sandboxMUSIC MARKETING FOR THE DIGITAL ERA JUNE 04 2014

ISSUE 110

CARRY ON BANDCAMPING

05 Tools Whaam 06-07 Campaigns Sam Smith, Kollegah,

Mixcloud, Sony Xperia 08-11 Behind The Campaign Pharrell

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COVERFEATURE

When musician Zoë Keating published details of her 2013 earnings in February, most of the media

coverage predictably focused on how little she was making from streaming services.

Keating made $38.2k from sales on Apple’s iTunes Store last year, then $25.6k from Bandcamp and $11.6k from Amazon. Her streaming income was much less: $3.3k from Pandora, $1.8k from Spotify and $1.2k from YouTube.

The real story here was more about how much Keating was making on Bandcamp, selling music direct to her fans. It was a reminder that, for artists who have worked hard at fostering those relationships, Bandcamp can be a significant source of income.

The progression of Bandcamp

Bandcamp is evolving beyond its roots as a D2F sales platform, though: its website and mobile apps are showing how it has the potential to become a powerful new music discovery service too, where fans

find, listen to and share emerging and established artists alike.

But first, that core business of sales. “The big number for us – our core metric – is how much fans are paying artists through the platform,” Bandcamp CEO Ethan Diamond

tells sandbox. “We’re up to $3.1m every 30 days and our total to date is now $70m.”

He adds, “ We’re about to hit 10m transactions through the site. And the other big stat is that every day, about 6,000 unique artists

CARRY ON BANDCAMPINGD2F AND SOCIAL GET PEGGED DOWN The unbundling of the album with iTunes and the subsequent move into granular streaming payments could be read as a crisis for artist income and sustainability, especially for small and DIY acts without the luxury of a large advance. But a real motor here is D2F sales – and specifically those from Bandcamp. We look at who is doing it right with their artist marketing on the Bandcamp platform and how it is becoming a social network in its own right – and one that can fill the obvious gaps left by Facebook.

sell something through the site. In a month, it’s around 50,000, and last year we had about 160,000 artists selling one or more items through Bandcamp.”

Bandcamp’s community has become a social network of sorts, including “fan accounts” with profiles for every user that’s bought something as well as explorable “collections” of their music, with their comments and mini-reviews if they’ve been posted.

“To me, the key piece of this is that it’s a social music discovery system, but it’s based on this concept of ownership, which is a high-friction concept in contrast to what was the hot thing a couple of years ago, which was frictionless sharing – watch a movie, play some music and have that activity automatically go out to your friends and followers,”

Zoë Keating’s Bandcamp

income in 2013

$25.6k

says Diamond.“I always felt that idea was completely

ridiculous. If somebody listens to a song – I don’t care! I don’t want to know. If they click to Like it, that’s a little bit more interesting; but if somebody feels strongly enough about a record to spend money on it, or more importantly to support the artist that made it, and maybe write a little about why they like it, then I’m interested.”

Bandcamp is proving to be the stealth streaming success The idea of music collections is, of course, as old as physical music itself, and carried through into the downloads era. It’s also making its way into the world of streaming music, with Rdio enabling its users to build virtual collections for some time now, and Spotify having recently added a similar feature.

Diamond isn’t convinced that this is the

same thing, though. “It’s very hard to have this experience in a streaming service where there’s no friction to collecting something. It’s meaningless. You have to have some form of friction there to make it meaningful,” he says.

Actually, Bandcamp isn’t anti-streaming. You’ve been able to stream music from artists’ Bandcamp profiles for a long time now, mainly in order to try before buying. And alongside the social additions to the service – including the ability to follow other fans and artists – there’s a Music Feed feature showing what those people have been buying.

It makes Bandcamp a curated streaming music service of sorts. “The feed plays from track to track and it kind of becomes a personalised radio station programmed by the people’s tastes you respect enough to actually follow,” is how Diamond frames it.

“We brought that into our mobile app relatively recently and it becomes this rabbit hole of music discovery that’s

extremely fun to go down. Whenever I’m commuting, I just put on the feed and use it to quickly dig through stuff I would never otherwise encounter.”

Whereas Bandcamp was initially purely about buying – whether digitally, physically or frequently both – it’s becoming more about listening, with the company’s smartphone apps providing fans with access to their collections on the go .

“People are moving away from downloads, although there will always be people who want the high-quality file they can take offline,” says Diamond.

“What we’re seeing more and more is providing access with these fan accounts. Yes, you get a download, but what it’s really about – besides supporting the artist – is getting instant access from anywhere.”

COVERFEATURE

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Bandcamp is driving spend – real spend Diamond also claims that a recent study of around 50,000 Bandcamp users (examining their buying habits before and after getting fan accounts) found that, once they got an account, their spending doubled – a sign that the social features and music feed are having a real impact on artist income. Of course, this is somewhat self-fulfilling as these are consumers more liable to spend anyway, but this does show how acts and platforms can maximise the spend of super-fans.

“The fundamental fact that Bandcamp is based on is that fans want to support the artists they love and our job is to support that connection by giving fans easy ways to express their support,” he says.

Artists who sold at least one item

via Bandcamp in 2013

600,000

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“We’ve even toyed with the idea of instead of having ‘buy now’ maybe we should test what would happen if it just says ‘support’ – namely here’s what you get if you support the artist.”

More platforms should be making a Bandcamp connection It remains surprising to sandbox that streaming music firms – Spotify, Beats Music, Deezer and the rest – haven’t been beating a path to Bandcamp’s door to find a way of building stronger links from their own services to its community of supporters.

Spotify’s merchandise deal with Topspin was a step in the right direction, but there is a lot more scope for these companies to forge links with the likes of Bandcamp, PledgeMusic, Kickstarter, BandPage and other startups that have genuine goodwill with musicians.

“I would love to have that happen: I know Spotify did a deal with Topspin to buy merchandise, but

limiting it to merch is unfortunate. It does seem like an obvious thing for them to do ,” says Diamond.

However, he has some sharp words for the streaming services. “It’s really interesting that you don’t hear from more artists talking about how much they love that model,” he says.

“You hear it from executives at the top level of the companies who stand to make millions from the artists’ work. That’s a warranted debate that’s going on: what’s good for musicians in streaming?”

Filling the Facebook gap

As sandbox sees it, though, the biggest opportunity for Bandcamp may be less about a comparison with Spotify and more about filling a potential gap being left by Facebook in being the platform to keep artists connected to their fans.

On Facebook, it’s no secret that the “organic” (i.e. unpaid) reach of pages has been falling, leaving many artists and labels wondering why their posts are only seen by

a small percentage of the fans who clicked on a Like button to receive them.

Conspiracy theories abound about Facebook pushing people to pay for ads. But the social network argues that, with an average of 1,500 potential stories from friends and pages available any time a user checks their news feed, it has to find a way to boil that down to (again, on average) 300 of the most relevant updates.

It’s a familiar debate, but where could Bandcamp fit in? For those artists using the service, it could become a more reliable way to get their news and new music in front of their keenest fans. Especially if they then own the data on those social interactions.

“This is another thing we’re working on,” says Diamond. “I’ve experienced this pain first-hand: we have a huge number of people who like us on Facebook , but when you do a post to 50,000-odd fans, only 500 actually see it.” That said, further details on what Bandcamp is working on are under wraps for now.

He’s clear on the data question, though. “We have felt from the beginning that when you follow an artist on Bandcamp, that data – who’s following them – belongs to the artist. Zoë Keating can go into her Bandcamp account and get all of her emails whenever she wants. That’s not something we mess with at all.”

If Bandcamp has ambitions to become a true social music network – and don’t forget how many people have tried and failed – it has some work to do. For example, figuring out how to lower the barriers to let more fans in to its community who haven’t made a purchase yet. In the meantime, Bandcamp has some ambitious plans to continue improving its apps which will be made public in the months ahead.

COVERFEATURE

The company is also part of a wider cultural shift that’s happening in the music industry as artists realise that they’re not just powerless and passive observers of digital music trends. They can make their own luck, build their own tribes and hustle to build sustainable careers.

“All of the people who I’ve seen who are successful on Bandcamp, they’re not unified by any particular genre,” asserts Diamond. “The unifying factor is that they hustle a lot, both online and offline. They talk to their fans a lot, they’re constantly trying new things and they make that direct connection available.”

He concludes, “Where it’s not successful is where people say ‘I’m using this distributor, my music’s up on Spotify and iTunes and, hey, I made this Bandcamp page and uploaded the music: why isn’t anything happening?’ The key is providing the opportunities for fans to really support you.” :)

Total sales via Bandcamp

to date

$70m

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TOOLS WHAAM

This fortnight we look at Whaam , a new Swedish startup aiming to help music companies improve the online presentation of their acts through an attractive and simple showcase widget and a new Facebook app.

“We want to give musicians out there the deserving chance to show more of themselves and promote more of their music,” says Whaam’s launch statement. “We want others who write, show, discuss, embed and breathe music to have a way to present a band or an artist as they should be presented.”

The startup’s Showcase Widget is as simple an idea as you might expect: within a few minutes and steps you design an interactive embeddable widget, providing the artist’s info, image and links to content on SoundCloud, Deezer, Spotify, WiMP and

YouTube (all the streams are played within the widget or linked to the relevant desktop apps), as well as to profiles on Facebook , Twitter and (shortly) Instagram. The widget can then be embedded on any website or linked to in order to provide a press kit of sorts.

We asked Fredrik Nederby, Whaam’s co-founder, how the company’s proposition differs from that of similar services. He said that the products of the likes of BandPage are aimed more towards single artists, while Whaam seeks to reach out to the companies behind various acts. At this point he highlighted the company’s second product, which has only just been released: the Whaam Facebook App enables users to transfer their showcases to their Facebook pages, again with simple and attractive execution.

Although Whaam remains rather low-profile, focusing initially on reaching out to

companies based in Sweden, the startup has already secured a few interesting users – notably Sony Music Sweden for the Facebook page of its playlisting service Filtr. Filtr’s profile on the social network now has a new tab (dubbed Spellistor) handled by Whaam’s Facebook app, consisting of a grid-like interface featuring links to themed Spotify playlists.

Other music companies using Whaam’s products include the Summerburst festival, booking agency SeaWiik Music and the indie label and publisher TEN Music Group, which features its artists on its Facebook page using Whaam’s app.

Whaam’s widget remains free to use and the company will soon introduce a paid tier for its Facebook app. Pricing for the latter has not been disclosed yet, but Nederby indicated that, for the time being, the company is looking at this on a case-by-case basis with a view to a model based on the number of impressions in the future. :)

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The latest projects from the digital marketing arena CAMPAIGNSLive streaming of concerts is old hat now, especially with YouTube and iTunes stamping their presence all over the sector in recent years.Live streaming into a TV ad break is, however, another matter entirely and is what Sam Smith did in the UK last Friday (30th May) – taking over the entire 10.45pm ad break during Alan Carr: Chatty Man on Channel 4.

The whole initiative was driven in partnership with Google Play and production agency The Outfit to promote the former’s digital music offering. Smith was playing at the Roundhouse in London that night and his show was timed so that his encore, where he played his current single ‘Stay With Me’, could be fed into the ad break.

The full live performance was also made available on Google Play after the event for on-demand streaming.

“We’re delighted at the success of our world-first Google Play live ad,” said Azi Eftekhari from Google Play. “Aside from the positive feedback from the millions of music fans that watched it live, we’ve seen a really good bump in sales on the Play Store, which is exactly what we were hoping for. We want this to be the first of many close partnerships with the music industry.”

Smith had already been named as the winner of both the BBC’s Sound Of 2014

poll and the BRITs Critics’ Choice, so there was a huge amount of momentum (and marketing spend) in the campaign already over the past six months; but the ad break takeover was a global first and all of this coalesced to drive just over 100k sales of his debut album (In The Lonely Hour) in the UK.

We have written about artists using Soundrop as part of their marketing a number of times in the past – noting how it’s a good way to engage users within the Spotify desktop client and drive streams of new tracks and catalogue.

German rapper Kollegah is the latest to use Soundrop and it is the impact of his fan chat that illustrates how the platform is growing in importance. Thomas Ford, CMO at Soundrop, shared some stats with sandbox on the event and how it compares to previous chats.

Kollegah had 11,546 real-time listeners during the event – almost doubling Soundrop’s previous record of 6,069 listeners for a live chat. This helped push his album, King, to become the second most streamed album on Spotify that week.

Ford added that there was a 6.6% growth

in daily streams from the event and that 44,220 uniques joined the Soundrop room during the day. Fans also sent 11,361 messages during the event, showing there was a high level of engagement with what was happening.

Even though streaming royalty rates are still being fought over, the fact remains that it will be an increasingly significant part of artist income, especially as CD and download income declines. This means that artists are going to have to look at ways to drive streams on the likes of Spotify. You can go the Vulpeck route and try and persuade fans to stream your (silent) album as a bit of a marketing wheeze and then risk Spotify removing it. Or you can take to platforms like Soundrop to boost streams but also foster a sense of fan involvement that can be built on over the long term.

KOLLEGAH SOUNDROPS IT LIKE IT’S HOTSAM SMITH’S LIVE OUTBREAK

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The latest projects from the digital marketing arena CAMPAIGNS

Miller Genuine Draft has partnered with Mixcloud to create a worldwide DJ competition called Miller SoundClash.

By submitting 15-30-minute mixes via Mixcloud , entrants stand a chance of being picked for a showcase battle in Las Vegas. The top prize is a support slot with, according to Miller, a still unannounced, “global superstar” at the Marquee club. Additional prizes include an all-expenses-paid VIP trip as well as a DJ Mag profile and trophy.

The entrants must get at least 100 plays of their mix to be considered by the panel of judges in order to pass through to the next ‘battle’ level. Mixcloud has been an important community for DJs for some time now and was approached by Miller to activate the SoundClash concept at a global and a local level. According to Ben

Lawrence at Mixcloud, the competition had over 400 participants and generated hundreds of thousands of listens to the entrants’ mixes.

The EDM genre has been booming in the past few years. Recently YouTube announced its latest online video guide aimed at the dance sector which covers a variety of areas including community development, creating playlists and driving purchases among viewers. FBi Radio station in Australia also recently announced the launch of FBi Click, a 24-hour digital station with a focus on electronic music. The recent huge success of Swedish House Mafia, Skrillex, Calvin Harris and Deadmau5 have all been part of making the genre popular and shows a shift for dance music from a niche (albeit significant) genre to now being part of the mainstream.

MILLER AND MIXCLOUD DJ COMPETITION

Talent competitions are certainly in the air at the moment. Sony Xperia has launched the #GetRecordDeal competition together with Sony UK.

The contest is fairly straightforward whereby anyone in the world can upload a video to YouTube containing original music through art community platform, Talenthouse.

Sony Xperia will, together with guest judges, choose a final winner – but bands also have a chance of winning the community choice where fans can vote on Facebook and Twitter.

The community choice includes a price of $2,000 and promotion across Sony Xperia’s social channels as well as on Xperia Lounge. Xperia Lounge, available on Google Play already, contains tips and

introductions from judges. The winning artist won’t be announced until 18th August, with fans being able to vote from 14th July.

The overall winner will, amongst other things, get two tracks recorded, with one digital single release guaranteed by Sony Music UK, including full promotion and PR, with options for an album deal as well as travel to, and accommodation in, London.

It’s certainly a distinctive way to promote and market the Sony Xperia app as well as create engagement with fans from an early stage. Keeping up with the likes of Apple and Samsung is not a simple task, but perhaps the contest can help promote the Sony Xperia brand through engagement from hopeful artists eager to get a foot in the door.

SONY XPERIA AND SONY UK LAUNCHES #GETRECORDDEAL

BEHIND THE CAMPAIGN PHARRELL

BEHIND THE CAMPAIGNPHARRELL

was bigger than ‘Blurred Lines’ and ‘Get Lucky’.

It all exploded from the 24 Hours Of Happy video. That made a lot of DJs go back and fall in love with the song. That is testament to the ability of a visual to change the complexion of an album campaign and a song.

The video was an idea that he had developed with the director. His

goal was to do something that was groundbreaking and refocus the song in front of the audience. It was premiered at 24hoursofhappy.com so as a viewer you could pick your hour and watch the performance. There were cameos from people like Kelly Osbourne, Magic Johnson and Odd Future. There was always a

chance for discovery at every point [where people looked for the cameos].

It took a little bit longer in the US [to take off]. The UK and Europe were way ahead with it – as was Australia. Then

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Pharrell had three of the biggest songs of 2013 – as guest vocalist on two and lead vocalist on the other – that helped position him as a solo act and not just a super-producer and member of N*E*R*D. The runaway success of ‘Happy’ meant the release of his second solo album, G I R L, had to be brought forward several months, making digital a key component in this swift turnaround. SCoTT GREER, Columbia’s SVP of marketing, explains how a 24-hour video, major brand partners and the United Nations’ International Day of Happiness elevated this far above a run of the mill campaign – even if he couldn’t remember recording ‘Get Lucky’.

Daft Punk campaign was the starting pistol Prior to March 2013 [with ‘Get Lucky’], this was an artist who was in a very different place musically. I met him in January 2013 at a Solange show and we had just signed him to the label. We were well into the Daft Punk campaign, behind the scenes, and I was singing ‘ Get Lucky ’ to him and he was like, “Nope! No recollection!” I thought it was because I was a terrible

singer so I sang ‘Lose Yourself To Dance’

and he was like, “Nope! Doesn’t ring a bell!”

The next day I met Thomas

[Bangalter] and Guy-Manuel [de

Homem-

Christo] from Daft Punk and told them that I’d met Pharrell but couldn’t believe I sang him those two songs and he was acting like he had no recollection of them. They said that was understandable as he’d never heard the song. He had not heard the song! He got to the studio jetlagged, had an energy pill and started spitting out the lyrics never having heard the song until the guys actually played it to him the week after I met him.

The Daft Punk campaign started in earnest in March with the marketing campaign – but the reveal that Pharrell was on the song did not happen until Coachella which was in the second week of April. Then there was ‘ Blurred Lines ’ which came about around the same time. So there were these two tracks that ran parallel with each other and became the songs of the summer featuring his vocals.

The slow burn of the Despicable Me 2 soundtrack At the height of those two songs [‘Get Lucky’ and ‘Blurred Lines’] there was a blockbuster film, Despicable Me 2 , released which had the song ‘Happy’. It was on the soundtrack which was released through an arm of Universal Pictures. At the time it was just glossed over and didn’t get any traction. I’m not sure why. I guess it wasn’t worked as a single; it was worked as a companion to the film. It is fascinating to think

how big that song became. It

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it picked up in the US. It was completely organic. In the US it started gaining traction at the end of 2013 and into January when we went to radio with it.

As we saw that gain traction, we struck a deal with Universal Pictures for the song.

It naturally became the first single from the album. In the past year he was working on finishing the album, but with the demands on his time and the success of ‘Blurred Lines’ and ‘Get Lucky’ – as well as being asked to produce tracks – it became quite a challenge to finish the record. As that started to heat up, it was full speed ahead to finish the album.

Major brand partnerships took it into the heart of the mainstreamIn January in the US we had the advertising campaign for the Beats Pill . So alongside this organic traction online for the video, we also had a high-profile TV campaign that he appeared in where they replicated the ‘Happy’ video . There was also the Fiat campaign that P Diddy appeared in that used the song. Then also in January it was announced the song had been nominated for an Academy Award. All of this organic momentum was happening and it culminated in his multiple wins at the Grammys. That was like his connection into homes in America.

In March, Red Bull used ‘Come Get It Bae’ for its spring TV campaign. The song is also used in a Uniqlo campaign that Pharrell is tied into. We also worked with TNT, the network that carries the NBA playoffs, and shot a clip of him singing ‘Come Get It Bae’ that is cut in with the NBA basketball footage. So there are

three different media campaigns featuring that song. He also performed at the iHeartRadio Awards, The Voice and Jimmy Kimmell. The resulting sales impact was that the single was up 250%.

Awards season, Coachella and pulling the album release forward‘Happy’ was only getting started at US radio when the Grammys happened. Then there were the announcements about the Oscars and that he was going to perform there. Then the song was at #1 on iTunes and with all this profile he couldn’t be any hotter. If he couldn’t get any hotter we knew we had to finish the album and get it out. In a short period of time we

assembled the album, finished the packaging and decided we were going to release the album the night after the Oscars. He had a huge global platform to launch his album and connect the dots back to ‘Happy’.

There was a strategic move by Rob Stringer, our chairman, and he wanted to make sure we were

maximising the global heat around this artist – and to launch the album off the back of that.

He had not performed a full live set until Coachella. He was very visible in terms of doing TV and radio interviews and other promotion globally. The challenge was how we connected all this visibility around Pharrell and drew attention to the album – connecting

BEHIND THE CAMPAIGNPHARRELL

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BEHIND THE CAMPAIGNPHARRELL

the dots to the album. The album was announced 17 days before its release. How do you use those 17 days before the album to connect the dots to all those people globally who had grown to be a fan of Pharrell?

Based on his schedule, there was no time to tour. Coachella became the big moment where he put everything together in terms of a full set.

He performed a 12-minute medley at the NBA All Star Weekend in February where he had a number of the guest artists who appeared with him in the past like Nelly, Snoop Dogg and Diddy.

That showed the audience that might have only known ‘Happy’, ‘Blurred Lines’ and ‘Get Lucky’ that he was an artist who had a great deal of depth to his career with a huge number of hit songs.

iTunes pre-release stream of the album and the absence of windowingA week before release we launched the album stream on iTunes. As people were buying what was the #1 single on the iTunes chart there was an opportunity to dig deeper and discover his body of work. At the time we were selling a couple of hundred thousand singles a week so you had all of these millions of people coming to the store to buy Pharrell so it was a great way to expose the album.

It was a natural progression – especially with the short lead time from announcing the album to being able to hear it. Strategically it made a lot of sense as there wasn’t a huge lead in.

”The word of mouth on the album was

such that when it came out the second half of the opening week’s sales actually increased – and increased physically in the US. It went beyond the initial forecast of what we were hoping to sell in that first week.”

Since that first week when digital sales were 62%, sales have sprinted physically to the point where they are now over 60% physical.

My goal is to get the album spread as widely as possible to where people are consuming music and however they are consuming music.

That communication level where people are sharing it – whether they are social or Spotify or social on Rdio or making playlists on Beats – is an important part of the word of mouth around how music is passed along and it creates that organic virality.

Social and viral selfiesBecause we had a short window of time to promote the album, it was about connecting the dots from ‘Happy’ to the album. The album cover played a role in that – and in the most simplistic way. The Australian label started posting selfies of themselves and fans in robes [like the album cover]. That is the beautiful thing about marketing these days – it goes global on music. That spread around the world and people started posting selfies of themselves in robes.

Pharrell and his team picked up on that and reposted them on Instagram. It was a great way to create a fan-activated campaign that Pharrell acknowledged.

The UN’s International Day of HappinessIn January when we were talking about what we were going to do with the campaign we discovered that there was an International Day Of Happiness – a specific day that was sponsored by the United Nations.

We thought we should have Pharrell as the ambassador for the official International Day Of Happiness. I went to the UN and discussed ways we could collaborate. They were thrilled with the idea and I worked with the UN Foundation to raise awareness of the charity organisation.

We set up a webpage for people to participate in the official International Day Of Happiness [on 20th March] and got fans to post videos from around the world celebrating the day. We went through the time zones and had fans post their videos in their particular time zones.

As we went through all the time zones in the world we gathered up clips that were submitted and created a super-‘Happy’ video. It was like the unofficial UGC version of ‘Happy’ that ended up being a 12-minute

video with the brilliant clips from around the world. It raised

awareness for the UN’s causes and also raised some money. There were 250m impressions on that day alone. :)

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