Topspin Marketing with Data_MIDEM

8/7/2019 Topspin Marketing with Data_MIDEM

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Focus on Data

More revenue, more fansRight ofers in front of the right audienceMeasurement frameworksSpecific steps

Hypothesize and collect dataTest and measureAnalyzing and Optimizing


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Opportunity is real

Internet levels the playing fieldParticularly true when it comes to both granularityand accessibility of data

Direct to fan response can be quantitatively trackedand improved online

Historical ways of releasing music for theindustry meant getting measured bySoundscan, Billboard, BDS radio spins, but nowartists can make music for their fans andmeasure that response accordingly

Empowered artists need to pay attention todiferent key metrics


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Better Business

Let the data determine how to invest in new artistproducts

Fans pay more: >$20 average revenue / transaction, $50 withbranded artistsMore Margin: 85% vs. 70% -20% in your direct channel vs.others

Own your fan and super-serve themUse fanbase data to segment and target for higher conversion

Save on remarketing costs

Success stories aboundMichael Masnicks presentations at MIDEM and NARM discussTrent Reznors approach and ofer several great artist examplesCase studies: Fanfarlo, Jonathan Coulton, Metric, David Byrne


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REACHFan sites, blogs, music services,TV/Radio/Film, total impressions

ENGAGEMENT

Play, share, post on Twitter, embedon blogs, word of mouth

ACQUISITIONEmail, Facebook friend, Twitterfollower, fan club, street team

MONETIZATIONConversion, active paying fans, recurringrevenue, capturing economic surplus

Think in terms of a Funnel

Discovery

Permission

Playing/Sharing

$

VARIABLE FRAMEWORK


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Steps to take

1.Establish goals2.Craft ofers to meet goals3.Collect data4.Test and Measure5.Optimize6.Repeat, iterate, experiment


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1. Set Direct to Fan Data Goals

REACH My widget on 100+ sites this year50,000 unique visitors this month

ENGAGEMENT

Single played 10,000 times on the web

Fans to share my video 2,500 times

ACQUISITION5,000 email addresses by January

Sell out the Mercury Lounge in NYC (capacity 250)

MONETIZATIONMake $60,000 from a series of DTF ofers

Average fan revenue is $50 per year across all ofers


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2. Craft Your Ofer

Authentically connect with your fansDo not focus on topline revenue of one product Artist as a brand with many productsVariety of ofers to serve a wide spectrum of fansEmerging artists prioritize on fan acquisitionthrough low friction, low cost ofers

Established artists benefit from fans wantingcollectibles and higher-value experiencesAll should include tiered premium ofers vs.leaving major revenue and margin on the table


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Impact of Physical Goods in Ofers

*Source: Topspin direct to fan campaigns


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Consider Premium Ofers

56%

27%

11%4.5%

1.3% 0.4%0%

10%

20%

30%

40%

50%

60%

$150

Frequency of Transactions at

Price Ranges

17%

26%23%

20%

9%

5%

0%

5%

10%

15%

20%

25%

30%

$150

Revenue Earned at Price Ranges

50% of transactions occur at under $10,but account for less than 18% of Revenue Greater than 50% of revenue is earned at

price points over $25

*Source: Topspin direct to fan campaigns


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Plot and Serve Your Demand Curve


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3. Collect Data

Once youve crafted your ofers, project demandCalculate weighted average transaction value based onproduct mix and expected distributionMultiply average revenue and margin by conversion ratesfrom fan sources

Get a handle on accessible channelsNumber of emails in your list (ensure freshness for optimalconversion)Trac to primary and secondary sites measured in visitsSearch volume (Googles search term tool)Social network reach in friends or followers: Facebook,MySpace, Twitter, Last.FM, YouTube, iLike, etc.


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Google Analytics Required


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Topspin Conversion Averages

CHANNEL CONSERVATIVE NORMAL AGGRESSIVE

EmailVisits (clicks)Sales from visits

10%4%

15%8%

20%12%

Trac to Primary SiteVisitsSalesEmail acquisition

100%2.4%

7%

100%4.8%

15%

100%8%

20%

Trac to SecondarySitesVisits SalesEmails

8%

2%3.2%

16%

3.2%6.4%

24%

5.6%8%

SearchVisitsSalesEmails

2.4%1.6%3.2%

4%3.2%7.2%

5.6%4.8%

11.2%

Source: Topspin Direct to Fan Averages


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Compare Funnel Conversions

Source: Topspin Live Artist Example


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Essential Lessons

Learn and master Google AnalyticsSimple to put into footer of website, blog, CMSIts free and a universal standardThird party integration, i.e., Topspin purchase flow

Premium ofers = more revenueInclude physical goods to generate demandService fans who want more and are willing to pay

Understand conversion rates project demand


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4. Test and Measure

What was the before and after of yourmarketing? ROICompare and contrast how diferent channelsdrive trac, fan acquisition, and revenueBenchmark and improve each fan touch-point

Web page views and click-throughsEmail open-rates, click-throughs, unsubscribesWidget loads, plays, sharesPurchase points: Impressions, acquired fans, sales


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Revenue by Channel


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Website Trac

Identify major sources of trac to your siteTopspin Knowledge Base instructionsAssess ecommerce and conversion by sourceto reinforce and reward high-performing

channels

For each source, uniquely track trac andcommerce by tagging the URLs: Google URL BuilderTopspin Knowledge Base instructionsAdvanced users can develop unique landing pages foreach source of trac

Bit.ly and Awe.sm URL shortners providetracking and metrics


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Social Network Data Platforms

Analyze social network metrics and engage fans

periodically with new media and posts


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Third Party Metrics Providers


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5. Optimize

Initial direct marketing is aninvestment in data and benchmarkingSEOLanding pagesEmailNew metrics for the new business


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SEO

Imperative that primary site is ranked highestSEO Advice and Tips:

Search Engine Trac #2-#3 source of artiststrac and revenue during releasesEnsure release and artist specific key words areresulting in top placement for your site

Rank Checker:


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SEOCan you tell below when this artists primary site fellout of top placement in search rankings?

Drop in trac = drop in revenueRequires continual monitoring or setting up data alerts


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Landing Pages


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Landing Page Data LessonsYour ofer should never be more than one click away

Why? only 15-30% of visitors follow the link to the oferpageCompare:

Ofer page is one click away: 30% click and 10% buy = 3% totalconversionOfer page is two clicks away: 30% click once, 30% click again, 10%buy = 0.9%Assume 10,000 visitors and $20 avg sale: this is $6,000 vs. $1,800

Emails should drive fans direct to ofer pageIntegrate ofer page into homepageAdvanced users A/B landing pages for highconversions

Google Webpage Optimizer


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David Byrne Email Marketing

Strongestrevenue channel3,000 to 30,000in two weeks28% CTR13% purchasedTip: Streamingplayers or widgetimages in emails

have highest CTR


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Metrics for the New Music Business

MEASURE EXAMPLES

Play to Purchase Ratio Byrne and Eno: 20%

Fans Acquired per 1000

Viral impressions Fanfarlo: 49/1000

Fans Acquired per 1000 Paid impressions

Average: 0.7/1000

Dispersion

David Byrne: 160 sites

Fanfarlo: 248 sites

Shares to Sales Ratio Fanfarlo: 1.1


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6. Repeat, Iterate, Experiment

Promotional efectiveness has short half-life so emulatesuccessful methods quickly and measure constantlyInvesting in data intelligence enables better remarketingExperiment with limited fan sets

Plot your own demand curves and determine price elasticitiesA/B test for incremental gains on all fan touchpointsFuture of artist marketing is based on your creativeideas

Tools will allow easier implementation and more immediatemeasurementActively engage with audience to sustain and grow fanbaseKPIs


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Some (More) Creative Campaigns

Fanfarlo case studyThe ElkGet Busy CommitteeJoe PugGolden FilterAmbling Alp


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Further Resources

[email protected] Twitter: @shamalmanSkype: shamal_topspin

Topspin Green RoomTopspin Knowledge BaseGoogle Analytics: Conversion University

Berklee College of Music

Course: Online Music Marketing with TopspinCertificate program: Topspin-Certified Marketer Specialist

Copyblogger


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Thank you.

Documents

Topspin Marketing with Data_MIDEM