A Conversation With Claes Loberg, CEO of Australian music service Guvera
An interview originally conducted for The Vine that I published in full at Waycooljnr, the Australian music and marketing blog which I recently began editing in place of founder Nick Crocker:
Q+A with Claes Loberg, CEO of Australian music service Guvera
Australia-based online service Guvera (http://guvera.com) has been making waves among the music industry recently. It offers free high quality (256kbps) downloads to consumers, which are paid for by advertisers who can match particular artists to their brand’s ‘personality’. As you can see by the image to the right, Guvera is not particularly subtle when it comes to marketing.
Waycooljnr editor Andrew McMillen spoke with Guvera CEO Claes Loberg a few days ahead of its worldwide public launch on March 30, 2010.
Andrew: Hey Claes. Can you summarise what Guvera’s all about?
Claes: Here’s the gist of it: advertisers paying for downloads. There’s nothing new about the idea of advertisers actually paying for content. That’s how we’ve been receiving TV for free for all these years. What’s wrong with television at the moment, is that advertising is actually starting to lose value year, on year. People have got the power to click past it, sort of get around the advertising. That’s a reflection of all advertising across the board.
Now that the people are in control, Guvera’s business model is a reversal of the advertising process. Instead of advertisers being the annoying thing they used to be years ago, now they can be a channel that people will want to go to, to get content. It’s trying to change the value proposition away from ads-as-disruptors. It actually pays the artists for the content it’s created, and the people still get it for free.
Full interview over at Waycooljnr.
Filed under Conversations, Marketing, Music | Tags: Advertising, business, claes-loberg, conversation, guvera, Interview, Marketing, Music, nick-crocker, the-vine, waycooljnr | Comment (1)Waycooljnr post: “Why Beggars Group Want You To Repost Free MP3s”
This is a guest post that appeared on Waycooljnr.com.au in November 2009.
Last month, Nick and I went to Perth for One Movement For Music; he as a panel moderator, and I as a reporter for the One Movement blog, which I’d edited since July.
Nick moderated a panel called “Busting Open Digital Myths“. My highlight of the panel was when Nick asked Simon Wheeler - Director of Digital at The Beggars Group, which consists of indie labels like 4AD, Matador Records and XL Recordings - about Beggars’ approach to online promotion, since they’re widely known and loved for allowing music blogs to repost free mp3s. Footage of Simon’s response is embedded below, as well as a transcription underneath.
Simon Wheeler:
“Everything we do is geared around a particular artist or release. One of the challenges we set ourselves - and it’s not a particularly scalable model - is that every campaign we put together around an artist or release is bespoke. It’s quite a labour-intensive way of working, but I think it’s very important that we try to do the record justice. When you’re working with very original artists making original pieces of work, I feel strongly that the marketing around that has got to be original as well.
There’s no standard practice to what we do. There’s a few common traits that we have. One that started in the US particularly is to make an mp3 available when we have an album coming out.
It’s kind of crazy how the music industry works; we shout and tell everyone about a new record. “It’s really exciting, it’s great, you can hear it on the radio.. oh, but actually, you can’t buy it for two or three months. Is that okay? Can you just not download it off of anywhere? Just wait two or three months, we’ll get it in the shops soon!”
So, going against that, we know that fans are passionate about an artist, and they’re very excited about a new album. So to be able to give them something to satiate that demand somewhat has been quite effective. There’s also the purpose of giving people a piece of music to ‘try before they buy’, if you like. We get a lot of love and a lot of coverage in the blog world, because I think our artists are very suited to that world.
We don’t give music blogs free reign, because you’d find that each blog would post a different track from the album, and so ten minutes after you’d publicised the album, people could just go and download the whole album (laughs).
So by making available one chosen, one focus track from a new album - much as you take a track to radio - there’s kind of an unwritten dialogue between us and the bloggers. We don’t tell them to post it, we don’t say they can’t post it; if people post the whole album, we’ll definitely say they can’t do that, and we’ll get it taken down. But they understand that if we post an mp3 to one of our label sites or blogs, then they won’t get any grief from us at all [if they repost it to their blog].
This really helps focus the campaign around a lead track, much as you do when taking a track to radio. There’s no new science here; this is just what the record industry has been doing for decades. We’re just applying that to the digital age.”
I knew that the Matador’s Matablog saw traffic and sales increase after adopting regular mp3 launches, but it was so refreshing to hear Simon’s response. He showed that Beggars Group understand the value in creating a dialogue with music bloggers, as well as giving fans a portable sample of a new album to take with them.
On a national level, contrast Beggars’ approach to what I see each week from major Australian labels, who release key tracks to radio using encrypted software, and who often disable the ability to save the audio file in a portable format.
The Beggars Group music blog strategy filters down to indie labels like Sydney’s Remote Control Records, whose blog regularly reposts promotional downloads from the likes of Matador, XL and 4AD. I interviewed their marketing director, Steve Cross, for Mess+Noise in October.
Simon’s outline above begs further research into how the group measures the return on the free mp3 promotional strategy. We’ll contact him for a guest post in the future, but I’m interested to know how Way Cool Jnr readers interact with label blogs.
Beyond Remote Control, EMI Music have maintained The In Sound From Way Out for over six months now. Though they’ve been shy about giving away too many mp3s just yet - check out the downloads page - their stream of the new Massive Attack EP ‘Splitting The Atom’ brought thousands of new visitors to the blog. (Disclosure: EMI is a Native Digital client)
Australian indie label Speak N Spell recently relaunched their site, which features a blog and free downloads. Sydney’s Difrnt Music are occasionally known to exchange songs for email subscriptions. And Melbourne-based boutique label Hobbledehoy took the unique approach of offering much of their catalogue for free download, in partnership with US provider Gimmesound.
Which other Australian labels see the value in using promotional mp3s to drive music sales and site traffic?
Filed under Marketing, Music | Tags: beggars-group, blog, difrnt-music, discussion, emi-music, free, hobbledehoy-records, indie, label, matablog, mp3, Music, nick-crocker, one-movement, panel, record, remote-control-records, simon-wheeler, speak-n-spell, waycooljnr | Comment (0)Public Relations: Unnecessary Distortion
This Mumbrella article “translates” a ridiculously overwritten Starcom MediaVest Group press release. Excerpt:
Operating outside of the rush of the day to day, but integrated within SMG, the team focuses on using the human condition as a compass for delivering ‘best-in-class’ communications. Its key obsession is understanding where brands live, and seek to live, within the web-like relationships that exist with consumers and their environment.
Fuck off. What’s the point?
Both the writer - probably an eager-to-please junior or intern - and the wider company knew that they were lying, or at least, stretching words far beyond their practical, meaningful application.
Already, the press release - which was likely the result of several hours’ work and several minds’ input - is being lampooned within the advertising community for its doublespeak, and for blurring the edges between reality and marketing.
It happens everywhere. That’s the whole premise behind public relations - a constant, concerted attempt to shape our opinions and perceptions.
An entire industry founded on unnecessary distortion. Unnecessary to me, because I value honesty more than cleverly-written releases that mean approximately zero in the grand strategy.
So, what’s the point?
Who’s impressed by superfluous press releases, anymore?
I’m all for receiving information from sources I care about - companies, individuals, brands, bands - but if overblown press releases are just a waste of everyone’s time, then why the fuck does the industry survive?
Filed under Marketing | Tags: Advertising, Brands, distortion, doublespeak, Marketing, mumbrella, press release, public relations, starcom | Comment (0)Content Analysis: National Australia Bank’s Songwriting Competition
National Australia Bank (NAB) debuted a songwriting competition in April 2008 to commemorate 150 years’ banking service. In their words, it’s “initiative designed to inspire, unearth, and educate Australia’s next generation of great song writer”.
Awesome! Let’s examine their execution.
Their method of presentation is out-dated, very web 1.0, if you will. The competition barriers presented are very limiting, especially for the lyrics section - “write lyrics to one of these three songs”. No streaming video; very little interaction between those who wish to enter and what the company is trying to represent.
It’s all very static. “This is the world we’ve defined, these are the rules, play within them or get lost.”
Hilariously, they ask for all entries to be mailed as a playable audio CD to a physical address. How very 90s. NAB are a bank with access to huge resources. Why couldn’t they source a vendor to build a MP3 uploader? Or commission a YouTube channel (or equivalent) solely for entrants to submit their songs in video form? This would allow them to see the songs being played live and to judge the marketability of each entrant.
But now I’m thinking outside of the confines of the competition, which exists primarily to find and promote songwriting talent. Not whether or not the artist is attractive or performs well in front of a camera.
The site is very vague with regard to the competition terms.
“Get your song recorded in a major recording studio.” Which one, with which producer?
“Win the opportunity to have the song performed live at a major Melbourne music event, late 2008.” Which one?
These are important questions that any serious entrant would want answered before they devote their time to the project. Why would a writer of a plaintive, introspective acoustic guitar-accompanied piece want to record with, for example, an electronic producer? Similarly, wouldn’t the same performer be discouraged from entering if NAB stated that the song would only be played between bands at a dance music festival?
It’s this ambiguity that robs the competition of a clear goal. It’s as if it were defined from a high-level, upper management perspective, and the marketing department couldn’t organise the specifics in time for the project launch. And then the content wasn’t updated once these decisions were made.
This is a real flaw; it makes the whole exercise appear as a self-serving, NAB-centric exercise instead of focussing on the artistic talents that they’re attempting to promote.
Community and sharing are what’s missing. Having the competition judged by four music industry ‘experts’ (plus a bank manager - wtf?) is fine to an extent, but very old-school thinking. And very web 1.0. Music is evolving online at a far greater rate than most labels can adapt. Hence CD sales diving, the increased popularity of digital downloads, the massive exposure gained by bands whose fanbases existed online before any label had heard of them (Arctic Monkeys, Black Kids, Eddy Current Suppression Ring, you know)…
So for them to seal off the competition so tightly is a major missed opportunity. No interactivity, no user rating, no user commenting.
The primary competition could still exist in this format, but NAB could also have an off-shoot for ‘fan’s choice’ or ‘blogger’s choice’, wherein Australian music bloggers are sourced to critique entrants’ work.
The Judging Panel page is also very static. Okay, so this Ian James guy has “credible and intimate knowledge of the Australian music business that is second to none” - link me to more of his work. I want to read his blog. He doesn’t have one? Then why is he on the panel?
There was a time and a place for these reputable, experienced figures within the Australian music industry. But if they’re not actively engaging with the Australian music community via the internet - blogging, starting discussions with fans, sharing their thoughts on what’s occurring within such a crucial entertainment industry - then they are not relevant. This point is hugely important to me: I’m easily irritated by high-level theoretical bullshit when it comes to music.
The only relevant dude on the panel is Paul Anthony, CEO of Rumblefish, a company aimed at “bringing a creative, financial and legal perspective to any licensing project with music from a pre-cleared catalog of handpicked artists”.
Interesting concept, and it seems to be succeeding. It certainly demands further study. Here’s an article from May 2005 profiling Anthony and Rumblefish. An excerpt:
Then Anthony hooked up with Neal Stewart, brand manager for Pabst Brewing’s resurgent Pabst Blue Ribbon beer, for what became the first test of Anthony’s bigger idea of music identity. Because PBR wanted to maintain a kind of grass-roots image — and also because its marketing budget was lean — the brand wanted to be associated not with hit songs but with up-and-coming local bands that connected with its product. Rumblefish researched the music scenes in two markets, Kansas City and Cleveland, identified a handful of appropriate bands, and executed a quasi-underground program that involved helping those artists cut singles (in PBR-branded packaging) that they could sell or give away as promotions. That way PBR was positioned as a supporter of local indie music — a part of the scene rather than just some outsider trying to exploit it.
If I were serious about establishing NAB as a committed “grass roots” backer of Australian’s music by differentiating from competitors and connecting to the younger generation, I’d:
- Get several popular indie labels on board (Modular, Speak N Spell, Eleven, Ivy League, Mistletone, Inertia, Elefant Traks, Dew Process, Plus One etc) with partnership deals
- Recruit passionate fans of bands on these labels to initiate discussions within popular Australian music portals - FasterLouder, inthemix, Mess+Noise etc. This one is hard, because it has to be believable and not fabricated; it also introduces a conflict of interests into the equation, as fans will want to assist artists they like, but might not want to be seen as being involved with a corporate agenda
- Recruit popular/relevant artists from those indie labels to appear as guests or judges or anything associated with the project. This lends social proof: as long as a project or initiative is genuine, worth supporting and is associated with musicians that I respect, I’d give it my attention
- Book an associated promotional tour featuring bands from the indie labels. Include the website link on the tour artwork, but don’t ask bands to mention the project/initiative: if they believe in it, they will mention it without being prodded. The promotional nature of the tour should not deter fans from attending, as long as the line-up is attractive. See: MySpace Secret Shows, which are thoroughly covered with MySpace advertising but the kids don’t care because they’re knowingly partaking in an online social movement.
- Contact the top hundred or five hundred Australian music bloggers and give them access to everyone associated with the project. Community involvement is essential: employ someone to personally contact each of these writers, and monitor and respond to every conversation that they start
- Film every element of planning and execution associated with the project and publish online
- Write about every element of planning and execution associated with the project and publish online
Marketing Juice
I bought a Spring Valley juice at university the other week. Apple and blackcurrant, on a whim - not my usual drink of choice, but it satisfied.
I wasn’t too impressed by the copy on the side of the bottle, though:
After just one sip of this heaven-sent, preservative-free juice, that halo perched precariously above your head will flicker back to life like a broken neon sign. This of course signals the start of repentance for the pain you’ve put your body through over the weekend.
This is stupid, because they’ve defined their target market as young people who get hammered every weekend and only drink juice as a hangover cure. Alcohol-inflicted injury is what I’m lead to believe the ‘pain’ refers to.
This is their marketing ploy. No preservatives. No added sugar. Drink this when you’ve been a dumbshit binge drinker over the weekend.
Not the best assumption to make about your target market, right? The ‘liddle facts‘ under the lid are cute, but they don’t gel with the message on the side of the bottle. And they list an impersonal web address.
Contrast this against the copy on the side of a Boost Juice cup. Verbatim:
So, now you’ve got your Boost. Tell us:
Does it taste amazing?
Did our boosties make it for you in a flash?
Did they make you feel good for coming to Boost today?
Please let us know if we reached our usual giddy heights of brilliance today. We love hearing from you, the great stuff as well as what we can do better!love life
(Janine Allis‘ signature)
I like this a lot. The tense switches are appropriate. She calls the workers - often young females - boosties, which I’d guess would make them like their job a little more. Like Subway’s sandwich artists - or maybe not. Maybe they take the piss out of it and hate their jobs. But the ‘boosties’ I witness usually seem pretty happy.
The copy isn’t overwhelmingly, desperately happy. Just positive overall. And aside from the awesome-tasting juice, the service is one of the reasons I return to Boost. Their assembly line system is tight, even when they’re busy and the queue is dozens deep. Everyone knows what they’re doing, and their work is on display, all the time. Their training regime must kick arse.
And the inclusion of Janine’s address at the end is another nice personal touch. Sure, she’d most likely have assistances reading for her, but I get the distinct impression that I’d receive a reply if I were to email that address. I’ll try it out, and I’ll include a link to this article.
Two different marketing strategies for two different brands targeting two slightly different segments of the juice market. One assumes poor past personal behaviour on their customers’ part; as a result, their tone comes off as haughty, and vaguely offensive. The other makes their loyal customers smile, and extends the opportunity to open a dialogue between producer and consumer.
Which of these is sustainable?
Filed under Marketing | Tags: Juice, Marketing, People, Sustainable | Comments (4)