Music Marketing Money

Weekly Dispatch | April 20, 2015

Carlos Diaz April 20, 2015 Weekly Dispatch No Comments
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This is a weekly digest of the top news at the intersection of the music industry, brand marketing and commerce compiled by Carlos Diaz & Music Audience Exchange.

See more or subscribe at musicmarketingmoney.com.

 

FEATURED

Music, Music (and Apple) Everywhere

In short, we are smack-dab in the crosshairs of a historic convergence of music, marketing and technology. But what we in the marketing and advertising world are experiencing is not exclusive to Madison Avenue. Western culture as a whole is transforming, and no surprise, Apple is a big part of that. By John Maxwell: Link

 

BRAND MARKETING AND MUSIC

Jeep® Brand Launches Unprecedented Marketing Campaign for All-New 2015 Jeep Renegade through Exclusive Music Platform with KIDinaKORNER/Interscope Records and X Ambassadors – The Jeep brand is launching its North America marketing campaign for the all-new 2015 Jeep Renegade through an innovative music platform with KIDinaKORNER/Interscope Records. The marketing campaign will leverage television, print, radio, experiential, digital, social and website channels, in addition to long-form video elements, as part of its launch. By PR Newswire: Link

Converse bringing free 5-night music festival to Boston – On Thursday morning the Massachusetts-based shoe company Converse will announce another significant addition to the city’s festival landscape: Converse Rubber Tracks Live Boston, a free five-night event set to take over the Sinclair, a club in Harvard Square. By The Boston Globe: Link

3 ways brands can engage with shoppers on social media – Instead, they’re more likely to make a decision based on what inspires them and what they aspire to look like rather than hard facts. This is why consumers are increasingly turning to visually oriented platforms like Polyvore, Pinterest and Instagram, which are fun and easy to browse and allow for products to be displayed in a context that helps inspire a purchase, very much like a brick-and-mortar store would. Here are three ways online stores can inspire and speak to shoppers: inspiration requires content, content requires community & paid amplifies organic. By Mashable: Link

Should brands collaborate more with music artists? – Rita Ora promoting 100 years of the Coca-Cola contour bottle and Ellie Goulding’s ongoing relationship with Nike are just two recent collaborations between music artists and major brands. Jerry Perkins, the chief executive of Mixmag, believes music should be “the main touchpoint for brands seeking credible engagement with millennials”. He says: “While deals of mere commercial convenience will likely backfire, the co-creation of content with carefully selected artists has produced astonishing results for brands in terms of reach and engagement.” Yet tie-ups are not without risk. Clean Bandit’s turn in a recent Microsoft ad promoting Cortana, the digital assistant on Windows Phones, has been labelled “awful” and “tripe” by Twitter users. But if brands and bands can get the balance right, there is much potential. According to PwC, the total sponsorship market in sports and entertainment is worth $43 billion (£28.9 billion), and the music industry accounts for 10 per cent of this. By Media Week UK: Link

4 ways to better market your brand to millennial consumers – When you’re trying to reach this audience, it’s not enough to just have a great concept. Even if your company or product fills a need or solves a problem for millennials, you need to deliver your message in a very clear and authentic way in order to be heard. This generation has grown up in an age of instant gratification, and they’re not willing to waste time or money unnecessarily. My generation is always on the hunt for ways to make life efficient and convenient, especially through technology. For those companies that are looking to successfully break through to this demographic, I have some additional advice to consider as you think about advertising and marketing tactics for the year ahead. By The Chicago Tribune: Link

Is Marketing the New Music Business? – It’s a debate as old as the chicken and the egg: Musicians value their creations in one way, but the music business sees it differently. The problem predates the Internet, but with the shift from records and cassettes, to Napster, to Spotify and Pandora, things haven’t gotten any easier. Some musicians have taken a stand against the profit distribution schemes of streaming services, while others have embraced social media to build valuable brands that extend beyond traditional revenue streams. There’s no right way to navigate the web of illegal downloads, slim margin streams, and the stigma of “selling out,” but there’s a lot we marketers can learn from the artists who have come out on top of the mess that is the music business in 2015. By Skyword: Link

Millennial Food, Wine And Beer Festivalgoers Want To Share A Brand Experience – Eventbrite, which saw a 47 percent increase in food and beverage events from 2013-2014, surveyed 5,000 millennial festivalgoers in this category and found that 80 percent have attended at least three or more food, wine or beer events in the past 12 months. This brings us to the question: What is it about the live festival atmosphere that is so inviting for millennials? Beyond anything that is physically being offered or shown at the festival, it is the sense of community that draws in the millennial crowd. As the most accepting generation to date, millennials embrace these types of environments and connect with brands that enhance the experience. Three lessons for brands aiming to connect with millennials at live festivals. By Forbes: Link

Kansas (The Band) Teams With Mobius For Mobile Marketing Campaign – The band Kansas has teamed up with mobile marketing specialist Möbius to promote the release of the band’s forthcoming documentary, “Miracles Out Of Nowhere.” Fans opted into the marketing program by texting pictures of the stage from Kansas concerts and in return, t Kansas the bandhey receive exclusive video previews of the documentary and other updates about the band. The Results: The documentary debuted at #37 on Album Chart, #61 on Top 200. Close to half of the documentary’s pre-sale orders were acquired through Mobius. By Hypebot: Link

DELEON® Tequila Unveils The Next Level Marketing Campaign – Tailor Made For Today’s Fast-Paced Consumers- DELEON® Tequila launches its first, high-impact full-scale media campaign consisting of content designed under the creative direction of the brand’s co-owner Sean “Diddy” Combs. The campaign encapsulates the forward-thinking vision of Combs, whose proven track record of successfully marketing to Millennials helped shape the strategy for the DeLeon brand’s latest foray into media. By Marketwatch: Link

 

MUSIC INDUSTRY

Apple’s new Beats Music thinks Taylor Swift will make you pay – Apple Inc. has asked Florence and the Machine and more than a dozen other artists for exclusive deals to promote a revamped Beats Music, and persuade people to ante up for what they’re accustomed to getting pretty much for free. The company’s in talks with the British group, which is set to release an album in June, about giving Apple limited streaming rights to a track, and has approached Taylor Swift and others about partnerships, according to people familiar with the matter. The idea is that exclusives will be bait for music lovers loathe to pay for subscriptions. By MSN.com: Link

AMERICA’S 12 GREATEST MUSIC CITIES, RANKED – Since you pretty much never go anywhere anymore without headphones blasting music into your ear holes, a city’s music scene ranks pretty close to its restaurants and bars in terms of cultural goings-on. Some cities birth entire musical genres and hordes of artists, while others act like magnets that bring in eclectic acts from across the nation. Which is why we factored in local acts, historic venues, and explosive festivals to produce this indisputable ranking of the top 12 American cities for music. Did your hometown make the cut? By Thrillist: Link

Digital music matches physical sales for the first time – Digital music revenues matched physical sales for the first time in 2014, thanks to strong growth in the streaming market. The digital market rose 6.9% to $6.9 billion (£4.6 billion), representing 46% of all global music sales, reported the music industry body IFPI. CDs, vinyl and other physical formats also accounted for 46% of the market, with rights for performances, films and advertisements making up the rest. But overall revenue slipped by 0.4%. Pharrell Williams’s Happy was the most-downloaded single globally in 2014, with Taylor Swift the most popular artist, the IFPI said. The London-based body also noted that vinyl sales had increased by 54.7%, and now account for 2% of global revenues. By BBC News: Link

Universal Music Agrees to Pay $11.5 Million to Settle Digital Royalties Class Action – Universal Music has agreed to pay up to $11.5 million and bump up royalties going forward to resolve a contention lawsuit that alleged it had cheated recording artists by improperly classifying digital downloads off of services like Apple’s iTunes as “sales” rather than “licenses.” The settlement, filed on Tuesday and needing a judge’s approval, would compensate an estimated 7,500 artists including named plaintiffs Chuck D. of Public Enemy, Rick James (by way of trust), Dave Mason of Traffic, Whitesnake, Andres Titus of Black Sheep, Ron Tyson of The Temptations, Martha Davis of the Motels, Feliciano Tavares and a few others. By The Hollywood Reporter: Link

40 Best Things We Saw at Coachella 2015 – By Rolling Stone: Link

Fair Play, Fair Pay Act of 2015 would require radio to pay for music – A broad coalition of recording artists, labels, managers and other industry players are lining up in support of a bill introduced in Congress on Monday designed to require forms of terrestrial and digital radio to pay royalties to musicians for use of their recordings. The Fair Play, Fair Pay Act of 2015 is co-sponsored by congressional representatives Jerrold Nadler (D-N.Y.), Marcia Blackburn (R-Tenn.), John Conyers Jr. (D-Mich.) and Ted Deutch (D-Fla.) and would terminate broadcast radio’s long history of using sound recordings without paying performance royalties. The bill would also change the way satellite, Internet and streaming services pay for the music that are integral to their businesses. By The Los Angeles Times: Link

Fashion shares the spotlight with music at festival – The Coachella Valley Music and Arts Festival, which is held in the Southern California desert on two consecutive weekends and began Friday, is a style destination as much as a musical one — this year more than ever. Besides the ever-growing array of off-site parties and sponsored suites, there are now runway shows and a pop-up fashion store on festival grounds. “It’s the curation of artists and diversity of music that worked,” he said. “That’s always been true with music and fashion. Music has always influenced fashion and vice versa … So for our industry to harness that was just a natural evolution.” By The Bend Bulletin: Link

The summer music festival economy, explained – What is a music festival? When did music festivals start? What are the biggest music festivals? Are music festivals a good place to hear music? What impact do they have on popular culture? What kind of impact do music festivals have on the industry? By Vox: Link

Exclusives Screw Music Fans – Listeners lose when music becomes fragmented. You might like your new on-demand streaming better than CDs, but at least you could buy them in any store. At this rate, no matter who you choose to pay $10 a month, you might not get all the music you want. As each streaming app tries to differentiate itself, they’re signing exclusivity and windowing deals so you can only hear certain songs on their service, not their competitors’. As the lucid Bob Lefsetz wrote, if exclusives become fragmented, “you Balkanize the landscape and you hurt everybody in the ecosystem.” By Tech Crunch: Link

 

MUSIC TECHNOLOGY

Infographic: See Which Devices Your Target Audience Is Using Millennial, Gen X and boomer consumers on their preferred digital – Each generation uses digital differently to consume content and shop for products and services, and marketers need to understand these differences to target their desired audiences on the devices they are most likely to be using. Millward Brown Digital surveyed more than 1,000 consumers in three generations (millennials, born after 1980; Generation X, born 1965-1980; and boomers, born from 1946-1964) to see how different age groups favored different screens for various activities. By Adweek: Link

Apple Seeds iOS 8.4 Developer Beta With All-New Music App – With iOS 8.3 out the door, it was inevitable that Apple would launch iOS 8.4 in developer preview – and now it’s here. The pre-release software ships with a new version of Apple’s native iOS Music app, complete with a brand new design and a reworked version of iTunes radio. The release notes for the new version of the beta, as noted by 9to5Mac, describe some of the changes, including the ability to customize playlists with images from your library, and a new Artists view that features imagery of musicians while browsing. By Techcrunch: Link

TuneCore, Believe Digital Improve Music Services – It has been estimated that TuneCore and Believe will now represent twenty-five to thirty percent of the new music uploaded to iTunes on a daily basis. The companies bring different options to the table, and now they hope their partnership will help compliment one another. TuneCore offers musicians a “do-it-yourself” type of model, while Believe offers its musicians marketing services in radio and project management. Last month, TuneCore launched a new app called DropKloud. The app allows musicians to interact with their fans by exclusively dropping new music on the system called Klouds, which is available to users in specific locations. Artists can also invite their fans to pop-up showcases, and post behind-the-scene photos that can be viewed by their fans as well. DropKloud is a part of TuneCore’s new Artist Relations initiative, which was designed to help artists get more exposure when they release a project. TuneCore aims to provide a platform for independent artists in order to expand their opportunities in the music industry. By FDRMX: Link

Messaging apps: hits or hype for future music marketing? – Facebook’s acquisition of WhatsApp woke the market up, with WhatsApp and Facebook Messenger now having 700m and 600m active users respectively. But neither has done much with music, noted Mas.Then there’s Snapchat with its huge teenage audience swapping disappearing snaps, but also following artists and creators within the app. Its Our Story feature gathers snaps from certain places and events – the Coachella festival for example. But Snapchat also has its Discover section, with a range of media partners – from Vice to National Geographic, but also Warner Music Group in the US, and even a Madonna video premiere. And Snapchat’s own channel in Discover has been promoting emerging musicians too. By Musically: Link

How the Digital Music Industry Can Spin Your Listening Habits Into Ad Dollars – What do your listening habits say about you? That’s one of the most important questions the digital music industry is asking as it develops new technology for highly targeted advertising. The biggest players like Spotify, iHeartMedia and Pandora are developing technology to serve ads to listeners, and they all see value in targeting based on musical tastes. By Adweek: Link

Pandora Increases Programmatic Offerings, Allows For Demographic Targeting – Brands that want to advertise on Pandora can now target users based on specific demographics, further emphasizing the streaming radio service’s move toward programmatic advertising. “When you are buying programmatically on Pandora, whether on Web or on mobile, you are getting declared age, gender and residence location,” Pandora vp of product Jack Krawczyk said. “Brands can now layer that with what Pandora has done with multicultural communities. It’s really allowing advertising communities to enable their buys at higher integrity.” By Adweek: Link

Tidal music-streaming service launches feature to promote emerging artists – The launch of the streaming service Tidal has been met with criticism from artists such as Lily Allen, Mumford & Sons and producer Steve Albini. Tidal is owned by big-name musicians, including Jay Z, Beyoncé, Chris Martin, Daft Punk, Jack White, Kanye West, Madonna, Rihanna and Usher, and has promised to give shares to other artists, too. In a move that may silence its critics, who say the company will only bolster the careers of its celebrity investors, Tidal has introduced a feature aimed at promoting emerging artists. Tidal Rising is part of an update to the service’s web and mobile app, reports the Drum, and currently lists Drenge, Stealing Sheep, Juce, Chastity Belt, Young Fathers and Marika Hackman among its featured artists. “Every week, nascent talent in any genre will emerge,” Tidal said of its new function. By The Guardian: Link

Carlos Diaz

Carlos Diaz

Carlos is Chief Revenue Officer at Music Audience Exchange. Previously, Carlos built and operated large sales organizations for marketing and technology companies including ReachLocal, Neustar and Hibu.
Carlos Diaz

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