A report that examined the role that music plays in social media says that the same digital technology that changed the music industry will have a similar impact on advertising. Heartbeats International, a Swedish marketing agency, strongly recommends that brands replace traditional advertising mindsets that focused on the 4 P’s (price, product, placement and promotion) with the 4 E’s (emotion, experience, engagement and exclusivity).
Music is digital and mobile now, and that means more people have access to more music than ever before. The study found that most people now listen to music on an average of five platforms, including pc’s and mobile devices. The number of hours per day that they are listening is growing, and 2 out of 5 people have music as part of their social network profile.
The study recommends three ways that brands can integrate music into their digital marketing strategy. The “Association” strategy creates a connection between an artist and an audience, as Bacardi did by signing a “record deal” with British electronic band Groove Armada.
The “Involvement” strategy gets fans involved with music – as Intel did with its remix competition, which resulted in 19,000 people becoming fans of Intel on their MySpace page. The “Exploration” strategy calls for brands to sponsor music discovery platforms such as Duracell sponsored Ramp Music.
There’s a lot of sense in this study and the recommendations. Social media, music and advertising are made for each other. Internet radio stations should focus on creating offerings that merge the needs of consumers and advertisers around music.
News Corp owned MySpace will purchase independent online music service Imeem, in a deal which is reported to be $1million in cash. Imeem has been in financial trouble for a while, and has run through an estimated $30million in investor dollars.
Among the investors, all four major record labels, although earlier this year Warner Music wrote off its investment in the service. In 2007, Imeem became the first ad supported on-demand online music service to negotiate deals with all four major labels. Those deals included equity which made partners of the four major labels. MySpace also has partnership deals in place with the four major labels.
A few months ago MySpace acquired online music service iLike, with 50 million registered listeners, for a reported $20million. Comscore estimated that Imeem had 16 million unique visitors in September. It’s impossible to compare these two numbers except to say that it doesn’t sound like Imeem is a lot smaller than iLike to me.
MySpace now owns two of the five online music services that announced partnerships with Google’s new music platform. The way that works is that Google drives traffic to partner sites who play the music and pay the royalties.
Recently Spotify delayed their US launch due to problems negotiating a license for ad supported on demand streaming with the record companies. Plug that info into the fact that Imeem was about to get acquired by MySpace for so little, and it’s easy to understand why Spotify is meeting with some opposition. Seems like the record companies want to limit their exposure on the ad supported revenue model…