eddie (18,000 standard, 5,000 premium). There will be five- and 15-unit packs – a total of 24,000 packs will be available — starting at $9.99 and there will be a maximum of $30 per transaction. As part of the program, select NFT buyers also receive a related physical Funko Pop! figure developed exclusively for the event.

“I think this is less about marketing dollars and more about how brands are connecting with their communities and allowing them to use and trade an NFT,” said Trevco CEO Trevor George, who also is co-founder of NFT developer Recur, which recently signed to develop NFTs featuring video highlights from the collegiate PAC-12 conference football this fall. “If it’s a one-off landing page with a ‘buy now’ button, that is not an experience. An NFT is about bringing a community around the NFT” that is no different than Reddit, Discord and other online communities where brand fans meet to exchange ideas.”

Among recent developments in NFTs:

• The National Football League (NFL), the National Football League Players Association (NFLPA) and Dapper Labs will launch NFTs this fall with in-game moments featuring current and former players. The NFTs will include the top plays of this and previous seasons.
  The agreement is Dapper’s second deal with a professional sports league, having launched NBA Top Shots last fall. The NFL also is third major U.S. professional sports league to introduce NFTs. Major League Baseball signed with Candy Digital earlier this year. And the National Hockey League has spoken with several NFT developers since the spring, but hasn’t announced a deal, though individual teams and players have done so.
• Recur’s deal with PAC-12 for NFT videos announced earlier this month involved securing the rights from not only the conference, but also video provider Veritone, individual schools and players . Recur expects to secure NFT rights for the Power Five conferences (Atlantic Coast Conference, Big Ten, PAC-12, Southeastern Conference (SEC), Big-12) schools this fall, says George.
• MGA Entertainment signed an agreement with platform provider Ioconic to develop NFTs based on its L.O.L. Surprise collectibles. The sale will launch in October for Apple iOS and in December for Google’s Android.
• Mattel and Hasbro are handling much of their product development internally. Hasbro’s West Coast operations has been charged with creating NFTs, while Mattel is handling with its Mattel Creations platform that introduced the Hot Wheels Garage Series earlier this year with classic cars from the company’s archive: Twin Mill, Bone Shaker, Deora II.  Meanwhile, Hasbro has aired plans for NFTs connected to Dungeons & Dragons, Magic: The Gathering, G.I. Joe and Transformers.
  “NFTs are a real opportunity for us,” Hasbro CEO Brian Goldner told investors earlier this year. “We have so many brands that can operate on multiple demographic levels and we have our arms around this and see multiple opportunities on the NFT side. We are actively developing our opportunities here and do see it as substantial.”
• Tampa Bay Buccaneers QB Tom Brady’s Autograph joint venture with Upper Deck added golfer Tiger Woods to its NFT line-up. The premier edition of the Woods NFT was released on Tuesday {Sept. 28); a signed version is available on Thursday (Sept. 30) with 89 units priced $500-$1,500. Woods joins an Autograph advisory board that also includes Simone Biles, Naomi Osaka, Derek Jeter, Wayne Gretzky and Tony Hawk, each of whom will have NFTs. Woods’ NFTs are being sold through DraftKings Marketplace.
• WarnerMedia’s DC will bring its characters into NFTs starting Oct. 5,  joining rival Marvel Entertainment, which announced an agreement in August. DC, which is working Palm NFT Studios, also will distribute free NFTs to those who register for its DC FanDome global virtual event on Oct. 16.