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05 Tools Whaam 06-07 Campaigns Sam Smith, Kollegah, , Sony Xperia 08-11 Behind The Campaign Pharrell

JUNE 04 2014 sandboxMUSIC MARKETING FOR THE DIGITAL ERA ISSUE 110

CARRY ON BANDCAMPING COVERFEATURE CARRY ON BANDCAMPING D2F AND SOCIAL GET PEGGED DOWN The unbundling of the album with iTunes and the subsequent move into granular streaming payments could be read as a crisis for artist income and sustainability, especially for small and DIY acts without the sell something through the site. In luxury of a large advance. But a real motor here is D2F sales – and specifically those from Bandcamp. We a month, it’s around 50,000, and last year look at who is doing it right with their artist marketing on the Bandcamp platform and how it is becoming a we had about 160,000 artists selling one or social network in its own right – and one that can fill the obvious gaps left by Facebook. more items through Bandcamp.” Bandcamp’s community has become a social network of sorts, including “fan hen musician Zoë Keating accounts” with profiles for every user that’s published details of her 2013 earnings bought something as well as explorable Win February, most of the media “collections” of their , with their coverage predictably focused on how little comments and mini-reviews if they’ve been she was making from streaming services. posted. Keating made $38.2k from sales on “To me, the key piece of this is that it’s Apple’s iTunes Store last year, then $25.6k a social music discovery system, but it’s from Bandcamp and $11.6k from Amazon. based on this concept of ownership, which Her streaming income was much less: $3.3k is a high-friction concept in contrast to what from Pandora, $1.8k from and $1.2k was the hot thing a couple of years ago, from YouTube. which was frictionless sharing – watch a The real story here was more about movie, play some music and have how much Keating was making on that activity automatically Bandcamp, selling music direct to her go out to your friends fans. It was a reminder that, for artists and followers,” who have worked hard at fostering those relationships, Bandcamp can be a significant source of income.

The progression of Bandcamp find, listen to and share emerging and tells sandbox. “We’re up to $3.1m every 30 $25.6k Bandcamp is evolving beyond its roots as established artists alike. days and our total to date is now $70m.” a D2F sales platform, though: its website But first, that core business of sales. “The He adds, “ We’re about to hit 10m Zoë Keating’s and mobile apps are showing how it has big number for us – our core metric – is how transactions through the site. Bandcamp the potential to become a powerful new much fans are paying artists through the And the other big stat is that every income in 2013 music discovery service too, where fans platform,” Bandcamp CEO Ethan Diamond day, about 6,000 unique artists

2 | sandbox | Issue 110 | 04.06.14 COVERFEATURE

extremely fun to go down. Whenever I’m Bandcamp is driving spend – commuting, I just put on the feed and use real spend it to quickly dig through stuff I would never Diamond also claims that a recent otherwise encounter.” study of around 50,000 Bandcamp users Whereas Bandcamp was initially (examining their buying habits before purely about buying – whether digitally, and after getting fan accounts) found physically or frequently both – it’s that, once they got an account, their becoming more about listening, 600,000 spending doubled – a sign that the social with the company’s smartphone features and music feed are having a apps providing fans with access to Artists who sold real impact on artist income. Of course, their collections on the go . at least one item this is somewhat self-fulfilling as these “People are moving away from via Bandcamp are consumers more liable to spend downloads, although there will always be in 2013 anyway, but this does show how acts people who want the high-quality file they and platforms can maximise the spend of can take offline,” says Diamond. super-fans. “What we’re seeing more and more is “The fundamental fact that Bandcamp is providing access with these fan accounts. based on is that fans want to support the Yes, you get a download, but what it’s really artists they love and our job is to support says Diamond. same thing, though. “It’s very hard to have about – besides supporting the artist – is that connection by giving fans easy ways to “I always felt that idea was completely this experience in a streaming service where getting instant access from anywhere.” express their support,” he says. ridiculous. If somebody listens to a song – I there’s no friction to collecting something. don’t care! I don’t want to know. If they click It’s meaningless. You have to have some to Like it, that’s a little bit more interesting; form of friction there to make it meaningful,” but if somebody feels strongly enough about he says. a record to spend money on it, or more Actually, Bandcamp isn’t anti-streaming. importantly to support the artist that made You’ve been able to stream music from it, and maybe write a little about why they artists’ Bandcamp profiles for a long time like it, then I’m interested.” now, mainly in order to try before buying. And alongside the social additions to the Bandcamp is proving service – including the ability to follow other to be the stealth fans and artists – there’s a Music Feed streaming success feature showing what those people have been buying. The idea of music collections is, of course, It makes Bandcamp a curated streaming as old as physical music itself, and carried music service of sorts. “The feed plays from through into the downloads era. It’s track to track and it kind of becomes a also making its way into the world of personalised radio station programmed by streaming music, with Rdio enabling its the people’s tastes you respect enough to users to build virtual collections for some actually follow,” is how Diamond frames it. time now, and Spotify having recently “We brought that into our mobile app added a similar feature. relatively recently and it becomes this Diamond isn’t convinced that this is the rabbit hole of music discovery that’s

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a small percentage of the fans who clicked on a Like button to receive them. Conspiracy theories abound about Facebook pushing people to pay for ads. But the social network argues that, with an average of 1,500 potential stories from friends and pages available any time a user checks their news feed, it has to find a way to boil that down to (again, on average) 300 of the most relevant updates. It’s a familiar debate, but where could Bandcamp fit in? For those artists using the service, it could become a more reliable way to get their news and new music in front of their keenest fans. Especially if they then own the data on those social interactions. “We’ve even toyed with the idea of limiting it to merch is unfortunate. “This is another thing we’re working instead of having ‘buy now’ maybe we It does seem like an obvious thing on,” says Diamond. “I’ve experienced this should test what would happen if it just says for them to do ,” says Diamond. pain first-hand: we have a huge number of The company is also part ‘support’ – namely here’s what you get if you However, he has some sharp words people who like us on Facebook , but when of a wider cultural shift that’s support the artist.” for the streaming services. “It’s really you do a post to 50,000-odd fans, only 500 $70m happening in the music industry as interesting that you don’t hear from more actually see it.” That said, further details on artists realise that they’re not just More platforms should artists talking about how much they love what Bandcamp is working on are under Total sales via powerless and passive observers be making a Bandcamp that model,” he says. wraps for now. Bandcamp of digital music trends. They can make connection “You hear it from executives at the top He’s clear on the data question, though. to date their own luck, build their own tribes and level of the companies who stand to make “We have felt from the beginning that hustle to build sustainable careers. It remains surprising to sandbox that millions from the artists’ work. That’s a when you follow an artist on Bandcamp, “All of the people who I’ve seen who streaming music firms – Spotify, Beats warranted debate that’s going on: what’s that data – who’s following them – belongs are successful on Bandcamp, they’re not Music, Deezer and the rest – haven’t been good for musicians in streaming?” to the artist. Zoë Keating can go into her unified by any particular genre,” asserts beating a path to Bandcamp’s door to find a Bandcamp account and get all of her emails Diamond. “The unifying factor is that they way of building stronger links from their own Filling the Facebook gap whenever she wants. That’s not something hustle a lot, both online and offline. They services to its community of supporters. we mess with at all.” talk to their fans a lot, they’re constantly Spotify’s merchandise deal with Topspin As sandbox sees it, though, the biggest If Bandcamp has ambitions to become a trying new things and they make that was a step in the right direction, but there opportunity for Bandcamp may be less true social music network – and don’t forget direct connection available.” is a lot more scope for these companies about a comparison with Spotify and how many people have tried and failed – it He concludes, “Where it’s not to forge links with the likes of Bandcamp, more about filling a potential gap being has some work to do. For example, figuring successful is where people say ‘I’m PledgeMusic, Kickstarter, BandPage and left by Facebook in being the platform to out how to lower the barriers to let more using this distributor, my music’s up on other startups that have genuine goodwill keep artists connected to their fans. fans in to its community who haven’t made Spotify and iTunes and, hey, I made this with musicians. On Facebook, it’s no secret that the a purchase yet. In the meantime, Bandcamp Bandcamp page and uploaded the music: “I would love to have that happen: “organic” (i.e. unpaid) reach of pages has has some ambitious plans to continue why isn’t anything happening?’ The key I know Spotify did a deal with been falling, leaving many artists and labels improving its apps which will be made public is providing the opportunities for fans to Topspin to buy merchandise, but wondering why their posts are only seen by in the months ahead. really support you.” :)

4 | sandbox | Issue 110 | 04.06.14 TOOLS WHAAM

companies based in Sweden, the startup has already secured a few interesting users – notably Sony This fortnight we look at Whaam , a new YouTube (all the streams are played within Music Sweden for the Facebook Swedish startup aiming to help music the widget or linked to the relevant desktop page of its playlisting service Filtr. companies improve the online presentation apps), as well as to profiles on Facebook , Filtr’s profile on the social network of their acts through an attractive and and (shortly) Instagram. The widget now has a new tab (dubbed Spellistor) simple showcase widget and a new can then be embedded on any website or handled by Whaam’s Facebook app, Facebook app. linked to in order to provide a press kit of sorts. consisting of a grid-like interface featuring We asked Fredrik Nederby, Whaam’s links to themed Spotify playlists. “We want to give musicians out there co-founder, how the company’s proposition Other music companies using Whaam’s the deserving chance to show more of differs from that of similar services. He products include the Summerburst themselves and promote more of their said that the products of the likes of festival, booking agency SeaWiik Music and music,” says Whaam’s launch statement. BandPage are aimed more towards single the indie label and publisher TEN Music “We want others who write, show, discuss, artists, while Whaam seeks to reach out to Group, which features its artists on its embed and breathe music to have a way to the companies behind various acts. At this Facebook page using Whaam’s app. present a band or an artist as they should point he highlighted the company’s second Whaam’s widget remains free to use and be presented.” product, which has only just been released: the company will soon introduce a paid tier The startup’s Showcase Widget is as the Whaam Facebook App enables users for its Facebook app. Pricing for the latter simple an idea as you might expect: within to transfer their showcases to their has not been disclosed yet, but Nederby a few minutes and steps you design an Facebook pages, again with simple and indicated that, for the time being, the interactive embeddable widget, providing attractive execution. company is looking at this on a case-by-case the artist’s info, image and links to content Although Whaam remains rather low- basis with a view to a model based on the on SoundCloud, Deezer, Spotify, WiMP and profile, focusing initially on reaching out to number of impressions in the future. :)

5 | sandbox | Issue 110 | 04.06.14 CAMPAIGNS The latest projects from the digital marketing arena SAM SMITH’s LIVE OUTBREAK KOLLEGAH SOUNDROPS IT LIKE IT’S HOT

Live streaming of concerts is old We have written about artists using in daily streams from the event and that hat now, especially with YouTube Soundrop as part of their marketing a 44,220 uniques joined the Soundrop room and iTunes stamping their presence number of times in the past – noting how during the day. Fans also sent 11,361 all over the sector in recent years. it’s a good way to engage users within the messages during the event, showing there Live streaming into a TV ad break is, Spotify desktop client and drive streams of was a high level of engagement with what however, another matter entirely and new tracks and catalogue. was happening. is what Sam Smith did in the UK last Even though streaming royalty rates are Friday (30th May) – taking over the German rapper Kollegah is the latest to still being fought over, the fact remains entire 10.45pm ad break during Alan use Soundrop and it is the impact of his that it will be an increasingly significant Carr: Chatty Man on Channel 4. fan chat that illustrates how the platform part of artist income, especially as CD and is growing in importance. Thomas Ford, download income declines. This means The whole initiative was driven in CMO at Soundrop, shared some stats with that artists are going to have to look at partnership with Google Play and “We’re delighted at the success of our sandbox on the event and how it compares ways to drive streams on the likes of production agency The Outfit to promote world-first Google Play live ad,” said Azi to previous chats. Spotify. You can go the Vulpeck route and the former’s digital music offering. Smith Eftekhari from Google Play. “Aside from Kollegah had 11,546 real-time listeners try and persuade fans to stream your was playing at the Roundhouse in London the positive feedback from the millions of during the event – almost doubling (silent) album as a bit of a marketing that night and his show was timed so that music fans that watched it live, we’ve seen a Soundrop’s previous record of 6,069 listeners wheeze and then risk Spotify removing it. his encore, where he played his current really good bump in sales on the Play Store, for a live chat. This helped push his album, Or you can take to platforms like Soundrop single ‘Stay With Me’, could be fed into the which is exactly what we were hoping for. King, to become the second most streamed to boost streams but also foster a sense of ad break. We want this to be the first of many close album on Spotify that week. fan involvement that can be built on over The full live performance was also made partnerships with the music industry.” Ford added that there was a 6.6% growth the long term. available on Google Play after the event for Smith had already been named as the on-demand streaming. winner of both the BBC’s Sound Of 2014 poll and the BRITs Critics’ Choice, so there was a huge amount of momentum (and marketing spend) in the campaign already over the past six months; but the ad break takeover was a global first and all of this coalesced to drive just over 100k sales of his debut album (In The Lonely Hour) in the UK.

6 | sandbox | Issue 110 | 04.06.14 CAMPAIGNS The latest projects from the digital marketing arena MILLER AND MIXCLOUD DJ COMPETITION SONY XPERIA AND SONY UK LAUNCHES #GETRECORDDEAL

Talent competitions are certainly in the air introductions from judges. The winning at the moment. Sony Xperia has launched artist won’t be announced until 18th the #GetRecordDeal competition together August, with fans being able to vote from with Sony UK. 14th July. The overall winner will, amongst other The contest is fairly straightforward things, get two tracks recorded, with one whereby anyone in the world can upload digital single release guaranteed by Sony a video to YouTube containing original Music UK, including full promotion and music through art community platform, PR, with options for an album deal as Talenthouse. well as travel to, and accommodation in, Sony Xperia will, together with guest London. judges, choose a final winner – but It’s certainly a distinctive way to bands also have a chance of winning the promote and market the Sony Xperia app community choice where fans can vote on as well as create engagement with fans Facebook and Twitter. from an early stage. Keeping up with the The community choice includes a price likes of Apple and Samsung is not a simple Miller Genuine Draft has partnered Lawrence at Mixcloud, the competition of $2,000 and promotion across Sony task, but perhaps the contest can help with Mixcloud to create a worldwide DJ had over 400 participants and generated Xperia’s social channels as well as on promote the Sony Xperia brand through competition called Miller SoundClash. hundreds of thousands of listens to the Xperia Lounge. Xperia Lounge, available engagement from hopeful artists eager to entrants’ mixes. on Google Play already, contains tips and get a foot in the door. By submitting 15-30-minute mixes via The EDM genre has been booming in Mixcloud , entrants stand a chance of being the past few years. Recently YouTube picked for a showcase battle in Las Vegas. announced its latest online video guide The top prize is a support slot with, according aimed at the dance sector which covers to Miller, a still unannounced, “global a variety of areas including community superstar” at the Marquee club. Additional development, creating playlists and driving prizes include an all-expenses-paid VIP trip purchases among viewers. FBi Radio station as well as a DJ Mag profile and trophy. in Australia also recently announced the The entrants must get at least 100 plays launch of FBi Click, a 24-hour digital station of their mix to be considered by the panel with a focus on electronic music. The recent of judges in order to pass through to the huge success of Swedish House Mafia, next ‘battle’ level. Mixcloud has been an Skrillex, Calvin Harris and Deadmau5 have all important community for DJs for some been part of making the genre popular and time now and was approached by Miller shows a shift for dance music from a niche to activate the SoundClash concept at a (albeit significant) genre to now being part of global and a local level. According to Ben the mainstream.

7 | sandbox | Issue 110 | 04.06.14 BEHIND THE CAMPAIGN PHARRELL BEHIND THE CAMPAIGNPHARRELL

Daft Punk campaign Christo] from Daft Punk and told them was the starting pistol that I’d met Pharrell but couldn’t believe Prior to March 2013 [with I sang him those two songs and he was ‘Get Lucky’], this was an acting like he had no recollection of them. artist who was in a very They said that was understandable as different place musically. he’d never heard the song. He had not I met him in January 2013 heard the song! He got to the studio at a Solange show and we jetlagged, had an energy pill and started had just signed him to the spitting out the lyrics never having heard label. We were well into the song until the guys actually played it the Daft Punk campaign, to him the week after I met him. behind the scenes, and I was The Daft Punk campaign started in singing ‘ Get Lucky ’ to him earnest in March with the marketing and he was like, “Nope! No campaign – but the reveal that Pharrell recollection!” I thought it was on the song did not happen until Pharrell had three of the biggest songs was because I was a terrible Coachella which was in the second week of 2013 – as guest vocalist on two and singer so I sang ‘Lose of April. Then there was ‘ Blurred Lines ’ lead vocalist on the other – that helped Yourself To Dance’ which came about around the same time. position him as a solo act and not just a and he was like, So there were these two tracks that ran super-producer and member of N*E*R*D. “Nope! Doesn’t parallel with each other and became the was bigger than ‘Blurred Lines’ and ‘Get The runaway success of ‘Happy’ meant ring a bell!” songs of the summer featuring his vocals. Lucky’. the release of his second solo album, G The next day It all exploded from the 24 Hours Of I R L, had to be brought forward several I met Thomas The slow burn of the Happy video. That made a lot of DJs go months, making digital a key component [Bangalter] and Despicable Me 2 soundtrack back and fall in love with the song. That in this swift turnaround. Scott Greer, Guy-Manuel [de At the height of those two songs [‘Get is testament to the ability of a visual Columbia’s SVP of marketing, explains Homem- Lucky’ and ‘Blurred Lines’] there was to change the complexion of an album how a 24-hour video, major brand a blockbuster film, Despicable Me 2 , campaign and a song. partners and the United Nations’ released which had the song ‘Happy’. The video was an idea that he International Day Of Happiness It was on the soundtrack which was had developed with the director. His elevated this far above a run of released through an arm of Universal goal was to do something that was the mill campaign – even if he Pictures. At the time it was just glossed groundbreaking and refocus the song in couldn’t remember recording over and didn’t get any traction. I’m not front of the audience. It was premiered ‘Get Lucky’. sure why. I guess it wasn’t worked as a at 24hoursofhappy.com so as a viewer single; it was worked as a companion to you could pick your hour and watch the the film. It is fascinating to think performance. There were cameos from how big that song became. It people like Kelly Osbourne, Magic Johnson and Odd Future. There was always a chance for discovery at every point [where people looked for the cameos]. It took a little bit longer in the US [to take off]. The UK and Europe were way ahead with it – as was Australia. Then

9 | sandbox | Issue 110 | 04.06.14 BEHIND THE CAMPAIGNPHARRELL it picked up in the US. It was completely three different media campaigns featuring organic. In the US it started gaining that song. He also performed at the traction at the end of 2013 and into iHeartRadio Awards, The Voice and Jimmy January when we went to radio with it. Kimmell. The resulting sales impact was As we saw that gain traction, we that the single was up 250%. struck a deal with Universal Pictures for the song. Awards season, Coachella and It naturally became the first single pulling the album release forward from the album. In the past year he was ‘Happy’ was only getting started at US working on finishing the album, but with radio when the Grammys happened. Then the demands on his time and the success there were the announcements about the of ‘Blurred Lines’ and ‘Get Lucky’ – as Oscars and that he was going to perform well as being asked to produce tracks – it there. Then the song was at #1 on iTunes became quite a challenge to finish the and with all this profile he couldn’t be record. As that started to heat up, it was any hotter. If he couldn’t get any hotter full speed ahead to finish the album. we knew we had to finish the album and get it out. In a short period of time we Major brand partnerships took it into the assembled the album, heart of the mainstream finished the packaging In January in the US we had the and decided we were advertising campaign for the Beats Pill . going to release the So alongside this organic traction album the night after online for the video, we also had a the Oscars. He had a high-profile TV campaign that he huge global platform to appeared in where they replicated launch his album and the ‘Happy’ video . There was also the connect the dots back Fiat campaign that P Diddy appeared in to ‘Happy’. that used the song. Then also in January There was a it was announced the song had been strategic move by Rob nominated for an Academy Award. All of Stringer, our chairman, this organic momentum was happening and he wanted to and it culminated in his multiple wins make sure we were at the Grammys. That was like his maximising the global heat around this connection into homes in America. artist – and to launch the album off the In March, Red Bull used ‘Come Get It back of that. Bae’ for its spring TV campaign. The song He had not performed a full live set is also used in a Uniqlo campaign that until Coachella. He was very visible in Pharrell is tied into. We also worked with terms of doing TV and radio interviews TNT, the network that carries the NBA and other promotion globally. The playoffs, and shot a clip of him singing challenge was how we connected all ‘Come Get It Bae’ that is cut in with the this visibility around Pharrell and drew NBA basketball footage. So there are attention to the album – connecting

10 | sandbox | Issue 110 | 04.06.14 BEHIND THE CAMPAIGNPHARRELL the dots to the album. The album was The UN’s International Day Of Happiness announced 17 days before its release. In January when we were talking about How do you use those 17 days before the what we were going to do with the album to connect the dots to all those campaign we discovered that there was people globally who had grown to be a fan an International Day Of Happiness – a of Pharrell? specific day that was sponsored by the Based on his schedule, there was United Nations. no time to tour. Coachella became the We thought we should have Pharrell big moment where he put everything as the ambassador for the official together in terms of a full set. International Day Of Happiness. I went He performed a 12-minute medley at to the UN and discussed ways we could the NBA All Star Weekend in February collaborate. They were thrilled with the where he had a number of the guest idea and I worked with the UN Foundation artists who appeared with him in the to raise awareness of the charity past like Nelly, Snoop Dogg and Diddy. organisation. That showed the audience that We set up a webpage for people to might have only known ‘Happy’, ‘Blurred participate in the official International Day Lines’ and ‘Get Lucky’ that he was an Of Happiness [on 20th March] and got artist who had a great deal of depth fans to post videos from around the world to his career with a huge number of celebrating the day. We went through the hit songs. such that when it came out the second Social and viral selfies time zones and had fans post their videos half of the opening week’s sales actually Because we had a short window of time in their particular time zones. iTunes pre-release stream of the album increased – and increased physically in to promote the album, it was about As we went through all the time and the absence of windowing the US. It went beyond the initial forecast connecting the dots from ‘Happy’ to the zones in the world we gathered up A week before release we launched the of what we were hoping to sell in that first album. The album cover played a role in clips that were submitted and created album stream on iTunes. As people were week.” that – and in the most simplistic way. a super-‘Happy’ video. It was like buying what was the #1 single on the Since that first week when digital The Australian label started posting the unofficial UGC version of ‘Happy’ iTunes chart there was an opportunity to sales were 62%, sales have sprinted selfies of themselves and fans in that ended up being a 12-minute dig deeper and discover his body of work. physically to the point where they are now robes [like the album cover]. That video with the brilliant clips from At the time we were selling over 60% physical. is the beautiful thing about around the world. It raised a couple of hundred thousand My goal is to get the album spread as marketing these days – it goes awareness for the singles a week so you had all of widely as possible to where people are global on music. That spread UN’s causes and also these millions of people coming consuming music and however they are around the world and people raised some money. to the store to buy Pharrell so consuming music. started posting selfies of There were 250m it was a great way to expose the That communication level where themselves in robes. impressions on that album. people are sharing it – whether they Pharrell and his team day alone. :) It was a natural progression – especially are social or Spotify or social on Rdio picked up on that and with the short lead time from announcing or making playlists on Beats – is an reposted them on the album to being able to hear it. important part of the word of mouth Instagram. It was a great Strategically it made a lot of sense as around how music is passed along and it way to create a fan- there wasn’t a huge lead in. creates that organic virality. activated campaign that ”The word of mouth on the album was Pharrell acknowledged.

11 | sandbox | Issue 110 | 04.06.14 ABOUTSANDBOX

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12 | sandbox | Issue 110 | 04.06.14