The ROI of Music
‘Authenticity’ is now the name of the game in business.
There was once a time where companies that built good products and had the correct traditional channels to advertise through saw success. But nowadays, just having a good quality product isn’t enough. It is content that is authentic, that tells a story, and that is distributed at the right time to the right audience which converts. Traditional distribution channels such as TV and print are becoming obsolete. As conscious consumers have gradually become more allergic to traditional channels and advertising, inauthentic and cookie cutter digital messaging are also suffering a decline in efficacy.
Of course, music sponsorship has always been a way to gain brand awareness at big time events like Coachella, EDC, Warped Tour and the like. But marketers have to ask themselves, while its probable and predictable that some conversions may occur at these events, is putting an activation onsite the most effective way to engage and then track consumer behaviors?
The real questions are:
- Does the messaging evoke an authentic response or behavior from the consumers?
- Is there narrative?
- What kind of sentiment does our message leave with the consumer?
- How does one track real time behaviors and engagement?
Also, while the heavy hitter superstars will always form partnerships with big brands for endorsements through traditional channels, emerging artists will be increasingly relevant given their highly engaged ‘early adopter’ fanbases and drive to push their careers forward.
It is more vital than ever in todays age for brands to remain authentic and transparent in their messaging. We all saw what happened when Pepsi compromised their own integrity of their messaging.
Now think about the state of the music industry.
According to the NY Times, “In 2006 — years after Napster, and well into the iTunes era — record labels still reaped $9.4 billion from CD sales in the United States, more than the total sales revenue of the business today. Last year, CD sales stood at just $1.5 billion, a drop of 84 percent in a decade.” Streaming and other revenue sources, while growing, have not taken up the slack in any commensurate with the loss.
It’s obvious that massive reforms are necessary to keep these starving artists alive and allow them to do what they came here to do, make music.
That’s where brands come in.
Nowadays, brands and open minded marketers with an experimental marketing budget have the ability to be a record label.
A genuine, transparent, authentic brand/artist partnership can drive emotional engagement, create good brand sentiment , and turn fans of bands into fans of the brand while simultaneously helping advance the careers of artists.
When an artist advocates for a brand, in their own words, through their own social channels to their own fan base, and is transparent in the fact that the brand is paying them money and thus supporting the arts, it becomes a potent channel for brands to reach new audiences.
Brands are now in a position to help mix the artists next record, pay for their tour, rent them studio time and give them the necessary resources so that they can live and continue to give their fan bases what they want, more music.
Could it be that this is the reformation the music industry needs?
BYGMusic works with brands that are looking for a new layer of storytelling to their messaging by executing multi artist social media campaigns that result in emotional engagement and tangible ROI. By providing the necessary infrastructure and robust data needed, brands can now measure their media spending effectively.
Schedule a time here for an exploratory call to learn more.
BYGMusic Brand Partnerships