Thursday, June 18, 2009

Billboard/AdWeek Music and Advertising Conference

The Power Play: Connecting Brands And Bands 
June 05, 2009 - Branding 

Originally written by By Rachel Barnhard, N.Y.and published in Billboard 

The connection between artists and brands, and the future of this relationship, was the focal point of “The Power of Connecting Brands and Bands” panel at Billboard and Adweek’s Music and Advertising Conference in New York.

Moderator Mike Tunnicliffe of Filament Entertainment/Tuna Music led participants in the discussion and all agreed that differentiation is the driving force behind the use of music in a branding campaign. The artist should go into the relationship with the ability to communicate how his or her music fits the brand and how it can make the brand stand out in the mind of the consumer. "You have to know your story, you have to be succinct and it has to create differentiating value," voiced David Keefe of Siegel & Gale. 

If you are aware of this, you can also ensure that the sponsorship opportunities you pursue do not harm the connection with your fans: "[fans] welcome brands if they're getting something beneficial and worthwhile out of it," Tunnicliffe noted. And maintaining the fan relationship is key. "The reason people want to do things with Rihanna or Madonna is because of who their fans are," said panelist Larry Mills of Getty Images.

This prompted moderator Tunnicliffe to encourage panelists to move the case studies into a more realistic level, with less focus on pure celebrity endorsements. But, if brands are not solely using endorsements for the value of the celebrity of an artist, and if they're willing to take on less developed artists, are brands becoming the new record label? 

Jack Horner, founder of FRUKT suggested that a vacuum has been created in the wake of record labels' slowing growth. "It's no surprise that so many brands are getting involved with talent competitions because [young artists want] an opportunity to get discovered." He continued by outlining new ways brands can play different parts of the record label role in an artist's career. For example, Joe Killian of Momentum Worldwide cited Denny's effort to bring in the late-night high school crowd by offering free food to local bands after their gigs. This used to be a service the labels provided in the form of a per-diem. 

The panelists wrapped up with a discussion of the future of the industry. Mills imagined that we will see more promotions where a brand affiliates with a small group or genre of artists, and cited examples like Heineken, Jagermeister and Converse, which all worked with communities of artists rather than individual endorsements. Still, you cannot depend on advertising to sell your music. As Horner states, "You have to find other places where your music can play and work all of those outlets as creatively as you can," because you cannot control what happens on the cutting room floor.

Saturday, May 2, 2009

The Branding and Banding of Green

Originally published in Ad Week on 30th April 2009

By Mike Tunnicliffe

Spring is in the air and "green" is high on the agenda for both musicians and major brands -- but not necessarily together. Could greater collaboration be a missed opportunity?

The answer to that would seem to be "yes."

Brands and musicians are plowing their green furrows in increasing numbers. More and more marketers are developing their communications strategies to meet consumer demands for environmentally friendly products. "Eco friendliness" is growing exponentially in sectors including household cleaning, appliances, computing, automotive and food. But musicians only seem to come together with "green" brands outside the mainstream, and in low key or specialist ways.

As Billboard magazine's recent Green Issue reported, there's no slowdown in the number of artists embracing environmental issues. Some fairly mainstream and iconic musicians leading the charge include John Legend, Radiohead, Ludacris, Tommy Lee, Pharrell Williams and Feist, as well as more ecologically focused artists like Jack Johnson, Okkervil and Cake. These performers are among those driving the message home to their fans, leading by example. They're reducing their carbon footprint via biodegradable fuel in tour trucks, designing energy-efficient stage sets, running solar-powered recording studios and banning disposable water bottles at their performance venues.

Musicians are also encouraging fans to learn more and participate in socially responsible and cause-related behaviors. For example, Hanson's Take the Walk, which encourages fans to participate in a mile-long barefoot walk with them at each gig, raises awareness of poverty and AIDS in Africa. It also raises funds to send shoes to underprivileged kids there.

John Legend's Show Me Campaign encourages people to take individual action and, according to Billboard, has been a large part of his 2008 Evolver tour where fans can text in donations during the show and visit Show Me displays.
A number of environmental organizations have been tapping into the emotional engagement artists have with their fans. For example, Rock the Earth, which campaigns for and takes action on many environmental issues, has partnered with a number of high-profile artists including Alanis Morisette, Bon Jovi, Sheryl Crowe, Ozzy Osbourne and Tom Petty.

So with all this star power and influence, why aren't we seeing more partnerships with big marketers?

According to Shawn Kilmurray, executive director of Rock the Earth and a music industry veteran, it's not that brands aren't interested; it's that artists are wary of brands that greenwash -- meaning they talk the green talk to lure in consumers, but don't walk the walk. When the Sierra Club, for instance, endorsed Clorox's eco-friendly cleaning line -- and as result gets a share of the profits -- it suffered a backlash from some longtime supporters who thought the club had sold out. Kilmurray points out that artists are worried about losing credibility if they take dollars from unsuitable brands.

Anthony Ackenhoff, co-founder of global music branding and strategy company Frukt, also notes that while artists have got over the notion of selling out to brands, when it comes to their own beliefs and personal interests they're extra careful. Brands, he says, have to pass the sniff test and be able to stand up to scrutiny. If the artist and his or her fans smell a rat, then the artist -- and the brand -- could be damaged.

The stakes are high for all, but there is clearly an opportunity for brands that are genuine in their green/sustainability claims and performances. As the old saying goes, "He [or she] who dares, wins."

Mike Tunnicliffe is a partner at the Filament Entertainment Group. He can be reached at mike@miketunnicliffe.com.

Wednesday, March 18, 2009

Brand New Music Business

Originally published in AdWeek ; March 18th 2009

By Mike Tunnicliffe

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As the financial storm and economic woes blow a chill wind through the stock market, and music stocks in particular take a bashing to end all bashings, is this the end of the music business as we know it?

Quite possibly -- but that's not what we should focus on.

The real issue is that we're at the beginning of a new era. Music is more alive than ever, consumers are listening to more music than ever before, artists are interacting and building bonds with fans across multiple platforms, digital distribution is enabling artists to get their music out to fans for a fraction of the cost of traditional methods, and brands and other alternative marketing partners are being embraced as the new patrons of artists and music. So, yes, it may be the end of the traditional music business as we know it, but for those willing to embrace change it's the start of a brand new paradigm in the entertainment and brand-marketing worlds.

Last year saw the brand-music partnership space explode with never-before-seen collaborations between artists and brands. Highlights from 2008 include:

• The world's largest consumer brands company formed a record label: Procter & Gamble/Def Jam's Tag Records, to help break new urban acts through its advertising.

• Bacardi partnered with British Dance Act, Groove Armada, to build a global marketing strategy based around music.

• Red Bull and Levi's set up labels and studios to help create and break new music.

• MTV Networks' Rock Band franchise sold more downloads than many digital online stores.

A number of new business models and players also emerged, including promoter Live Nation, which signed a series of mega-global stars away from their traditional labels into new deals that have the concert promoter and artist partnering across multiple revenue streams (known as "360 deals"), of which sponsorships and partnerships with brands will be a key source of revenue. Artists included Madonna, Nickelback, Jay Z, Shakira and U2, which signed a slightly less encompassing "270 deal."

The old notion of "selling out" is long gone. Let's face facts, the music and entertainment industries have something that brands want and vice versa. Put simply: Brands offer artists opportunities for exposure and marketing dollars that simply don't exist anymore in traditional music companies. And brands want to tap into those ever-elusive emotional engagements with consumers (fans) that artists seem to have in buckets.

Fans themselves are endorsing the notion that brands are going to be central to the new music economy and ecosystem. A recent survey by Bauer Media in the U.K. showed that 69 percent of those classified as "most passionate" about music thought that brands being involved with music and artists was a good thing.

Another recent survey, from music-branding company Heartbeats International, polled senior brand marketers and found that seven out of 10 marketers see music becoming an increasing part of their tool set going forward. Usage ranges from enhancing TV commercials and other forms of promotional content, to artists collaborations, music in products and the development of a "brand sound" -- a whole other area with massive growth potential for agencies and "sonic branding" specialists.

As often happens in times of economic downturn, new opportunities arise for those willing to flout convention and look forward rather than backward.

So gazing into my crystal ball, what sort of things might we see happening this year? In broad terms the trend will continue of artists increasingly seeking new business partners and associations away from traditional music companies. More specifically:

• A major artist will almost certainly "sign" with a brand to make their new album and content available exclusively through the brands online- and product-distribution networks. Imagine, for example, something like MyCoke Music. Com partnering with The Foo Fighters. The Foo Fighters' legion of fans would then be interacting and engaging with Coke to get access to their favorite band and the artist will have massive promotional support that's just not available from traditional music companies.

• A new breed of very nimble, rapidly evolving music and entertainment companies will emerge to take advantage of the growing number of digital pipelines and increase in branding and partnerships. A combination of ad agency, content owner, talent agency and technology company, perhaps?

• Some of the new players will emerge as leading aggregators of musical content. As the financial pressure continues to mount on traditional music companies, a number of assets will change hands, fueled by investment money that will be increasingly looking for a home in businesses that can be turned around, if leveraged in new and different ways.

• A major smash hit record will break after partnering with a brand and being featured as the brand's signature tune across multiple platforms. A No. 1 hit single courtesy of Pantene shampoo, perhaps?

Whether these particular predictions come true or not, we'll have to see. But what I can predict with some certainty is that we will see some never before thought possible business models, partnerships and collaborations involving music and brands.

Mike Tunnicliffe is a partner at the Filament Entertainment Group. He can be reached at mike@miketunnicliffe.com.

Sunday, March 1, 2009

Tunnicliffe On Tour
Posted by Mike Tunnicliffe on Sunday March 1st 2009 at 10.00PM

Well I'm certainly feeling like I'm on a non stop roadshow.

I'm backwards and forwards to LA on a bi weekly basis , as I join my partners in the most exciting venture to hit the music, branding , technology and entertainment scene for some while Filament Entertainment Group. More details will be brought over the coming weeks , but in the meanwhile check out our website .

Speaking engagements are flooding in like crazy :
  • Last week saw me join the panel of experts at the Digital Music Forum East in New York to tackle the pro's & con's of 360 deals
  • Austin Texas beckons on March 18th where I'll be running a session on fans & brands at The Band Bootcamp sessions , which are being produced by Music Supervisor. Com at South X South West
  • On to Santa Monica on May 6th to appear at Digital Hollywood's Music 2.0 panel - Re-Invention of an Industry Music Power Shift: Artist, Label, Technology, Management & more
  • Europe beckons in early June , when I take part in the inaugural Brands in Entertainment conference in Barcelona
Just in case you want a sneak preview of some of the themes that I cover at these conferences check out the video below:

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Do Those Rascal Flatts Come in a Size 7?

Mutual Brand Benefits Cited as JCPenney and Band Get Back to 'Their Roots'

Multi-platinum country rock act Rascal Flatts is working with JCPenney for a broad marketing and promotional deal, which includes in-store promotion, tour support, merch and TV ads.

The deal kicks off with the April 7 release of the band's new album "Unstoppable" and, according to Billboard.biz, will continue for at least two years, with an option to extend it for more. The deal ties together Rascal Flatts with JCPenney's American Living range of clothes and other household items, which, when launched last year in conjunction with Ralph Lauren, was billed as the biggest merchandising launch in the department store's 105-year history. The original campaign featured a beautiful spot set to Robert Plant and Alison Krauss' "Killing the Blues," which we dubbed one of the year's best ad songs.

This partnership is a continuation of JCPenney's well-executed -- and well-timed -- return to its roots as a retailer serving Middle America with value-priced goods. as SFS pointed out last fall, the appeal of country artists has been growing as the recession has been biting harder, and the country music audience has remained slap-bang in the middle of America, claiming nearly 55% of women and 45% of men.

This partnership seems to hit the spot not only for JCPenney, but also for Rascal Flatts, whose co-manager Doug Nichols told Billboard, "We feel that JCPenney is a partner that can grow our brand and we fully intend to help them grow their brand." About this time last year, the Rascal Flatts was promoting the new Rubix Cube.

The band wrote a track, "American Living," which will serve as the soundtrack for the first TV commercial and will be available on a special version of the "Unstoppable" CD sold only at JCPenney stores. The net proceeds from the sale of the album will be going to JCPenney Afterschool, which provides children in need with access to after-school programs.

JCPenney will also follow band members Jay DeMarcus, Gary LeVox and Joe Don Rooney on tour as they wear the clothing on-stage, and their TV spot and behind-the-scenes footage will run on two large screens during concerts. Fans will be able to purchase American Living-branded tour merch, and the band's 18 tour buses will be splashed with the brand.

All in all, a deep collaboration that hits the spot on a number of counts: It's a good brand fit between the retailer and the act, the band gets great exposure from the collaboration, JC Penney gets a totally relevant multi-platform integrated endorsement from a band that mirrors its values, and, most importantly, fans/consumers get a stack of added-value content, merchandise and connections.

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Mike Tunnicliffe is founder of NY based Tuna Music LLC & a partner at LA based Filament Entertainment 

The Boss Raises Red Flag on Ticketmaster

Springsteen Voices Concern About Effect of Mega-Merger on Fans

Having just recently apologized to fans for the "mistake" of allowing his latest greatest hits album to be exclusively released in Wal-Mart, The Boss is back in action on behalf of the fans, this time giving Ticketmaster a good blasting for the way that it handled the recent sale of tickets for his forthcoming tour.

Springsteen and his manager Jon Landau have vented their anger at Ticketmaster for what they refer to as an "abuse of our fans" after the ticket company redirected customers attempting to buy Springsteen concert tickets to the company's secondary ticketing site, TicketsNow. This site, Springsteen says, "specializes in up-selling tickets at above face value". The redirection -- which occurred when other seats remained available at face value -- has once again raised concern over the dual ownership of both primary and secondary outlets.

"Fans are confused and angry, which is the opposite of what we hoped to accomplish," said Ticketmaster CEO Irving Azoff, who has now issued an open letter of apology to Springsteen and his fans. The company, he says, "will never again link to TicketsNow in a manner that can possibly create any confusion during a high-demand on-sale."

Springsteen and Landau also voiced considerable concern over the potential merger between Ticketmaster and Live Nation, arguing that it would return concert ticketing "to a near monopoly." Similar concerns have been voiced from a number of quarters regarding the ability of Live Nation to allow performers the opportunity to list tickets on the resale system without ever officially listing them in the primary market.

Michael Hershfield, co-founder and CEO of secondary ticketing site Live Stub told SFS that "It is the dirty little secret of the potential merger. This is a substantive issue that regulators and fans should be mindful of."

The gloves are off ... and I think that we can expect a further backlash if the deal goes forward.

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Mike Tunnicliffe is founder of New York-based Tuna Music, & a partner at Los Angeles-based Filament Entertainment 


A Walmart for Music-Brand Deals

Potential Merger of Live Nation, Ticketmaster Could Be Boon for Marketers

Despite a well-publicized spat when Live Nation decided to take all its ticketing contracts in-house and away from Ticketmaster, the two camps appear to have kissed and made up. According to a story in last night's Wall Street Journal, the two companies are well on their way to merging into one mega "360" entertainment powerhouse.

There were so many interesting developments driven by Live Nation last year that, at one stage, we dubbed SFS "All things Live Nation." The concert promoter led the way with a number of ground-breaking "360 deals" that saw artists such as Madonna, Nickelback, Jay-Z, Shakira and U2 embrace totally new business models that incorporated touring, branding, sponsorships, recordings, publishing and merchandise all under one roof.

Looming rival Ticketmaster followed a similar strategy towards the end of the 2008 when it acquired "mega manager" Irving Azoff's Frontline Management, whose 80-strong executive management team controls the careers and revenue streams of some of the biggest names in the business -- i.e., The Eagles, AC/DC, Guns N' Roses, Christina Aguilera, Avril Lavigne and around 200 other acts -- in order to form Ticketmaster Entertainment with a similar objective of leveraging all artists' 360 revenue streams within the same company.

Aside from the obvious corporate intrigue and the massive personalities and egos of the management teams and their stars, the merger of these live music giants presents a potentially fascinating deal for brands. The combined company would put under one roof the ability to have a direct connection with fans through artists and multiple contact points such as ticketing, concerts and sponsorship activation, recordings and distribution of content, merchandising opportunities, celebrity endorsements and much much more. With the ticketing element now a key part, this partnership could take a whole new turn for brands, which will have access to vast amounts of data that can be mined for marketing purposes. Examples could include the profiles of who's buying tickets for particular acts and the relevance of that audience to the brand, what they feel about certain brands and products and their associations with music, what fans are spending on merchandise and associated products, regional skews and, in time, much more complex data mining that will take the whole accountability and effectiveness of brand partnerships to a new level.

As we've said before, the key for the newly combined entity would be for it to understand the brands' requirements, speak the brands' language and understand how the partnerships can help the brands as well as the artists. While I don't doubt that Live Nation/Ticketmaster will want to directly control as much of the interaction with brands as possible, there is a great opportunity here to partner with agencies and specialist entertainment companies who work with brands day in and day out and can help navigate and translate for both Live Nation/Ticketmaster as well as the brands themselves. If Live Nation/Ticketmaster gets these relationships and partnerships right, it could give more traditionally music-related media channels such as MTV, VH1 and Fuse a good run for their money. The new entity would also be a preferred one-stop-shop that's an awful lot better to deal with than going through traditional labels as the entry points to artists.

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Mike Tunnicliffe is founder of NY based Tuna Music LLC & a partner at LA based Filament Entertainment