2. Focus on Data
- Right offers in front of the right audience
-
- Hypothesize and collect data
3. 4. Opportunity is real
- Internet levels the playing field
-
- Particularly true when it comes to both granularity and
accessibility of data
-
- Direct to fan response can be quantitatively tracked and
improved online
- Historical ways of releasing music for the industry meant
getting measured by Soundscan, Billboard, BDS radio spins, but now
artists can make music for their fans and measure that response
accordingly
- Empowered artists need to pay attention to different key
metrics
5. Better Business
- Let the data determine how to invest in new artist
products
-
- Fans pay more: >$20 average revenue / transaction, $50 with
branded artists
-
- More Margin: 85% vs. 70% -20% in your direct channel vs.
others
- Own your fan and super-serve them
-
- Use fanbase data to segment and target for higher
conversion
-
- Save on remarketing costs
-
- Michael Masnicks presentations atMIDEMandNARMdiscuss Trent
Reznors approach and offer several great artist examples
-
- Case studies: Fanfarlo, Jonathan Coulton, Metric, David
Byrne
6. Think in terms of a Funnel 7. Steps to take
- Craft offers to meet goals
- Repeat, iterate, experiment
8. 1. Set Direct to Fan Data Goals REACH My widget on 100+ sites
this year 50,000 unique visitors this month ENGAGEMENT Single
played 10,000 times on the web Fans to share my video 2,500 times
ACQUISITION 5,000 email addresses by January Sell out the Mercury
Lounge in NYC (capacity 250) MONETIZATION Make $60,000 from a
series of DTF offers Average fan revenue is $50 per year across all
offers 9. 2. Craft Your Offer
- Authentically connect with your fans
-
- Do not focus on topline revenue of one product
-
- Artist as a brand with many products
-
- Variety of offers to serve a wide spectrum of fans
- Emerging artists prioritize on fan acquisition through low
friction, low cost offers
- Established artists benefit from fans wanting collectibles and
higher-value experiences
- All should include tiered premium offers vs. leaving major
revenue and margin on the table
10. Impact of Physical Goods in Offers *Source: Topspin direct
to fan campaigns 11. Consider Premium Offers
- 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 12. Plot and Serve Your
Demand Curve 13. 3. Collect Data
- Once youve crafted your offers, project demand
-
- Calculate weighted average transaction value based on product
mix and expected distribution
-
- Multiply average revenue & margin by conversion rates from
channel
- Get a handle on accessible channels
-
- Number of emails in your list (ensure freshness for optimal
conversion)
-
- Traffic to primary and secondary sites measured in visits
-
- Search volume ( Googles search term tool )
-
- Social network reach in friends or followers: Facebook,
MySpace, Twitter, Last.FM, YouTube, iLike, etc.
14. Google Analytics Required 15. Topspin Conversion Averages
Source: Topspin Direct to Fan Averages CHANNEL CONSERVATIVE NORMAL
AGGRESSIVE
10% 4% 15% 8% 20% 12%
100% 2.4% 7% 100% 4.8% 15% 100% 8% 20%
- Traffic to Secondary Sites
8% 2% 3.2% 16% 3.2% 6.4% 24% 5.6% 8%
2.4% 1.6% 3.2% 4% 3.2% 7.2% 5.6% 4.8% 11.2% 16. Topspin
Conversion Averages Source: Topspin Direct to Fan Averages CHANNEL
CONSERVATIVE NORMAL AGGRESSIVE
0.8% 1.6% 2.8% 2.4% 2.8% 3.6% 4% 4.4% 7.2%
0.8% 1.2% 2.4% 2.4% 2.4% 3.2% 4% 4% 6.4%
2.4% 1.6% 2.4% 4.8% 2.8% 3.2% 7.2% 4.4% 6.4%
2% 1.2% 2.4% 3.2% 2% 3.6% 4.8% 3.2% 4.8% 17. Compare Funnel
Conversions Source: Topspin Live Artist Example 18. Essential
Lessons
- Learn and master Google Analytics
-
- Simple to put into footer of website, blog, CMS
-
- Its free and a universal standard
-
- Third party integration, i.e., Topspin purchase flow
- Premium offers = more revenue
-
- Include physical goods to generate demand
-
- Service fans who want more and are willing to pay
- Understand conversion ratesproject demand
19. 4. Test + Measure = ROI
- What was the before and after of your marketing?
- Compare and contrast how different channels drive traffic, fan
acquisition, and revenue
- Benchmark and improve each fan touch-point sales
conversion
-
- Web page views and click-throughs
-
- Email open-rates, click-throughs, unsubscribes
-
- Widget loads, plays, shares
-
- Purchase points: impressions, acquired fans
20. Revenue by Channel 21. Website Traffic
-
- Identify major sources of traffic to your site
-
-
- Topspin Knowledge Base instructions
- Assess ecommerce and conversion by source to reinforce and
reward high-performing channels
-
- For each source, uniquely track traffic and commerce by tagging
the URLs:Google URL Builder
-
- Topspin Knowledge Base instructions
-
-
- Advanced users can develop unique landing pages for each source
of traffic
- Bit.lyandAwe.smURL shortners provide tracking and metrics
22. Social Network Data Platforms Analyze social network metrics
and engage fans periodically with new media and posts 23. Third
Party Metrics Providers 24. 5. Optimize
- Initial direct marketing is an investment in data and
benchmarking
- New metrics for the new business
25. SEO
- Imperative that primary site is ranked highest
- Search Engine Traffic #2-#3 source of artists traffic and
revenue during releases
- Ensure release and artist specific key words are resulting in
top placement for your site
26. SEO
- Can you tell below when this artists primary site fell out of
top placement in search rankings?
-
- Drop in traffic = drop in revenue
-
- Requires continual monitoring or setting up data alerts
27. Landing Pages 28. Landing Page Data Lessons
- Your offer should never be more than one click away
-
- Why? only 15-30% of visitors follow the link to the offer
page
-
-
- Offer page is one click away: 30% click and 10% buy = 3% total
conversion
-
-
- Offer 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 offer page
- Integrate offer page into homepage
- Advanced users A/B landing pages for high conversions
29. David Byrne Email Marketing
- Strongest revenue channel
- 3,000 to 30,000 in two weeks
- Tip: Streaming players or widget images in emails have highest
CTR
30. 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 1000Paid
impressions Average: 0.7/1000 Dispersion David Byrne: 160 sites
Fanfarlo: 248 sites Shares to Sales Ratio Fanfarlo: 1.1 31. 6.
Repeat, Iterate, Experiment
- Promotional effectiveness has short half-life so emulate
successful methods quickly and measure constantly
- Investing in data intelligence enables better remarketing
- Experiment with limited fan sets
-
- Plot your own demand curves and determine price
elasticities
-
- A/B test for incremental gains on all fan touchpoints
- Future of artist marketing is based onyourcreative ideas
-
- Tools will allow easier implementation and more immediate
measurement
-
- Actively engage with audience to sustain and grow fanbase
KPIs
32. Some (More) Creative Campaigns
33. Further Resources
- Google Analytics:Conversion University
-
- Course:Online Music Marketing with Topspin
-
- Certificate program:Topspin-Certified Marketer Specialist
34. Thank you.