Porsche has taken a bold step in an attempt to conquer the NFT space and penetrate the unchartered waters of Web3. On the 23rd of January, the company issued a collection of 7,500 NFTs in celebration of their luxury vehicles, granting those who hold them exclusive rights and access to events and various Porsche merchandise. They claimed that this was a means to empower loyal fans to help shape the company’s future in the virtual world.
However, this was met with criticism from enthusiasts of NFTs who perceived it as a mere ply for profit, given the relatively steep mint price of 0.911 ETH, approximately $1475 at the time. Porche’s lack of marketing or community-building effort. Relying solely on the strength of the brand name, only added to this perception.
A mere 1,800 out of 7,500 NFTs were sold at the mint. Porsche quickly claimed that their holders had spoken and they would reduce supply to “create the best experience”.
But, this was a fallacy. The voices of the holders were not heard, because they largely did not exist and Porsche never bothered to establish a community. The unfortunate few who did mint one quickly disposed of it on the secondary market. This is a cautionary tale for those who do not take marketing and community building seriously in Web3 and for users who jump at name-brand NFTs without research.
What Could Porsche Have Done Better?
Community Building & Marketing:
Porsche could have begun building the community for their project long before launching it. The company announced the NFT collection during Art Basel back at the end of November 2021, giving them two months between the public announcement and mint. Throughout this time, Porsche should have been actively building a community of luxury car fans within the Web3 space.
The company received some media attention simply due to the brand name mentioning Web3 and NFTs, but beyond that, it was reasonably quiet. Porsche could have run media campaigns (earned and paid) for the duration before the mint and should have been active on social media at the very least. A blog or social media channel dedicated to its Web3 efforts would have gone a long way in establishing its expertise in the innovative industry.
Porsche should have partnered with a Web3 agency to manage any Web3-related communication. An industry-native agency like Off-Chain Communications could have helped align Porsche with the Web3 community, and driven the media and content strategy for a successful launch. A Web3 design studio for the NFTs, or name brand artists in the space, could have made all the difference in their mint. Most Web3 studios and agencies have already built fanbases for their brands, and Porsche could have leveraged that.
Porsche could have also signed sponsorship deals with NFT social media influencers. Several NFT influencers have grown sizable cult followings around themselves that will jump on anything they endorse. Porsche could have cheaply tapped into that for a better kick-off.
At the end of the day, Porsche treated the Web3 space like a cash grab for easy money, and it showed. For a brand of this size to so clearly put such little effort into its mint proves that it is not as easy to launch NFT collections as it was during 2021. Even the big brands will need to put together community-building strategies including a media presence, social media activity and a genuine interest in the space.
To give the impression that Porsche was interested in Web3 involvement and was not just issuing NFTs “for the money,” the mint price should have been reduced to an affordable range. The general consensus among the NFT community is that anything over 0.25 ETH at the mint price is too expensive.
Porsche set the mint price, seemingly without doing any homework at all. Any research or testing would have very quickly shown mixed emotions over a mint price near 1ETH, especially in the middle of a bear market.
As mentioned earlier, Porsche paused minting as backlashes intensified. That created a faux scarcity and led to skyrocketing prices. Porsche did manage to save its floor price by depleting supply unexpectedly at the last minute. The entire launch has left a bad mark on Porsche’s name in the Web3 space and could potentially limit near-term future profits from the space. If nothing else, Porsche’s jump into NFTs has proven that everybody needs a real marketing strategy to take advantage of Web3.
Interested in marketing your blockchain/Web3 project? Please get in touch with Off-Chain Communications for a free consultation and quote.
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