According to Heartbeats International, a brand-communications company from Stockholm about seven out of ten companies are using only 5% or less of their marketing budgets on music while 97% of brand managers and directors believe that "music can strengthen their brand." So why the disconnect? Apparently, for some, it is "the difficulty in measuring the value of an investment in music" as well as legal issues. This serves as an extremely lame excuse in my opinion...how exactly are non-textual graphics measured? What you hear is just as important as what you see if not more in some cases. Sounds Like Branding, is a video presentation conducted by Heartbeats International that outlines the importance of music for a brand's positioning especially in this new advertising environment (I recommend watching only the first 15 min). Key points made included: (1) how brands now need to not only have consumers but real fans; (2) music is the best personality identifier and (3) 75% of people ignore advertisements. All of this makes sense because brands need to become more human and music is human, it's emotion, it's feeling and expression so voila we can potentially have the perfect marriage. Brands + Music = More Human brand. See Billboard.biz for more info.
Pepsi recently launched a viral ad, "Wordplay" with its new agency, TBWA\Chiat\Day (on its website Refresh Everything) to capture the millenials, the generation that includes 80's and 90s babies. What is so powerful about the millenials? We represent pop culture which includes music, fashion, movies, art and ultimately tastes and trends across all products and services. According to Adweek, Pepsi did some research and found that "95 percent of millenials feel that its important for them to maintain a positive outlook on life." So with some feel good vocabulary (optimisim, love, joy), Happy 2009 in several languages and the song "Energy" by indie rock outfit, The Apples in stereo, Pepsi attempts to project our experience. Looks like there are still some great opportunities for artists to get their music heard via ads. Tougher economy just means that we have to work smarter, a lot smarter and we can definitely still grow.
Earlier this week, Ad Week announced that GM is no longer part of the top 3 global marketers club and now the lineup consists of Proctor & Gamble Co, Unilever and newly number 3, L'Oreal (which owns brands that include Lancome, Biotherm, Mizani, Giorgio Armani, Ralph Lauren and Cacharel). The expectation for 2009 is a 3.2% decline in ad spending in the U.S. So what does this mean for music? Well, ad spending is expected to go down because companies feel that consumers are not interested in new products (this includes music) and are curbing their spending. If companies are not looking to market their products and services and find new ways to connect with consumers, they are not making new ads and not working with labels and artists for strategic marketing purposes. But just how much do labels and artists rely on corporate sponsorship and strategic marketing opportunities? Unfortunately, I do not have the answer to that, but I do know that it surely limits opportunities for artists and their music and of course revenues for labels. So what can we do in this down market? Staying positive and being hopeful are the only actions that come to mind.
According to Heartbeats International, a brand-communications company from Stockholm about seven out of ten companies are using only 5% or less of their marketing budgets on music while 97% of brand managers and directors believe that "music can strengthen their brand." So why the disconnect? Apparently, for some, it is "the difficulty in measuring the value of an investment in music" as well as legal issues. This serves as an extremely lame excuse in my opinion...how exactly are non-textual graphics measured? What you hear is just as important as what you see if not more in some cases. Sounds Like Branding, is a video presentation conducted by Heartbeats International that outlines the importance of music for a brand's positioning especially in this new advertising environment (I recommend watching only the first 15 min). Key points made included: (1) how brands now need to not only have consumers but real fans; (2) music is the best personality identifier and (3) 75% of people ignore advertisements. All of this makes sense because brands need to become more human and music is human, it's emotion, it's feeling and expression so voila we can potentially have the perfect marriage. Brands + Music = More Human brand.
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