Tag Archives: Marketing

Music vs The Web: Have We Reached Social Media’s Tipping Point?

facebook_logoThis article originally appeared on Drowned In Sound.

Its been a bumper year for Facebook, on paper at least. Recently they announced that year-on-year revenues were up 60%, with advertising revenue up to $1.8bn. Their daily active user count rose 25% to 728 million people. At this point then, you’d think it would be high-fives all round, with Wall Street giving Zuckerberg and co a hearty pat on the back.

And yet, shortly after this announcement, more than $18bn was wiped from Facebook’s stock value. The reason? One, short sentence: “We did see a decrease in daily users specifically among younger teens.”

Herein lies the problem for Facebook – and indeed any tech company looking to take the IPO path: when advertising is your core product, at some point the balance will tip, driving users – usually starting with the younger ones – away.

Put simply: in order to make money, Facebook must serve ads. In order to make more money, Facebook must serve even more ads – almost certainly putting them on a collision with a critical mass point, where people burn out completely on ads and, at the very least, stop clicking on them or, as is the current case among teens, find other services to use.

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Music, marketing and the race to the bottom

Down, down... I do love it when I read an article that crystallises various random thoughts of my own into a clear and precise view on something. Yesterday, Matt Hawn sent me an article from James Penycate’s Ooh Brilliant blog, various points of which did just that. I’ve made no secret of the fact that I’ve been feeling (not to be too dramatic, but…) a sense of crisis about how exactly music is marketed of late. Facebook is becoming ever-more pointless as a platform from which to market (though perhaps not as a platform to carry word of your band – a very key difference). PR coverage on key sites feels like its becoming less meaningful as 500 labels queue up to grab a premiere on The Guardian, Pitchfork, NME or one of the other kingpin sites, which in reality may only be exclusive for an hour and which in my experience often actually drive very few plays. Overall, it feels like rising above the churn of “stuff” to get noticed is getting harder and harder. I won’t repost the main points of the article here but if James’s summary is “less noise, more quality please” (though the article runs far deeper than that) then I wholeheartedly agree. Someone recently commented to me lately that “cultivating media” should be a key element of building an artist up – all the more so now that the days of securing on going campaign-wide coverage via one site/magazine are well and truly over. However, if the media coverage one is securing is nigh-on pointless because it amounts to a mere mention or repost of a press release with no personal touch or passion behind it, it counts for very little. We’re all cheating ourselves here and it is becoming a race to the bottom. That desperately needs to change.

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