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. Even so, it seems to mirror of unique visitors to the website and the size of the total the CMA findings which place fans into high-spending email network. countryphile and low-funding musicphile categories. "My hope with this study is that management and Demographics labels will recognize that by increasing their email Breaking down respondent demographics, the largest database it actually does create return on the investment, age categories were 35-44 (27%) and 45-54 (26%). there is a reason to invest in it," says Putnam. Surprisingly 25-34 year-olds were only 17%. Gender "If you are an artist what's one of your most valuable breakdown was 68% female and 32% male. About 39% assets other than your music? It is your fans," adds MCN were artist fan club members. Engaging customers Partner Paul McCulloch. "Do you have their email, online was also found to benefit future purchases. Of phone number, where they live, etc.? An artist may be respondents, fans of a particular artist said they were on one label today, but a year later have a different deal. 88% very likely or likely to purchase the artist's next Developing a fan database is career critical." album and 81% very likely or likely to attend their next concert. Summary "It reinforces the fact that artists should be making • The No. 1 most influential factor in building revenue is every effort when out doing live shows to acquire email the size of the overall network, the study concludes. addresses," says Tim Putnam, MCN Partner and VP of • There is very little statistically significant variation in Marketing. "The email list is complimentary for all types spending between different demographics and of revenue both online and offline. It's really about member types. relationship building. If we are hitting them once a • Only a small sub-set of users make purchases. month with a newsletter, we are keeping the brand on • Concert tickets and brick and mortar album purchases the brain. But if we bombard them with spam emails are the largest sources of revenue. they will be gone." • Fans that opt-in to a client's database are invaluable resources for future revenue growth. MCN/CMA Comparisons Like this MCN study, the recent CMA research also The study was conducted by Ellery Long, an MBA shows a very small percentage of the consumers student at Vanderbilt University Owen Graduate School responsible for a disproportionately large share of of Management with concentrations in Marketing and revenue. One interesting difference between the two Strategy. His research is primarily focused on new media studies is that the CMA data included digitally engaged and social media marketing. Ellery executed this project consumers and those that still rely mostly on traditional for MCN while working as an MBA Marketing Intern this media. The MCN study by definition focuses on digitally summer. He will complete his MBA May 2010. Email: engaged consumers, those with email addresses. Also [email protected] ©2009, MusicRow Communications, LLC—ALL RIGHTS RESERVED [email protected] page 3 Wednesday, September 9, 2009 Paisley Leads CMA Nominations IEBA Honors Lines Up Performers Nominations for the 2009 The International Entertainment Buyers Association has CMA Awards were announced this added rising stars Jamey Johnson, Randy Houser, Chris morning (9/9) on ABC’s Good Young and Jessie James to the lineup of the IEBA Honors, Morning America, and a special set for Oct. 12 at the historic Ryman Auditorium in Nashville. edition of CMT Insider. Brad As previously announced, that night IEBA will hand out Paisley led the list of finalists trophies, including honoring industry legend Barbara "Mother" with six nominations, including Hubbard, and rock and roll icon Chubby Checker. More Entertainer; Male Vocalist; Album honorees and special guests will announced soon. for American Saturday Night The Awards are part of the annual IEBA Conference, to (produced by Frank Rogers and be held October 11-13 at the Hilton Downtown Nashville. Chris DuBois); Single and Song IEBA is headed by Executive Director Tiffany Davis. Details for "Then" (DuBois and Ashley and conference registration at www.ieba.org. Gorley are also nominated as songwriters); and Music Video for Brad Paisley "Start a Band" with Keith Urban, which was directed by Stars Set For ICM Awards Jim Shea. Jason Crabb, Randy Houser and Adam Gregory Urban, along with Jamey Johnson, George Strait, have been confirmed to appear at the 15th Annual Taylor Swift, and Zac Brown (frontman of the Zac Brown Inspirational Country Music Awards Show (ICM Awards), Band), each received four nominations. Go to taking place Thurs., Oct. 15 at the Trinity Music City USA www.musicrow.com for the complete list of nominees. Auditorium in Hendersonville, Tenn. Nashville Heads North For Canadian Country Music Week Vancouver, BC, is Canada's hub for Country music this year as it prepares for Country Music Week, opening tomorrow (9/10) and closing Sept. 13 with the grand finale, the CCMA Awards. The agenda of activities includes new artist showcases, seminars, industry events, musical performances, and a FanFest with autograph and photo opportunities. On Friday, Sept. 11 the Keynote Address BMI Buzz at the Basement was held last Wednesday (9/2). Nashville’s authentically will be delivered by Nettwerk CEO Terry underground venue was at full capacity as attendees listened to acoustic sets from the McBride. That evening, the 2009 Canadian city’s newest up-and-comers. (L-R):BMI’s Beth Mason; Cherrill Green, Hannah Blaylock Country Music Hall of Honour members will be and Dean Berner of Edens Edge; Kacey Musgraves; BMI’s Leslie Roberts; Ben Glover; inducted during the Dinner & Awards ceremony. and BMI’s Jody Williams. This year's inductees are artist Buffy Sainte- Marie, industry veteran Barry Haugen and Country radio broadcaster John Murphy. The Sept. 13 CCMA Awards has a star- studded performance line-up with Reba McEntire, Martina McBride, Terri Clark, George Canyon with Crystal Shawanda and Richard Marx, Doc Walker, Jessie Farrell, Aaron Pritchett, Emerson Drive, Johnny Reid, Gord Bamford, Paul Brandt and Jann Arden. There will also be special performances by Dean Brody, Victoria Banks and Tara Oram. Leading the CCMA nominations are Johnny Reid (six), George Canyon (five), Victoria Banks (five), Dean Brody and Gord Bamford (four). The show, to be hosted by actor and director Jason Priestley, will air on CBC American Roots Records group TelluRide spent some time with University of Tennessee Television, with encore airings on CMT in Canada. women’s basketball coach Pat Summitt prior to taking the stage at the annual UT Big Visit www.countrymusicvancouver.com/events Orange Bash Friday evening in Knoxville. (L-R): Adam Craig, Brian Smith, Summitt, or www.CCMA.org for details. Ryan Jones and Jimi Hendrix. ©2009, MusicRow Communications, LLC—ALL RIGHTS RESERVED [email protected] page 4 Wednesday, September 9, 2009 As previously announced, Ricky Skaggs & The Whites, Cherryholmes, and 2008 ICM Entertainer of the year CrossCountry are slated to perform. The annual Inspirational Country Music Awards are dedicated to honoring and showcasing the biggest names and emerging talent among artists who perform Christian and Inspirational Country music. For more info, tickets and show highlights, please visit www.icm-awards.com. Birkhead Is A Worthy Hire Worthy Media has hired veteran publishing executive Rob Birkhead as Vice President, Creative. Pres. and CEO Byron Williamson leads the company which focuses on Christian content development, marketing, and distribution. Show Dog Nashville's Trailer Choir is partnering with CMT for the “Racin' Birkhead, who will be involved in all the Beer Gut Sweepstakes” sending one lucky winner to Dover for race facets of Worthy’s video resource weekend festivities. Trailer Choir will be performing the National Anthem production and packaging projects, has and have a pre-race performance at Nascar’s Dover 400 on Sept. 27.(L-R): more than 20 years experience in the Rob Birkhead Big Vinny, CMT’s Top 20 Countdown host Lance Smith, Crystal Hoyt and Butter.