Sandbox MUSIC MARKETING FOR THE DIGITAL ERA Issue 72 | 31st October 2012

Email RIP: is inbox marketing heading for the trash? INSIDE… Lead Emails used to be like gold PAGEs 1 - 5: dust – a direct link and Email RIP >> marketing channel to fans. Campaigns The rise of Facebook and PAGEs 6 & 7: Twitter has seriously dented The latest projects from the its power of immediacy digital marketing arena >> and the fact users can give Tools secondary email addresses PAGE 8: is negatively affecting its Facebook targeted posts >> credibility. Does it still have Interview a place in digital marketing and are there things it can PAGEs 9 - 11: still do that leave push Tamara Roukaerts – head of notifications and tweets marketing, Aurasma >> choking on its dust? Charts Over the past few years the idea that email is PAGE 12: dead for marketers has been slowly gaining Digital charts >> currency. The thought is part of a wider mode of thinking, espoused by everyone Issue 72 | 31st October 2012 | Page 2 continued…

from the Wall Street Journal to Facebook is email’s very success as a communication accessed by mobile devices. Even worse, 14% And it’s not just the cost of sending email that founder Mark Zuckerberg, which holds that tool that could lead to its downfall: we of teens compare email to the postal system, marketers must take into account: there’s email as we know it is looking out-dated as get so many emails nowadays that their which 5% of them already consider dead. also the cost of maintaining the email list, a mode of communication when faced with effectiveness is massively reduced. getting rid of unsubscribers and pruning out the instant charms of social media, instant The cost issue: is email marketing pouring dead email accounts, compared to the self- Most email users, when faced with a bursting messaging, push notifications through apps regulating world of social media, when fans inbox, will skim their entries first, deleting money down the drain? et al. themselves can sign up to follow artists and any mails that don’t look of particular interest Then there is the expense of email to then leave on their own account. As a widely influential Wall Street Journal then only go back and read their messages. consider. This might sound ridiculous for article from 2009 explains, “In August 2009, This is bad news for any promotional email, anyone who grew up in the early-Nineties Will email cut through the noise? 276.9m people used email across the US, which stands a good chance of being when the physical postcard through the several European countries, Australia and ignored, no matter how loved the artist is. mail – with all associated postage costs – So why, then, with all this considered does Brazil, according to Nielsen Co, up 21% from Even worse, your email could get caught was the preferred means of communication the music industry at large still consider 229.2m in August 2008. But the number up in the spam filter or go straight to junk, between record company/artist and fan. And, email as a vital part of the marketing mix? of users on social-networking and other condemning it to a slow, unread death. of course, an email marketing campaign Atlantic Records UK social media manager community sites jumped 31% to 301.5m Nick Long explains, “We’ve always been big Even worse for the youth-obsessed costs nothing like a postal campaign. But people.” Email, in other words, is still growing advocates of email marketing and still see it music industry is the view that teenagers there are still associated costs in using the but new services that are quicker, more as very central to our overall mix.” have of email as an outmoded form of right software (like MailChimp or Contact), as attractive are outpacing it and – dare we say well as for template design, copywriting and communication. A recent survey of 167 It’s simple: emails sell. Or, rather, emails are it? – sexier. reporting. teenagers from email marketing specialist far more likely to spur recipients into action AWeber found that 15% of them think email is Indeed, Aftermarketer Club The risk of the email avalanche dead or dying (compared to 44% who believe estimates that a monthly email Of course, the idea that email is dead may it will live on), with email seen as a “grown up campaign for 5,000 to 10,000 sound ridiculous when you consider the thing” by 14% of correspondents. subscribers will cost anywhere number of people who use it and the volume The findings were not all bad – 21% of between $65 and $100 a month of messages sent every day: there are respondents said they would probably use – no massive amount but still currently an estimated 2.9bn email accounts email more in the future, while 20% said far greater than the cost of a worldwide, a number predicted to reach email and social media complement each promotional tweet. You could do 3.8bn by 2014, while in 2010 the average other; but it is hard to escape the image of email for less, of course, but you corporate user received more than 200 mails email as some fusty old man waiting around risk being disregarded or coming per day, according to services company Atos. for death when 29% of teens say that email across as spam by consumers who expect a certain quality in their These, you might think, are hardly stats that is “formal”, 57% state that email is popular promo emails. speak of an ailing medium. But perversely it with business and 23% think email can’t be Issue 72 | 31st October 2012 | Page 3 continued…

than tweets or push notifications and this can party services. There is a big infrastructure content and that allows fans to return to the from Twitter or Facebook. “You can track and go as far as leading them to buy. investment but it is part of the back-end information more easily than, say, a tweet.” get much more information about fans. You systems that are reusable.” can really segment things and give people “People two or three years ago were focusing Lane concurs, explaining that he aims to what they want, you can really deliver what on social media, likes, tweets and so on but He continues, “It is more expensive than get an impressive 35-45% open rate with his they would like to have or see or get,” says Le as soon as you are speaking about direct sending a tweet but with email you can promotions, although this may depend on Comte. sales, album pre-orders it is always email,” quantify what the return is, for example in the quality of the list itself. explains EMI UK CRM manager, Jean- open rates, clickthroughs and getting people He adds, “You can get information from the “The big driver of that is the fact that if Baptiste Le Comte. “We have done a lot of to buy things or watch things.” sign-up, it depends on the results and the people sign up it is because they are really studies and surveys which have found that data you ask for. But usually we try to get interested in the artist or label,” he says. “For the conversion rate is so much higher for a Email separates dedicated fans from basic information, their name, country, email, our lists we like to try and get somewhere database with email.” you can then send surveys further along the casual ones between a 35% to 45% open rate. That project lifetime, asking about their consumer Domino head of digital Kurt Lane agrees. “We But why should email be better at driving depends on the size and quality of the list. habits. You can really understand how fans have a big focus on D2C both on the label customer response than social media? Long If you have a list that is two years old that react with the artist.” side and through various artist stores, like explains that one of the main reasons for hasn’t been touched in a year then the open Arctic Monkeys, The Kills,” he says. “We try this is that it takes more effort to sign up to rate will be lower.” And this process of discovery doesn’t end and sell directly to people. We still get the with the sign up: email tracking tools allow an email list than to simply like a post on This email sign up process is, in fact, a double best conversion rate from email marketing. labels to build profiles of the people on Facebook. Therefore, consumers who sign up bonus for marketers as it also allows them to We get really good open rates too.” their mailing lists – who, for example, is for these lists are, almost by definition, more findout a lot more about fans than they can more interested in audio and who prefers And it is not just the music industry that is dedicated fans. video – which can then be used to tailor saying this: a survey by retail technology “If someone likes a page or follows communications accordingly. specialist CrossView (admittedly from 2010) someone on Twitter, that takes found that 39% of shoppers polled prefer a second of their time,” he says. What is more, Lane says that email has a receiving promotions via email, compared “Email requires more engagement. certain “physical reality” that social media with 9% via social media. We see it as a way of segmenting lacks and this encourages ownership. “There is something about email that feels a little So if emails are generating more sales, then a core section of fans that we can more like a physical reality. It will always be the small extra expense doesn’t really matter, establish an on-going relationship more powerful than having something fly Lane explains. “Is email expensive? Yes, but with. We can then give them past you on a feed,” he says. “If you think you really see a return on your investment,” exclusive access to things like about an MP3 versus a stream, an MP3 has he says. “We made a decision a couple of pre-sale tickets, exclusive videos an actual presence and footprint. An email years ago that we would build these things and artist news. And because functions in the same way. There is more ourselves; we don’t use MailChimp or third- it’s via email it means that there is more of a permanency to the sense of ownership for an email.” Issue 72 | 31st October 2012 | Page 4 continued…

This “physical reality” also means that marketers must be wary of sending emails on Facebook, meanwhile, and often all your working and probably don’t like a constant marketers have more possibilities with that are either so large they will clog up the friends know about it. There are already stream of tweets or Facebook posts.” the design and content of email than they recipient’s inbox, or so picture-heavy that signs of public disquiet around this lack For fellow Atlantic artists, however, it can be do with Twitter (especially, given its 140 they will take valuable seconds to load. of privacy and insistence on sharing and Twitter that dominates. “With people like Ed character limit) or Facebook. The content of email could be primed to benefit. After all, A rather more prosaic reason given for the Sheeran, his audience naturally gravitates an email, after all, is important (see box), with sign up to an email list, or watch a video in efficiency of email marketing over social towards Twitter and he has 3.5m followers,” Lane explaining that he likes to get the artists Hotmail, and nobody else need know about networks is that people simply check their Long says. “That being said, we still have a involved. it, which makes your [insert name of act you email more regularly than social media. very big email list for Ed; in fact, that was like but would much rather keep quiet here] “What is really important with email is you According to research from customer one of the very first things we did, to give obsession suddenly a lot more palatable. have to get the tone right,” he says. “We relationship marketing agency Merkle, 87% away a free three-track EP to encourage much prefer when they come from the artist of internet users checked personal email people to sign up to his email list.” Finding the right communication tool for or the artist provides input on them. In the daily in 2010, while 55% of those surveyed As for push notifications via apps, Lane says long run that is what people are looking for. who had an internet-enabled mobile phone each demographic they should be “brief and conversational” People expect you are going to try and sell used it to check their personal email. All this, of course, doesn’t mean that social with a specific call to action, whereas them something, but wrapped around that “I’m on email all day and I always have media and apps have no place in the email is more in depth. This may have to people want culture and context.” my iPhone with me at every store I walk marketing mix. Rather, as Le Comte explains, do with the very specific nature of push This content can also extend to design, into,” Steve Rowan, managing partner at the method of customer communication notifications, which the user has to look at images, attachments etc., although research company Retail Systems Research should take into account the target before deleting. This makes them hard to told Internet Retailer. “If there’s demographic and what exactly you want to ignore – a big advantage over emails, which a promotion via email, it’s right say. can be deleted unread – but also means there local to my phone at any “Really young audiences, from 13 to 18, are marketers have to be wary of coming across time – no connecting to a slow-as- more mobile – SMS users than mobile. We as too intrusive or using a push notification can-be 3G network and trying to do SMS marketing but we try and build CRM that takes too long to read. navigate through Facebook.” around social,” he says. “We don’t really Le Comte says, “Usually each time we have Then there is the crucial promote sales via SMS. It is quite intrusive so a fan app, like the Swedish House Mafia one, advantage that email is very it is more about tours and shows.” each time they have a big announcement private when compared to social Long adds, “With Rumer we have an email we always try to send a push notification media. Generally, the only way to list that is bigger than her Facebook page. but it is a really short, short message to receive more information about That is the online space her fans are naturally get people on board rather than sending a an artist on social media is by drawn to. She writes blogs and did an on- commercial message. It really depends on publically liking, befriending or the-road piece. That stuff really works for the artists. following them. Watch a video her audience. They are used to that way of Issue 72 | 31st October 2012 | Page 5 continued…

For electronic acts, push notifications work really well.” Subject lines are where emails Email marketing dos and don’ts... How to build an email list live or die Email, then, we can conclude may be part Do... There are three main ways to build up an For anyone who has ever run an email email list. of a far wider marketing mix for the music campaign, the most nervy moment can • Encourage people to sign up by offering industry but reports of its death are surely be watching the response rate – seeing something in return – an MP3, say, or a Firstly – and most commonly – is by offering greatly exaggerated. which exact percentage of fans has opened competition prize. people something in return for their email the email and if they have clicked on any address, such as a free MP3 or, in the “Facebook and Twitter are more a way of • Get artists to contribute to emails, links. Indeed, getting fans to open your if possible. “We much prefer when case of Ed Sheeran, a three-track EP. This reaching a really high level of awareness. commercial emails, rather than delete they come from the artist or the artist has the added advantage that you can Email is really about a one-to-one them unread, is seen as the Holy Grail provides input on them,” says Lane. confirm the email address by sending the relationship,” says Le Comte. “Will email of email marketing. And now Joe Vitale, “In the long run that is what people are download link there, ensuring a list full of author of more than 50 books on hypnotic looking for.” live emails. Better-funded artists may even eventually die? Yes, it will. We still have a marketing, claims to have the answer (via have someone at gigs signing punters up to couple of years when email marketing will be MusicThinkTank.com): ask a question in • Monitor open rates – this will help you to the list, while DIY acts will probably have a really important; but for younger people we your subject line. improve email communication and learn sheet of paper on the merchandise tablet. will need a new way of connecting.” about your audience. In either case, offering something in return Not just any question will do, however: will dramatically increase uptake. Tailor each communication to your Vitale tells Music Think Tank that it must be • Lane adds, “I think email will probably be the audience in media, style and message. dominant format of written communication a question that can only be answered by Secondly, labels and artists can try to digging deeper (and therefore opening the collect emails when people buy goods from electronically for the next generation or email). So, for example, “Do you want to buy Don’t... them online by offering a simple tickable probably most of our working lifetime. There my new album?” is a pretty weak question • Let your lists get old: keep them up to (or untickable) box. This method can, are always things trying to push that and as the user can answer it themselves. But date for better response. according to Lane, be particularly useful as replace it but an email is a letter essentially “Have you ever made THIS big mistake it gives labels a list of fans who are actually on the dance floor?” is enticing, creating • Spam people. “We try to make sure that willing to spend money. “If they have shown and letters have been dominant for hundreds curiosity in the recipient that can only we have sufficient content around one that they like the artist enough a spend of years.” be answered by answering the email in email,” says Long. “It is very easy for money on them, then they are people who questions. people to switch off. For me, I never want are the most engaged of all people online,” He concludes, “Something like Facebook or to send two emails in one week, unless he says. Twitter, what Facebook is trying to do in a lot Vitale says that provocative, yet rather you really have to.” of ways, they see the value of email and have open-ended, statements like “Don’t let your Finally, there is the prosaic – if not to be • Skimp on design – you want to look built email functionality into their system. parents watch this new video” can also help professional, rather than like spam. ignored – method of simply putting an Twitter has direct messaging to build one-to- to get your email opened although, in every email sign-up box on the artist and label case, you have to make sure the content • Blindly follow fashion. Social media and websites and collecting emails in this one communication. And that is what email is within the email is interesting enough to apps may be in the news but that doesn’t simple, yet effective, way. Again, this can – one-to-one communications. So I can’t see keep the reader’s attention: a tired, boring mean they’re more efficient than fusty be combined with offering something in email going away.” email with a lively subject will only ever old email for communications. return. work once before recipients cotton on. Issue 72 | 31st October 2012 | Page 6 CAMPAIGNS: The latest projects from the digital marketing arena

The Gif that keeps on band’s latest single, ‘Flaws’, and then export Crosby, Stills & Nash app It’s an interesting development, especially the Gif that can then be shared via email, considering the older demographic that giving Facebook, Tumblr or Twitter. Freemium apps are becoming makes up a considerable percentage of CSN fans. In theory this is a combination of Drip. Fans often create user-generated Luke Ferrar, digital manager at EMI Music, increasingly popular for social fm and the EMI Blue Note iPad app. The CSN content (mainly for their own said, “The young female audience on Tumblr games, but with official music app itself looks extremely polished and could is the perfect fit for Bastille and there are apps we haven’t seen too many amusement), but how do you offer bands with an older fanbase a way to already a number of Bastille fans creating access that content as a marketing examples of the business model monetise streaming content. manager and utilise it in your UGC on the platform. We wanted to amplify been executed well. That could this activity across other platforms by letting The market penetration for services such digital strategy? Bastille have fans create and share Gifs from the ‘Flaws’ change with the launch of the as Spotify and Deezer seems to be lower for found one approach by launching video in an easy and accessible way.” official Crosby, Stills & Nash app older audiences and by going D2F via an app, a UGC-focused competition where for iPad and iPhone. CSN will be earning a considerable amount Fans are also incentivised to share their more per stream via their own app, even fans create Gifs and send them to creations to gain access to behind-the- The app has been created by D2F platform after Apple takes its 30% in-app purchase friends as digital postcards. scenes videos and the 10 most viewed Gifs Contendis and is free to download itself, but fans have to pay to access premium content. commission. Fans can create a 1-to-3-second-long Gif using receive signed t-shirts from the band. Views It costs $3.99 for a monthly subscription the Bastille Gifshop website. Users select have been measured by using an impression or $39.99 for a yearly a snippet of the official music video for the tracker that has been inserted into each Gif. This allows Virgin, subscription. Bastille’s label, to track Fans who subscribe views across Twitter, to the service gain Tumblr and Facebook full access to the app. and monitor what This includes: streams creations have been of all CSN albums, viewed the most times. footage from CSN The technology behind live performances, an the Gifshop was created extensive history of CSN by digital agency, and the opportunity Idea Junction, with for fans to upload their Josh Saunders, head own CSN footage and of technology at EMI pictures. Music, leading the tech direction. Issue 72 | 31st October 2012 | Page 7 CAMPAIGNS: The latest projects from the digital marketing arena

Peter Gabriel’s Hammer because, despite its quality interactive app, Graveyard shift clicked, makes the Spotify desktop go dark a competition where fans have to create with a blurred album playlist for fans to turn time UGC may not appeal to Gabriel’s older Swedish rock band Graveyard on. By flicking the switch the album playlist is To celebrate the 25th anniversary fans. We have previously covered UGC have released a clever multi- revealed. competitions from artists such as Ed Sheeran release of his So album, Peter platform campaign via YouTube While all of this is nothing enormously and KT Tunstall and these have received and Spotify to promote their new groundbreaking, the campaign is fun and Gabriel is asking fans to recreate encouraging participation and engagement. simple, working well with the album imagery. scenes from ‘Sledgehammer’, the So there could be an age-based adoption album, Lights Out. The Universal- The band has been active on Facebook award-winning 1986 stop-motion hurdle here. signed act have created a teaser leading up the various release schedules music video. Real World studios Fans’ broader disengagement becomes video showcasing tracks from the in various territories and this has sparked a will create a new UGC version of apparent when looking at other Facebook album and fans are asked to find healthy 17% engagement rate on Facebook ‘Sledgehammer’ with the most posts and seeing there is more engagement out “what’s behind the cover art of for the past seven days. around details of the boxset release rather popular scene entries bagging Lights Out?” This campaign shows that if something than the competition announcement. the corresponding slot in the Within the teaser video, YouTube annotations simple is executed well it can have great final video. So much like last are used to link fans to different parts of results. year’s unofficial UGC scene- the video that will by-scene recreation of the then allow access Star Wars film. to performances of some of the album Fans are able to enter the competition tracks. The annotations via an interactive tab on Peter Gabriel’s that trigger the Facebook Page where they can watch performances are lights other participants’ efforts as well as and work well with the vote and comment. The prizes include band’s imagery that signed Peter Gabriel art prints and a has been created for TDK wireless boombox, although there the video. is no mention of the winner receiving There’s an the boxset – even though that is what accompanying Spotify the competition is promoting. campaign too: a banner From what we can see there haven’t ad that looks like a light been too many entries so far, with switch which, when one or two clip slots not receiving any entries whatsoever. This is arguably Issue 72 | 31st October 2012 | Page 8 Tools Facebook targeted posts

Any marketer is aware of the At the moment in the UK, there are limited constant battles they face when targeting features available. Posts can be using Facebook. Algorithms targeted to users based on location and/ or language, and even this feature is on are changing monthly and a scalable basis where smaller pages are new features are tested by given no targeting options at all. Facebook some users but not given to is, however, currently beta testing more all on a weekly basis. Nobody extensive targeting features for organic posts can deny that Facebook is a where pages can send free targeted posts fantastic marketing tool with that are based on age, gender, relationship its 1bn monthly active users status, language, location and interests. (MAUs) reach and that data With the introduction of a feature where you can target posts for free, we could see a rise that is available from the free have already expressed an interest in your Facebook Ads engineer Philip Zigoris wrote in engagement statistics again as you would platform – but there is one product; but where the uproar has come in a recent blog post, “Regardless of whether assume the more targeted a post the more from is some marketers feeling that they are you’re paying to promote a story or just debate that continues to gather interaction it will gain. The balance will be in being forced to user promoted posts to reach posting one to your Page, the news feed will momentum: Is Facebook targeting to the right people but ensuring the same amount of fans that they would be always optimise for stories that generate making it harder to reach fans? enough users receive the post. reaching prior to the recent update. high levels of user engagement and filter out Not every Facebook post from brands you Although promoted posts are potentially a ones that don’t.” Darren Hemmings of Motive Unknown adds, like and the friends you connect with is great tool, with limited targeting abilities, “Promoted posts just don’t work for delivered into your news feed; posts are some fans can see the same advert up to 10 content creators such as bloggers as assessed on how relevant they are to you. times. Blair mentioned that this could also be you can’t afford to promote every post. having a negative effect on the way people The way that Facebook assesses posts is via When it comes to promoted posts for respond to an artist/brand by overexposing a feature called EdgeRank which evaluates artists, it is a different ball game. The your message. posts’ relevance using three basic principles: posts that you want to promote are key affinity, weight and time decay. This isn’t a Reports from Richard Metzger of the announcements. In terms of reach and new feature, but after recent updates many Dangerous Minds blog say that to reach up the return on click-through rates on pages are noting a 50% decline in their pages to 20k fans it will cost $50, for 30k fans it promoted posts, they’re pretty good.” reach to organic impressions which has will be $75, for 40k fans it will be $100 and The key point through all of this is that spurred many disgruntled blog posts about for 70k fans it will be $200. This may not if your content isn’t engaging, you’re how Facebook is forcing business to pay for seem expensive considering the people that not going to receive great results. advertising. receive your promoted posts are fans that Issue 72 | 31st October 2012 | Page 9 INTERVIEW Tamara Roukaerts – head of marketing, Aurasma

Aurasma was set up early How is the music business using AR? cities can go to them and have an [AR] experience [where 3D images in 2011 by Autonomy Recently the music industry has really taken are triggered by pointing at certain notice of what other verticals have been Corporation (which was then landmarks]. Universal incentivised it doing – such as retail and fashion – and they acquired by Hewlett-Packard by offering money-can’t-buy prizes are starting to use AR as a channel to reach [for sharing related photos]. for $11bn in August last year). fans. It offers an augmented reality You can also click-through to pre- It’s fan-led. Music fans today are consuming (AR) platform for iOS and order the album. We have had over digitally more and more as well as using their 100,00 interactions with the app and Android and has worked mobiles more and more. The combination of on the day of launch the click-through with a variety of major these two things means it’s the perfect time rate was 24%. That’s a phenomenally to start looking at AR as a channel to reach brands including Universal high click-through rate. A normal them. It brings together things in the physical Pictures, Coca-Cola, Stella online campaign would typically see world like album artwork, physical locations, Artois, Daily Mirror, Tesco, 2-3% click-through. ads and print materials that people are Reebok and Heat magazine. engaging with. It also allows you to deliver all Everything we did with the Stones Its music partners include kinds of other digital experiences on top of was approved by the band. They Universal Music Group, that. were very involved. It was exactly the same with Robbie Williams. A lot of Ministry Of Sound and Sony AR treasure hunt. You have to go down there, One of the biggest acts to recently use your the artists are very involved in all of look at the original reference image so you Music Entertainment. Tamara platform in their marketing is the Rolling this. When we were doing 3D renderings of get an idea of the angle and move around Roukaerts, the company’s Stones. How did that come about? Kiss, Gene Simmons wanted to make sure his to find it. When you find it and unlock it, it’s head of marketing, explains tongue was exactly right. I’m not even joking! They are a band that really understand the even more fun as you had to work a bit to what non-music companies iconography and the imagery around music. How does the photo technology know it’s get it. We are only just starting to scratch the What they were able to do was take their are doing with AR, why at a landmark? surface with our partners. it delivers a new type of artwork and take it into a completely new consumer insight and why it space. They were able to augment the GRRR! We have a database of images from around What non-music uses of AR should the album artwork [of a gorilla] and add it to the world taken over time as part of other music business know about? should no longer be seen as a 3,000 locations in 50 cities around the world campaigns and also as part of what we do. For Universal Pictures, the question was how gimmick. and bring it to life. Some images we went and specifically took to create value around physical product, as for this campaign. You do need to stand There were locations like Big Ben and there are good margins in physical product. roughly where the picture was taken to have Sydney Opera House where fans in those One of the things we have been talking about the experience. That’s part of the fun – it’s an Issue 72 | 31st October 2012 | Page 10 continued…

with a lot of our partners is giving people views from a total of 100,000 units sold. It’s things. You just ‘spray and pray’ is the phrase. through the main app. Through this master an experience you just can’t get with digital something different. People love seeing this app, you can see the entire content if you With AR, you get a window that you never downloads. And creating something that is type of content and they can share it through want to. There is real potential to grow this had before on how fans and users are a collector’s item. Something that you keep the app. through user recommendations and sharing engaging with different aspects of your mix. at home and show to your friends when they stuff with friends. You’re suddenly making mobile right at the come round. How do consumers know there is an AR element? centre of the marketing mix with AR. Is AR just a gimmick? Universal created digital assets for their DVD The kind of data we give to our partners is covers [dinosaurs come to life on Jurassic How the Stones ran their campaign is That was definitely the case before. At the around the number of views and interactions Park, King Kong climbs a skyscraper etc.]. interesting. They kickstarted it with a teaser start, AR used to be one app to do one thing. that have occurred through the platform. We found that people kept coming back and campaign on social media. They had the It would be quite a big app and you’d get Universal can gauge the click-through rate doing it again and again. They had 60,000 gorilla’s eyes used in the Facebook banner one experience from it. That’s all the app did. image before they even showed any of the and see how many people went to pre-order What Aurasma has been able to do is to make artwork or announced what the album title the album or how many accessed Spotify this scalable. You can have thousands of was going to be. playlists through links in the app. That’s experiences that you can deliver on the app. where it gets really interesting. When our You can also do more complex experiences It told people to download the uView app partners look at those statistics they are able than were possible before. [Universal’s bespoke AR reader] and point to start optimising offline marketing. it at the artwork for a sneak peek. The eyes AR doesn’t have to be complicated. It is simply blinked. Thousands of fans did this In Heat magazine, people really responded wonderful when it adds something or solves and they kept drip-feeding little pieces of to the Spotify link [featuring playlists and an issue for people. information on Facebook for people to layered over features]. The click-through rate One of my favourite campaigns was for connect with. was something like 48%. It starts to give you a new understanding of how users and fans Ministry Of Sound. They have been putting What data can AR apps deliver to labels? are engaging with what you do. Then you out flyers for years but the flyer has not really can start building on that understanding and changed. People going out at the weekend The launch band for Universal’s uView deliver better augmented experiences. have their smartphones and Ministry wants was the Stones. There are lots of parts of to reach them so they used Aurasma to let engaging with fans that happens offline. Is having to preinstall a dedicated AR you listen to whoever is playing on the bill Most companies spend about 80% of their reader app a barrier to adoption? that night or download a free track. It solves marketing budget on offline aspects of the a real issue for people if they don’t know the Our partners often choose to have their own marketing mix – things like print ads, point of DJ in advance. They can point at the flyer apps as they have very engaged audiences. sale displays, in-store and product packaging. and find out. One of the key things is to think On the Aurasma app, you can subscribe You don’t have any real visibility on how about what people need and then use the to content from any one of our partners people are engaging with any of those technology to deliver it. Issue 72 | 31st October 2012 | Page 11 continued…

How much does it costs? How long should the AR content run for? to be able to use Aurasma. The biggest time We have done complicated things like issue is having the concept and the digital with Heat where there are eight or nine For selected partners we offer all of our The longest we’ve done [for The Mirror] was content to leverage. Creating when you have interactions on the page and it works fine. services and all of our platforms for free. We about 20 minutes. It was tied around the all those pieces in place can be done really As long as you can tap the links and stay true are pre-revenue. We don’t make any money football transfer window deadline. We think quickly. to the customer experience you are trying to at the moment. We are focused on building there is an optimum time but it depends on deliver then you can be innovative around awareness of the technology, learning the experience. Some things are short and People are increasingly using digital but that. You can also sequence it so at one point from our partners what is possible and the sweet and retailers especially just want to they also still love print. They love getting at the beginning you can show one set and direction we should build in and changing get you to the point of purchase. They want their paper and artwork on albums. How can then you can do other stuff after that. the way people see and interact with the to get you in the mood to buy and get you you take all that stuff that people love and world. We are at that stage of the business. there. care about, the tactile quality of physical Some of our partners charge for the apps things in the real world, and make it relevant and some have free apps. It’s about knowing For other companies, especially ones When will you start to charge? to mobile? We think AR is one of the ways your business and what will work best for like Universal, it’s much more about the companies do that to add digital value to your audience. For us, Aurasma is always In terms of our business, we are looking experience and delivering exclusive content. things people love. going to be free. That is our commitment for a certain level of awareness and market So maybe for these things three or four to our users. That’s what we think works for penetration before we switch on the revenue minutes would be an optimum time. We do What are the dos and don’ts of an AR our business – having a free experience that model. When we do switch it on, it will blends of stuff so you’ll start off with the 3D campaign? anyone can enjoy. In delivering additional be a pay-per-click one. We think, and our animation and then a 2D video. We have the monetary value for businesses is where we partners do too, it really works. Watching the technology but it is our partners and their The one thing I’d say that is really important are going to monetise it. content is free for people, but if they click to agencies that have the understanding about is to really think about the customer download a track or pre-order or even visit the right experience to deliver. experience. Really think about the a website then a small piece of revenue is audience you are reaching out generated and the advertiser pays. How quickly can someone get an AR to and make them at the heart of campaign up and running? what you are doing. It is a scalable and effective business model that is know to people already. Most We designed the platform originally for a A bête noir for us is that if you are companies know about the Google AdWord busy newsroom. When they are putting the going to use AR and take people to model and this is similar. It is a sensible print edition to bed they can also augment an online destination, make sure it’s model and people seem to be on board with it with digital content. We have a solution mobile-optimised. it so when the time comes and we and our that is going to work in any kind of business What we haven’t really explored partners are ready for it we’ll switch it on. under any kind of time pressures. with our music partners is how to There are no precise plans for when, but it is It’s like a web CMS so if you have ever get customers to come back for definitely on the radar – just not imminent. uploaded content to a website, you are going new content on top of the stuff they have already got. Issue 72 | 31st October 2012 | Page 12 Music charts: 24th - 30th October 2012

Scrobbled... Last.fm Streamed... Spotify UK Grown... Next Big Sound 1. Mumford & Sons - I Will Wait 1. PSY - Gangnam Style 1. PSY 2. Muse - Madness 2. The Script - Hall of Fame 2. Taylor Swift 3. The xx - Angels 3. Taylor Swift - We Are Never Ever... 3. Katy Perry 4. Muse - Supremacy 4. Flo Rida - I Cry 4. Justin Bieber 5. Ellie Goulding - Anything Could Happen 5. Ne-Yo - Let Me Love you 5. Adele

Tagged... Shazam Blogged... Hype Machine Watched... YouTube 1. PSY - Gangnam Style 1. Marina and the Diamonds - Lies 1. PSY - GANGNAM STYLE 2. Rihanna - Diamonds 2. A$AP Rocky - Fucking Problem 2. One Direction - Live While We’re Young 3. Alex Clare - Too Close 3. Ben Howard - The Fear 3. Carly Rae Jepsen - Call Me Maybe 4. Asaf Avidan & The Mojos - One Day / Reckoning Song 4. Sound Remedy - Runaways 4. Justin Bieber - Beauty And A Beat 5. Maroon 5 - One More Night 5. Satin Jackets - You Make Me Feel Good 5. Taylor Swift - We Are Never Ever...

Bought... iTunes UK Talked about... We Are Hunted Tweeted... Twitter charts - Hype Machine 1. Taylor Swift - I Knew You Were Trouble 1. Kendrick Lamar - Backseat Freestyle 1. Gentlemen HALL - Golden Age 2. PSY - Gangnam Style 2. Ty Segall - Femme Fatale 2. Borgore - Why Does It Feel #TURNUP 3. Ke$ha - Die Young 3. Toro y Moi - So Many Details 3. NO CEREMONY/// - FEELSOLOW 4. Maroon 5 - One More Night 4. Haim - Don’t Save Me 4. Binder Full Of Women - The Melker Project 5. Taylor Swift - State of Grace 5. Icona Pop - Good For You 5. Outasight - Shine

Consumed... Big Champagne - Ultimate Charts Shared... ShareMyPlaylists 1. PSY - GANGNAM STYLE 1. Swedish House Mafia - Don’t You Worry Child 2. Adele - Skyfall 2. Swedish House Mafia - Greyhound 3. Maroon 5 - One More Night 3. Skrillex - Bangarang 4. One Direction - Live While We’re Young 4. Calvin Harris - We’ll Be Coming Back 5. Taylor Swift - Red 5. PSY - GANGNAM STYLE Sandbox is published by Music Ally. Music Ally is a music business DIGITAL MARKETING SERVICES Contact Music Ally: information and strategy company. We focus on the change taking place 22 Peters Lane in the industry and provide information and insight into every aspect Campaign support services: London of the business: consumer research analysing the changing behaviour • Strategy EC1M 6DS and trends in the industry, consultancy services to companies ranging • CRM and Email tools Tel: +44 (0)20 7253 7600 from blue chip retailers and telecoms companies to start-ups; and • Digital housekeeping www.MusicAlly.com training around methods to digitally market your artists and maximise • Social networking updates [email protected] the effectiveness of digital campaigns as well as events. We are now • Search and online advertising Registered company number: 04525243 also offering digital marketing services to labels, artist managers, artists • Mobile applications VAT number: 858212321 and other music related companies from campaign advice and strategy through to implementation and execution. • Blogs and online PR outreach • Measuring campaign effectiveness Clients include: Contact Karim - [email protected] or +44 (0)20 72537600 Apple, BBC, EMI, MTV, O2, Orange, Sony BMG, Tesco, to discuss your digital marketing needs. Universal Music, Vodafone, Warner Music, Roadrunner Records, Just Music and Connected Artists

Training services: © Music Ally Ltd. For the purposes of personal, private If you have a digital campaign related story for SandBox, • In house company mentoring use the subscriber may print this publication or move please contact [email protected] it to a storage medium; however, this publication is • Workshops intended for subscribers only and as such may not • Digital briefings be redistributed without permission. Subscribers agree to terms and conditions set up on the Music If you’d like to talk to us about our digital marketing/mentoring • Digital MOT sessions Ally website, except where a separate contract takes training services, consultancy or specific research services, precedence. Music Ally has taken all reasonable please contact Karim Fanous [email protected] Music Ally has delivered digital marketing training sessions for a endeavours to ensure the validity of all items reported wide range of clients including Universal Music, EMI, AIM/London within this document. We do not assume, and hereby Connected and many individuals disclaim, any liability for loss or damage caused by If you’d like to subscribe, add new subscribers, or talk about errors or omissions. In particular the content is not a corporate deal please contact [email protected] intended to be relied upon in making (or refraining Check out Music Ally’s digital marketing courses here from making) investments or other decisions. We cannot be held responsible for the contents of any Contact Anthony on [email protected] or linked sites. +44 (0)20 72537600 to discuss your training needs