- Pepsi will launch its first collection of non-fungible tokens (NFTs), with a focus on lowering the cost barrier to entry for consumers interested in blockchain-based technology, according to an ad.
- Developed with VaynerNFT, the Pepsi Mic Drop collection includes 1,893 actives, a number that pays homage to the year the soft drink was created. Each piece emerges as a microphone icon tied to the brand’s history in music and pop culture, with designs inspired by variations such as Classic Pepsi, Silver Diet Pepsi, and cult favorites like Crystal Pepsi. NFTs are randomly generated by an algorithm, ensuring that each is unique.
- A waitlist for the first 1,843 NFTs opens tomorrow (December 10) at noon EST via a microsite, and approved registrants will be able to mint a coin for free, excluding gasoline charges from the Ethereum blockchain, on December 14 at 12:30 p.m. The other 50 NFTs will be factored into future marketing efforts, suggesting that Pepsi is trying to foster long-term community over a one-time stunt.
Pepsi is the latest mainstream brand to enter the burgeoning world of NFTs building on a long history of pop culture, with the soft drink distributor highlighting its associations with the music world through a motif of microphone. The company has sponsored the Super Bowl halftime show for years, while recent campaigns have included partnerships with emerging artists like Doja Cat.
As the NFT space becomes more crowded, it’s important for marketers to create a stronger value proposition. Pepsi is seeking to do this by offering its NFTs free of charge to pre-approved registrants in the United States, except for one transaction, or a “gas” fee for using the Ethereum blockchain. Those interested in securing one of the NFTs will need to set up an Ethereum wallet to transfer their coin to once it’s been minted, and will be able to display their price on third-party platforms like OpenSea.
Scale is another key part of Pepsi Mic Drop. Rather than handing out a handful of assets up for auction for a premium, the marketer has created 1,893 that seek to encompass its pop cultural associations and beverage portfolio.
“We created the Pepsi Mic Drop Genesis NFT collection for our fans, putting their interests and needs first by ensuring that NFTs are all free and fairly presented as an inclusive and accessible opportunity for anyone to experience. the exciting world of NFTs, “said Todd Kaplan, vice president of marketing at Pepsi, in a press release.
While skepticism about NFTs remains high in some circles, recent activations have paid off for marketers and helped build their brand equity with consumers. Budweiser released their first batch of NFT at the end of November and saw their “Heritage Collection” – made up of 1,936 distinct pieces based on their beer cans – sell in an hour, the age of the ad has been reported. Coca-Cola, Pepsi’s main rival, sold its first NFT for over $ 500,000 at auction in August, a high price which could have explained the emphasis placed by Pepsi Mic Drop on accessibility. All proceeds from the Coke auction went to Special Olympics International.
Beyond cost considerations, NFTs are criticized for their impact on the environment. Blockchain-based transactions require a large amount of computing power that can produce mind-boggling shows. Pepsi seems aware of the potential for backlash at a time when sustainability demands escalate against large packaged goods companies. It will implement a carbon offset program to try to reduce the net carbon footprint of all transactions to zero.
Crypto enthusiasts and insiders alike may view the proliferation of branded NFT declines as intrusive, belittling what they believe to be a long-term value game in the pursuit of quick publicity. Pepsi is withholding part of its NFT for future marketing and giveaway activations in an effort to build an ongoing community of holders.
The campaign is also a sign that marketing departments dedicated to NFTs and other ideas adjacent to the Metaverse could gain traction. VaynerX debuted his advice VaynerNFT in July, with Budweiser as a launch partner.