John Mellencamp, Vanity Fair, Radiohead and Targeted Marketing

Friday, July 11th, 2008
John Mellencamp
John Mellencamp, free songs via Vanity Fair

Thinking about social advertising and targeted marketing perhaps we should take a leaf out of the book of the rock stars. The biggest story last year in the music world was how Radiohead bucked the recording industry’s distribution and marketing system and gave away their new album. The short story is that they simply told their fans that they could go to a Radiohead web site and pay whatever they liked to download the album, with $0.00 being an acceptable amount. It was an extremely successful campaign - not only did most people pay for the files but the band received unprecedented amounts of positive media coverage around the globe.

Other bands have followed the model not least Trent Reznor and his band Nine Inch Nails. The band released a limited edition 2,500 units of a coffee table book that included multiple CDs and DVDs. It was exquisitely packaged, signed and numbered and cost $300.00. It sold out in two days.

I believe this form of social marketing could serve as a model for companies that have customers who are literally fans of their products. And I don’t mean Apple.

If we think of the bands mentioned above as companies that sell product then we can take a look at what these companies have been doing to increase sales of their product. Here’s what they do online:

01. They have blogs to which actual band members [think executives] post regular updates.
02. They ensure that the blogosphere is alerted to any new and breaking news or important posts.
03. They offer early access to special offers and discounts for their customers loyalty.
04. They give away free samples of their product.
05. They are active in their customers communities.
06. They never push unwanted messages to their customers.
07. They ask their customers to interact directly with their product through competitions.
[Both Radiohead and Nine Inch Nails had remixing competitions where they made tracks available to their fans for that purpose.]
08. They allow sharing of their products amongst a community.
09. They work closely with influencers.
10. They openly discuss their problems with their customers and allow negative comments to remain on their blogs.

Number 11 in my list would include the fact that they have dedicated staff working on this online communication 24/7.

These “companies” also use printed media to their advantage too. John Mellencamp has hooked up with Vanity Fair magazine to get two free song downloads into the hands of his fans. This is a win-win for both parties. Here’s the link if you fancy grabbing the songs.

John Mayer and Blackberry, an Intelligent Use of Sponsorship

Monday, July 7th, 2008

John Mayer Summer Tour 2008

It’s not often I come across a major musical artists’ web site and find that I can say to myself - “these guys got it right.” Today I visited John Mayers site and although I’m not a fan of his music the site is a great example of how to get the message across simply and elegantly while giving his fans the ability to interact on many levels. The tie-in with Blackberry is genius too. The Blackberry micro-site just spreads the Meyer messaging and interactivity far and wide by offering exclusive Meyer content - audio, video, pictures and more.

John Mayer
John says “hi.”

John Meyer has a blog and he seems to use it, at least I hope it’s him because the most egregious offense is having someone else blog for you. I’m going to keep checking back on this one. In fact there are multiple blog links on the home page. This one is written by “Scotty” who may be in the band or may be the T-shirt vendor, it’s hard to tell. The blog focuses on the new T-shirts - “A collaboration with Loomstate - a completely organic, sustainable tee. Very limited… We only made 587 of the shirts, each hangtag is hand-numbered.”

And there’s even a place to send in your encore requests for the shows you’ll attend. Customer happy time I reckon. And client happy too, Blackberry made a wise choice sponsoring this musician.

Credit: Mayer web link found on the Mediapost blogs.

Music and Brands, Proctor and Gamble

Monday, July 7th, 2008
Music Sales Down

The news today is that Proctor and Gamble is getting into the music business. Just as Starbucks is going in the opposite direction and exiting the CD sales business, more brands are jumping in to fill the void left by the collapse of the CD retail store business. Music sales in the UK were once again down 11% over the same period in 2007.

For the labels, attention from product companies is a good thing. I see the logic here. CD sales are plummeting and online sales are not filling the void, a company comes along that wants to license the record label’s music to promote a brand and it appears that a match has been made in heaven. Rhianna had a lot of success this way working with Totes Isotoner to help them improve sales of umbrella’s. Umbrella was the title of her hit song, I wrote about her arrangement with Totes here.

Proctor and Gamble, and other companies using music to promote their brands, are jumping in deeper though:

“At a time when online file-sharing is rampant, record stores are closing and consumers are buying singles instead of albums, getting into the music business might seem like running into a burning building. But as record labels struggle to adjust to a harsh new digital reality, other companies are stepping up their involvement in music, going far beyond standard endorsement contracts and the use of songs in commercials. These companies — like Procter & Gamble, Red Bull and Nike — are stepping outside of their core businesses to promote, finance and even distribute music themselves.”

I believe all of this extra-curricular activity by these brands may pay off for them in the long term. The music fan has shown her willingness to buy music online although only singles, not albums. Album sales are no longer the preferred format. The labels created this nightmare for themselves when they scrapped the single as a sales format. They blamed their losses on file-sharing online but they ignored their own disastrous moves in the market place. They weren’t listening to their customers. And then they began to sue them. Even Apple can’t persuade music fans to buy albums.

There is a lesson here though and it is one that Starbucks learned the hard way. Brand and product companies should not get too deep into the music sales business. The P&G deal with Def Jam may work well as it is a joint venture where presumably each side does what they do best - Def Jam runs the label side, P&G markets its product with Def Jam music and pays for everything.

I discussed the following issue in a recent post: To the music fan music becomes cheapened by being used as a commodity to sell products. The artists behind the music have their celebrity enhanced and they then go on to use their brand to sell more products. Music fans understand that music is now a commodity and refuse to pay for it. The music industry and the artists both complain that no one pays for music and to account for the decline in sales accuse us of stealing it online. The commodity is over-priced; no one is buying it.

Unless you are a brand with a product to sell.

Anita Elberse disputes Long Tail Theory, Harvard Business Review

Wednesday, July 2nd, 2008
Long Tail

I’ve been a proponent of the Long Tail theory since stumbling upon Chris Anderson’s blog of the same name. Reading the book affirmed some thoughts I’d had about how certain niche products found a life online that they most certainly would not have found in a regular bricks and mortar retail outlet.

Granted, because of my background in online music distribution the theory immediately appealed to me. I saw it as an idea that would help unlock the gatekeepers stranglehold over the discovery of music either as CDs or legal music files. Those gatekeepers being terrestrial radio, the record companies and online music retailers such as iTunes who wrapped their music files with DRM.

A simple explanation of the Long Tail theory is that the internet gives us unparalleled access to more products across the “tail” and doesn’t just expose us to those mass products at the “head.” It suggests that people are willing to search and pull a song from say, Tortoise, an alternative music outfit that sells modestly, rather than sit back and be bombarded by iTunes trying to sell them, or push, a song from Coldplay. As the theory goes, Tortoise could make a living selling its music vertically in its slice of the tail.

Like any good theory it is open to question and discussion. This is where Anita Elberse steps in with her article in the Harvard Business Review entitled ‘Should You Invest in The Long Tail?’ Meanwhile Chris Anderson has been gracious enough to accept the challenge to his theory by responding to it on his blog.

I need to spend time with the article as it is not only lengthy but includes a lot of data and links to sources, as well as concluding with advice to different businesses on how or not to include the Long Tail in their marketing efforts. Anderson’s responses will take some digestion too. Perspective and insight is required before comment. That’s why it’s frustrating to me that people like Lee Gomes of the Wall Street Journal’s Portals column has jumped in gleefully accusing Wired magazine [where Chris Anderson is Editor-In-Chief] of having a “template” where they “take a partly true, modestly interesting, tech-friendly idea and puff it up to Second Coming proportions.”

Gomes is of course allowed his opinion of Wired magazine articles but I wonder if he has really had time to read and digest Elberse’s paper as well as study Anderson’s responses. It’s also odd that he blames bloggers for “talking up the theory, which is no wonder considering how it held out the promise that even the most obscure among them could win a robust audience.” As a columnist for the WSJ he has been happily debunking the Long Tail theory since it inception as he did in this article from July 2006. Is he more fearful of the Long Tail theory or of the bloggers who may gain audience share along the tail away from the WSJ head?

Whatever the outcome of the debate between Elberse and Anderson I doubt that there will be immediate agreement on the benefits or not of the Long Tail. One things for sure, it is way too soon to be joyfully jumping upon its supposed grave.

Dave Allen, Director, Insights & Digital Media, Nemo Design

On cities, hives and human clusters

Sunday, June 22nd, 2008
Tower of Babel
The Tower of Babel

Cities live and breathe. As I wrote in a post last week on Social Media, cities are no more artificial [technological] than the hives of bees. As we go about our daily lives [mostly unconsciously,] we psycho-drift from block to block through neighborhoods that we know well, in amongst communities that have been drawn together by like-minded people. Think East Village in Manhattan, Venice Beach in Los Angeles, Camden Town in London, Pigalle in Paris - and here in Portland, the Pearl District.

Where we tend to live and work is often amongst communities of like-minded people, unless, as in the USA, one lives in a far-flung exurb and commutes for hours to work. Over centuries we have moved as a species from the rural countryside into large urban centres. As we have done so the ‘idea’ of the city sprang up. Throughout different periods in history, planners and architects have had differing ideas about how to cultivate urban living arrangements. There has been some success and much failure.

As James Kunstler writes in his book, The City in Mind, - “[the] nation’s massive suburban build-out was an orgy of misspent energy and material resources that squandered our national wealth and left us with an infrastructure of daily life that, left as is, has poor prospects in the new century.” Kunstler points out that as global warming, oil depletion and other epochal disorders are upon us, we must reconsider what is a ‘city.’

He argues that one of the chief side effects of the move to suburbanism is “the cultural destruction…especially the loss of knowledge, tradition, skill, custom and vernacular wisdom in the art of city-making that was thrown in the dumpster of history….”

A city is not just a series of streets and avenues with buildings on either side, a city is people, culture, society and the networks that form to bind those societies together into communities. The suburbs were literally a dream, an idea that General Motors had of a drive-in utopia in its plan for a World of Tomorrow. Kunstler goes on to point out the folly of the “Edge City,” a term coined by the writer Joel Garreau. Kunstler says “I essay to show how Atlanta took the urban model of car-crazy Los Angeles to its most ludicrous, and in my view, terminal stage. With Atlanta, you can forego agonizing over the future, because the present doesn’t even work there.” As he points out “our human ecologies - namely our towns and cities - remain devalued, depopulated and decivilized.”

In America we prefer landscape over urbanism. What then now as our dependence upon oil, refined as gasoline for cars that transport one person at a time from these suburbs to the cities, proves the folly of these far-flung suburbs? Will we see a move toward urban vitality? A migration back to the city?

Government spending at any level, state or local, does little to help. We need to “nurture the unplanned civic engagements that make mixed-use city life so appealing” - writes Douglas Rae, the Richard Ely Professor of Management and Professor of Political Science at Yale University, in his book, City; Urbanism and Its End. “Small scale retailing, neighborhood clubs, informal enforcement of sidewalk civility and new urbanist design may be the keys to the future.”

I agree with Rae on the idea of “nurturing unplanned civic engagements” as he puts it but that’s as far as I would go. The rest of his thought sounds like the issue of we humans being in control of our destinies again, trying to have the answer that is beyond nature, beyond what we actually do when we congregate in cities. Our desire for urban centres always seem to be about ‘order’ or ‘cleanliness’ and ‘organization.’ So on one hand we have the thinkers - the planners and the architects, and on the other - the citizens who actually inhabit the space that we call city. What we might call the ‘Few and the Many.’

Alongside a piece by the New York Times film critic, A.O.Scott, called Metropolis Now, where he writes about the idea of how yesterday’s film sets became today’s cities, there is a sidebar that takes some lines from Fritz Lang’s 1927 film “Metropolis” - “The minds that had conceived the Tower of Babel could not build it. So they hired hands for wages. But the hands that built the Tower of Babel knew nothing of the dream of the brain that had conceived it. One man’s hymns of praise became other men’s curses.” There’s that word again, dream.

We humans dream. We dream of controlling nature, we dream of saving the earth, we dream of organizing our cities. Those dreaming deny the fact that cities live and breathe. Not the concrete architecture, not the buildings - the people that inhabit them. When someone talks of Rome having a ’soul, a feeling’ they are misinterpreting the difference between the city and its cultural makeup; people can be said to have souls and feelings, we ‘know’ this - buildings don’t have soul and feelings.

As Fernando Pessoa writes - “Only if you don’t know what flowers, stones and rivers are can you talk about their feelings. To talk about the soul of flowers, stones and rivers, is to talk about yourself, about your delusions. Thank God stones are just stones, and rivers just rivers, and flowers just flowers.” We dream and we delude ourselves.

Richard Florida, author of The Rise of the Creative Class dreams of organizing urban centres [which he correctly identifies as 'place'] around the idea of a mythical “creative class” who are bound by the idea of the “three T’s,” Technology, Talent and Tolerance. This dream involves cities having a strong technology base, a “creative” class as he calls it, and a strong gay community. And of course the idea he spins is that to grow a city’s economic base it should invest in nurturing the “three T’s.” Once again - The Few and the Many. Planners and architects can no more decide what a city’s culture will be than we know that a stone has feeling.

The fabric of a city is its population. Like a bee hive [architecture] or an ant colony [social network], natural rules of engagement spring up through the daily interaction of those who inhabit a city. They commune. They gather in tribes in their ‘places.’ They share information, ideas, things they like. They become less ’selfish.’ They are city.

As John Gray writes in Straw Dogs - “Anyone who wants to escape human solipsism should not seek out empty places. Instead of fleeing to the desert, where they will be thrown back into their own thoughts, they will do better to seek the company of other animals. A zoo is a better window from which to look out of the human world than a monastery.”

Most large cities have a zoo.

Listen to and download Psycho Drift. Shriekback - Psycho Drift

For references - (more…)

My day in the Philosophy Dept at the University of Oregon discussing Gang of Four

Thursday, June 19th, 2008
Gang of Four Damaged Goods EP
The back cover of the Damaged Goods EP

On June 18 I spent an afternoon with the University of Oregon’s philosophy department class presenting a talk on Gang of Four and our place in the “creative, potentially transformative popular music pantheon.” It was fun. As a band our achievements are well known, mainly in critical circles, but also from the few thousand passionate hard core fans who continue to hang on dearly to their vinyl copies of ‘Entertainment!’ For a band that didn’t sell very many albums we continue to draw new listeners and thought leaders to our music. Hence the invite to speak today.

It was fun taking questions from the students, and very good questions too, about our lyrics, our political stance, how we messaged through our music. We also discussed where music is going and how will musicians be able to make a living. The students appeared to take to heart my idea that musicians are no longer in the music business, they are in the T-shirt business.

As I researched for the talk I came across the Damage Goods EP ripped from vinyl and made available as a download along with a hi-res file of the back cover. 30 years ago, on June 28th and 29th 1978, in Cargo Studios just outside Manchester England, the original Gang of Four line-up recorded the EP. Two days, live recording, minimal overdubs, recorded and mixed. Three songs - Damaged Goods, Armalite Rifle, (Love Like) Anthrax.

It’s amazing to listen to today [the students loved it.] The disarming, sprawling charm of the non-production stands out. Performed basically live this version of Damaged Goods seems now perfect - unhurried, raw, prickly guitar, Jon sounding like he’s just yelling in a room. I’m glad I never trust my memory.

Dave Allen, Director, Insights & Digital Media, Nemo Design

Gang of Four - Damaged Goods (EP version 1978)

Damaged Goods 3 song EP Click, right click or control click to download. It’s a 12mb zip file and it includes a hi-res back cover image.