See Things Differently
Having worked in both music and non-music sectors, a key difference is becoming apparent. Music companies, and I include promoters as well as record labels, place virtually no value on Engagement. Which is strange when you consider how relatively easy it is for them to get.
What I mean is, other industries will pay for the acquisition of site registrations, requests for information, mailing list sign-ups or referals. But ask a label or promoter and the only thing that matters to them is whether someone buys a CD or ticket. There seems to be no acknowledgment of the role engagement plays.
When I did sales we learnt about AIDA – Attention Interest Desire Action. To gain a customer you were required to guide them through the four stages. But the difficulty for a marketing agency is what little value labels and promoters put on each of these.
If I can get you a Facebook fan what is it worth? Or a mailing list sign-up, a MySpace friend or a YouTube play? In other non-music sectors I get paid for this, but in music it appears to count for little.
A major problem is that labels and promoters have to share the Lifetime Value (LVT) of a fan. If my marketing gains the artist a fan they could either spend their money on a CD or a ticket. In which case, neither the label or promoter will pay so the other gains. So neither pays for engagement, only the end sale.
Which leaves the artist.
Will they pay me to acquire fans by arousing attention, interest & desire?
Actually, the more accurate question is, will their management?
Most managers are adept at bringing in revenue, never paying it out. For artists to benefit from digital marketing they must realise that engagement is worth paying for.