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- 1. Music Marketing SIMPLY THE BEST WAY TO CREATE AN EMOTIONAL CONNECTION WITH CONSUMERS
- 2. The provenance of the music marketing project At Sony Music one of our biggest challenges has been to find new ways of connecting our artists with the widest possible audiences. Although we believe that developing meaningful partnerships with brands is a powerful way of creating this connection, we are aware that we haven’t always planned and executed these partnerships as well as we could. To address this, we designed a project with the following aims: – Discover how music is perceived as a marketing tool. – Understand what music means to consumers. – Define what makes good and effective music marketing for different parts of the market. – Integrate the results into the tools and creative processes we use at Sony Music to connect artists with audiences through partnerships.
- 3. The Cone At Sony Music we use a tool called the Cone to understand the UK music market. It splits up the UK population into 4 groups who have different degrees of passion and engagement with music. Our knowledge and expertise around these groups allows us to understand which artists, brands and the type of music marketing activity that fits best with which of the four groups.
- 4. Methodology A 3 Stage Methodology formed the basis of the Project Stage 1 Stage 2 Stage 3 Expert Qualitative Quantitative Interviews Exploration Validation What Interviews with industry experts 22 paired depth interviews with An in-depth nationally to understand the marketing consumers from across the representative online survey of context and the past, present Sony Music Cone representing 1,018 adults 15+ to validate and future role of music in the the whole UK music market. our insights. marketing mix. Who When September 2009 September 2009 November 2009
- 5. A new era of communications The communications model is fundamentally shifting. The push model of interrupting the lives of consumers to communicate with them has given way to the pull model of engaging and conversing with them. THEN NOW INTERRUPTION ENGAGEMENT BROADCASTING PARTICIPATION MASS MEDIA CONVERSATION MESSAGING SOCIAL MEDIA CONTENT Music Marketing exists at the heart of this change. Connecting with consumers “Music used to be used to set the scene through their passions is in advertising, now it’s much more about the most powerful way to creating engagement with consumers” engage with them. – CEO, Brand Entertainment Agency
- 6. What do we mean by music marketing? Any informed use of music by brands that helps attract, engage, influence and reward consumers. From priority ticketing, ambassadors, on-pack promotions and downloads, to sponsorship, content, product placement and live events
- 7. INSIGHT: 1 MUSIC IS THE UK’S NUMBER 1 PASSION.
- 8. INSIGHT 1 – Music is the UK’s number 1 passion UK Consumers are more passionate about music than any other form of entertainment, interest or lifestyle pursuit. No other entertainment/interest/ lifestyle pursuit can evoke as wide a range of emotions as music. Most commonly used as mood enhancer, music selection often reflects mood but consumers can also use it to create a particular mood. Music is also associated with some of the deepest emotions. It can trigger extreme joy or sadness, nostalgic reflections and lead to an almost spiritual connection between music and consumers. Hobbies and Interests that UK adults are “passionate about” “It’s different. With sports 39% of UK 39% LISTENING TO MUSIC it’s something I enjoy. adults claim 32% READING BOOKS With music it’s something to be be that I depend upon and “passionate” 28% SURFING THE INTERNET rely upon it. It’s more of about music 25% TRAVELING a need” Enthusiast / Male / 31 / London
- 9. INSIGHT: 2 MUSIC CAN BE ONE OF THE MOST EFFECTIVE WAYS OF CONNECTING WITH AND ENGAGING CONSUMERS
- 10. INSIGHT 2 – Music can be one of the most effective ways of connecting with and engaging consumers Music is amongst the most persuasive marketing tools Consumers see it as being great at: 1. Providing information about a brand. 2. Feeling positive towards a brand. 3. Increasing likelihood of purchase. 4. Increasing likelihood to talk about a brand Impact of Marketing Activity TV advertisements 45.7% Impartial reviews from other consumers, experts or journalists 41.0% Sponsorship of music artists or music events 30.9% For Fanatical music Sponsorship of your favourite TV shows 27.8% fans sponsorship Information provided on a company’s own web site 27.0% of music artists or Newspaper advertisements 24.2% music events is the best marketing activity Advertisements you see in stores when you are out shopping 24.1% for feeling positive Sponsorship of sports teams or sports events 23.5% towards a brand. Poster advertisements you see whilst out & about 23.0% Radio advertisements 23.0% “I still think of it as Leeds Carling weekend. I’m a fan of Fosters and 4% Stella. But for some reason I took Carling to Leeds (even though it was no longer sponsored by them). It just felt right.” Fanatic / Male / 22 / Manchester
- 11. INSIGHT: 3 WHEN USED TACTICALLY, MUSIC IS A POWERFUL SALES DRIVER AND CUSTOMER RETENTION TOOL
- 12. INSIGHT 3 – When used tactically, music is a powerful sales driver and customer retention tool Music based offers and promotions are seen as valuable and unique in the eyes of consumers and are likely to elicit a high response from them. Promotional Value Map High value High value 30% Free Music CDs Low response High response Valuable & unique Free DVDs Free Concert Tickets Likely to respond Competitions Free Merchandise 40% 0% Free Music Downloads Free Video Games Low value Free Mobile Ringtones Low value Low response 0% High response Kinds of music marketing consumers would like to see between brands and their favorite artists “That you get something back. It’s not just us buying things to make them richer. You know we’re the ones 59% Loyalty Scheme 54% Music in Advertising 58% Freebies and Giveaways 54% Music for Charity that are keeping them going so they should keep us 55% Classic Albums 48% Competitions happy.” Traditional / Female / 43 / London Based on question: Please can you select the offers and promotions that would be most valuable and unique to you/you would be most likely to respond to? Axis based on top 2 box scores, money off / BOGOF excluded from chart.
- 13. INSIGHT: 4 WHEN USED STRATEGICALLY MUSIC MARKETING CAN SERVE A WIDE RANGE OF LONG TERM OBJECTIVES
- 14. INSIGHT 4 – When used strategically music marketing can serve a wide range of long term objectives From awareness, to understanding, consideration and loyalty music has the ability to drive a full range of marketing needs. BRAND TYPE OF MM EXAMPLE OBJECTIVE ACTIVITY MasterCard sponsorship Awareness Sponsorship of the Brit Awards Branded free form radio Understanding Content without playlists Exchange points from Trial Promotions products for music rewards Chance to earn money can’t buy Loyalty / advocacy Priority Access tickets in exchange for working on community projects
- 15. INSIGHT: 5 DESPITE ITS POTENTIAL, MUSIC IS RELATIVELY UNDER-EXPLOITED BY BRANDS
- 16. INSIGHT 5 – Despite its potential, music is relatively under-exploited by brands Current expenditure and awareness of music marketing bears no resemblance to consumer passion and makes music a significant untapped commercial opportunity. % OF BUDGETS SPENT ON PROMOTIONS Online Outdoor Newspaper Magazine Radio Cinema Music makes up TV just 0.5% of total marketing expenditure 2008 Advertising Association Yearbook. Positive Effect on Brand Perception Q: “What examples can you give of brands Music marketing 3rd most effective activity getting involved in music?” amongst those aware of it, but only 11th A: “I don’t know I suppose Apple and iTunes.. That’s the only one I can think of” amongst those who aren’t aware. Enthusiast / Female / 34 / Birmingham
- 17. INSIGHT: 6CONSUMERS WELCOME BRAND INVOLVEMENT IN MUSIC
- 18. INSIGHT 6 – Consumers welcome brand involvement in music Far from being seen as being a sell out - brand involvement in music is seen as supporting the industry. Across all audience segments music based campaigns were given high approval ratings - but the devil is in the detail for some specific segments. Brits / Mastercard 62% o2 approval by Fanatics 72% ORANGE approval by Enthusiasts 58% ASDA approval by Casuals 72% approval by Traditionals Only 8% of consumers strongly On a brand giving money to an artist to make a music video agree that artists linking up with “I like that because it gives them money to explore in the video. They have brands is a “sign of selling out”. Even the money to do what they want to do. Hopefully the brand and the music for Fanatics, this figure is only 15%. come together” Casual / Male / 21 / Manchester
- 19. INSIGHT: 7IS THE KEY SEGMENTATION TO GETTING IT RIGHT
- 20. INSIGHT 7 – Segmentation is the key to getting it right It’s important that music marketing activity satisfies the differing needs of music consumers. FANATICS AND ENTHUSIASTS CASUALS AND TRADITIONALS Fun Accessible & Simple Cool, Clever & Cutting Edge Less precious of music and artists, they Enjoy high levels of effort & involvement. YOUNGER will engage in fun activity that requires The more exclusive the better. minimal effort and involvement Respect the Tradition Indulge Me with Nostalgia Most likely to interact with activity that Not actively involved & see music demonstrates respect for artists, is subtle as often ‘not for them’ but musical OLDER in it’s brand involvement and maintains memories are hugely evocative and an authentic brand/artist relationship are the key to engagement “It does help with the promotion of it. But sometimes there’s just no relevance to it. It’s like the name is just there and no one really pays any attention to it. It’s all to do with money isn’t it. They don’t really care about music itself.” Casual / Male / 17 / London
- 21. INSIGHT 7 – Segmentation is the key to getting it right FANATICS AND ENTHUSIASTS TYPE OF MARKETING CASUALS AND TRADITIONALS Protectiveness of music means respect Generally more accepting of overt is generated by subtle involvement Subtly of Brand Involvement brand involvement Passion for music means they are Prefer low involvement activity - free more likely to put effort into activity Effort Required from Consumer deals and quick wins Most respect brands that are innovative Appreciate innovation but comfortable and cutting edge in their strategies Innovative Approaches with traditional approaches Brands must show a real Authenticity of Brand’s Entertainment factor is more important understanding of music to earn respect Music Credentials The music often ‘opens up’ the The brand can ‘open up’ consumers to brand if it gets the strategy right. Role of the Brand music. The music is still king but the Music is always King! brand can be the hero Must reflect more niche/ Should focus on mainstream and underground tastes in music Type of Artist popular artists and nostalgia.
- 22. INSIGHT: 8 THERE ARE SOME UNIVERSAL PRINCIPLES OF MUSIC MARKETING THAT ARE TRUE ACROSS ALL SEGMENTS
- 23. INSIGHT 8 – There are some universal principles of music marketing that are true across all segments Cutting edge or mass market music marketing is expected to entertain, Traditionals are happy with a bit of fun. Whist annoying ads can sometimes work, the same leeway isn’t afforded to music marketing. FANATIC ENTHUSIAST CASUAL TRADITIONAL TOP Entertaining Entertaining Entertaining Entertaining CHARACTERISTICS Creative Fun Original Fun WORST Cringe Worthy Annoying Tacky Annoying CHARACTERISTICS Annoying Cringe Worth Cringe Worthy Cringe Worthy And an ethical angle is motivating across segments. Based on question 23/24: ‘Based on what you have seen of music marketing, how would you describe the kind of music marketing that works really well/doesn’t work well at all.
- 24. INSIGHT: 9WHERE TO WE KNOW FIND YOUR CUSTOMERS
- 25. INSIGHT 9 – We know where to find your customers At Sony Music we can use our proprietary segmentation data to match segments with categories and brands Product Purchasing and Brand Usage “Brand X is a brand for me…” G IN SONY MUSIC'S CONSUMER SEGMENTS IN THE UK TH LO S TIE KS C TY EA ILI & FANATICS ENTHUSIASTS CASUALS TRADITIONALS RI UT HA N BR POPULATION SIZE = 5M POPULATION SIZE = 11M POPULATION SIZE = 12M POPULATION SIZE = 16M IO 12% OF TOTAL POPULATION 25% OF TOTAL POPULATION 28% OF TOTAL POPULATION 35% OF TOTAL POPULATION C 31% OF TOTAL MUSIC SPEND 32% OF TOTAL MUSIC SPEND 24% OF TOTAL MUSIC SPEND 14% OF TOTAL MUSIC SPEND RT SH L O 15–21 ES FA HO TS SH M RS ALL INDIVIDUALS THE L.O.L FOOTIE & KE YOUNGSTARZ THE INBETWEENERS POP IDOLS O ...TOGETHER TRENDANISTAS (LIVING ONLINE) PLAYSTATION A A IC LC G C TT EO A 21–24 ER D TIPPING POINTERS C VI N WEEKEND O LIVING IT LIVE I’M WITH THE DJ W.A.G.S WARRIORS 25–29 C COOL WHITE COLLAR CAREER COOL CAREER 30–34 RADICALS GIRLS GIRLS MUSIC KEEPING THE MUSIC WAS MY DREAM ALIVE WASLOVE FIRST MY 35–39 FIRST LOVE ROCK & ROLL FOOTBALL GREAT FEELINGS, GREAT MEMORIES DOMESTIC (YOUNGER) (YOUNGER) TELL ME DOMESTIC WHAT’S GOOD GODDESSES GODDESSES GRUMPY X FACTOR 40–44 (YOUNGER) (YOUNGER) (YOUNGER) BLOKES MUMS D DV RT O / S 45–49 SP LM KS N THE CURATORS FI A N RS TR ROCK & ROLL RI TELL ME DOMESTIC GREAT FEELINGS, PE WHAT’S GOOD GODDESSES FOOTBALL D GREAT MEMORIES 55+ (OLDER) (OLDER) (OLDER) (OLDER) PA S FT IC EASY LIKE SUNDAY MORNING SO S & ET RD S S SM D AG A O G C O ALL MALE GROUP ALL FEMALE GROUP MIXED GENDER NOT ENOUGH PEOPLE TO SEGMENT O C M C IT G FM D LD RE O C EH US HO To find out more please visit...
- 26. INSIGHT: 10MARKETING MUSIC DELIVERS BETTER ROI
- 27. INSIGHT 10 – Music marketing delivers better ROI Example: Kasabian and Umbro campaign Start with the artist DNA to understand the artist and their audience. Kasabian DNA “Fanfare for the common man” Primary segment White Collar Radicals | Age: 25-34 | Gender: 100% Male Category: Enthusiast | Number in population: 1,214,000 Secondary segment Rock & Roll Football | Age: 30+ | Gender: 100% Male Category: Casual | Number in population: 4,660,000 Key Insights – Love football, gaming , gadgets & notice unconventional advertising.
- 28. INSIGHT 10 – Music marketing delivers better ROI The Campaign – The creation of bespoke creative that engages the audience THE RESULTS YouTube views in the first 8 weeks – Main film: 820,000 views Making of: 40,000 views Estimated Media Value – £500,000+ of UK TV value. Plus significant editorial exposure in influential titles such as Wired, Engadget, Gizmodo, Nuts Magazine and Guardian Unlmited. Age ranges for both genders Genders for all age groups 13-17 18-24 Male 84% 25-34 35-44 45-54 55-64 65+ Female 16% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
- 29. In Summary There’s no better The Company – partner than Sony direct access to artists. Music. The Team – Delivering The Insight – expertise, professional available to partners service and ease. to understand and optimise their music for their customers.