page 1 Wednesday,Wednesday, SeptemberSeptember 9, 20092009 Study Proves Email Address Value by David M. Ross Artists and record labels historically per year in artist revenue both online and have had little or no direct fan relationships. off. "Of that $111," says MCN President CDs were shipped and placed on store Lang Scott, "the vast majority is being shelves and the identities of purchasers spent away from their website ($98) on were mostly a mystery. As a result, artist stimulated revenue streams like marketers had to use shotguns instead iTunes, ticketmaster, and at retail stores." of sniper rifles when creating advertising According to the study, only about campaigns. The Internet, email and social networks are rapidly changing that equation as shown by a new study completed by Music City Networks, "The True Value of an Email Address." MCN is a web development and interactive media company founded in 2001 that caters to entertainment artists. The study compiles responses from 1384 random fans who opted into the databases of eight artists inside the MCN network. It studies behavior over a two year period. Top level Purchase Behavior—Only a small portion of the revenue findings show that the capture takes place on the artist website, $13. So where is average fan email the remaining $98 spent? The largest single place is concert address is worth $111 tickets which account for 47%. ©2009, MusicRow Communications, LLC—ALL RIGHTS RESERVED
[email protected] page 2 Wednesday, September 9, 2009 38% of users actually make purchases, therefore the key MCN's study has the added perspective that is is ingredients in increasing revenue are building the number comprised entirely of fans.