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Where do most teenagers listen to music?

August 14, 2012

There appears to be a significant divide between teenagers and adults as to their choices of music services.

According to a recent survey conducted by Nielsen Co, nearly two-thirds of U.S. teenagers under the age of 18 say they  use Youtube, more than any other medium, to listen to music.

 

In addition to treating YouTube as a de facto free music service, young people said they are less inclined than those 18 years old and up to listen to CDs or the radio.

Neither age group reported making much use of Spotify AB, Rhapsody International Inc. or other on-demand streaming music services, though Pandora Media Inc.’s custom online radio service was among the five most-popular methods for both groups.

Among adults, the most popular ways to listen to music were radio (67%), CDs (61%), YouTube (44%), Pandora’s custom-radio service (32%) and Apple Inc.’s iTunes (29%).

Among 13-to-17 year olds, YouTube was the most popular way to listen to music, with 64% using it. Radio was next, with 56%, followed by iTunes (53%), CDs (50%) and Pandora (35%).

This all translates to the many challenges facing record companies as they continue to transition into the digital world.

 

There is very little revenue to be realized for the record companies from a Youtube stream.

Record companies and music publishers typically realize some revenue from advertising that appears with their videos on YouTube. But it is only fractions of a cent per play.

The YouTube app on Apple’s iPhone, iPad and iPod Touch runs no advertising, meaning it generates no revenue for record companies. Although, Apple recently said it would do away with the app.

The massive popularity of YouTube, show that record companies will need to stay nimble in the ever changing world of music monetization.

Filed Under: Marketing Insights, Social Media Marketing

Our 2011 Pick for – Biggest Social Media Marketing Blunder

December 26, 2011

ChapStick—a brand whose marketing I don’t recall ever making any sort of impact. Until now.  ChapStick posted a weird image on Facebook of a woman, backside in the air, looking for her ChapStick behind a couch . Many comments resulted  objecting to the image. What does ChapStick do? They delete their comments. ChapStick’s ads with the line “Be heard at Facebook.com/ChapStick” start to look foolish. People keep commenting. ChapStick keeps deleting. People got angry. ChapStick got worried.  People started commenting about why they can’t see their old comments. ChapStick can’t keep up with all the deleting. Comments are getting through, and they’re nasty. ChapStick for some weird reason doesn’t just delete the image, apologize, or even acknowledge the issue, beyond its infuriating deleting of comments. ChapStick apparently thinks the whole thing will just go away if it can silence enough of its “fans.” Not very smart! Burt’s Bees and Carmex must be thrilled. Larger image after the jump.
ChapStick finally responded—deleting the offending post (it’s gone from the ChapStick website, too) andadding a new Facebook post with a weird semi-apology. “We see that not everyone likes our new ad, and please know that we certainly didn’t mean to offend anyone!” the post says. “Our fans and their voices are at the heart of our new advertising campaign, but we know we don’t always get it right. We’ve removed the image and will share a newer ad with our fans soon!”

Filed Under: Advertising, Social Media Marketing

Facebook lessons from the Luxury Brands

June 26, 2011

Here are 8 of best practices and strategies used for brands on Facebook that were drawn from our friends in the luxury industry:

1. Offer premium content. Lancôme lets visitors upload a photo and virtually try on makeup with its “magic mirror” app. Mercedes-Benz lets fans listen, download, and explore music from its long-running “Mixed Tape” series featuring up-and-coming artists.

2. Keep up the conversation. Brands on Facebook need to be sure to post to their wall regularly, so that they appear in the Facebook feeds of their fans. But not too regularly. Five to ten times a week, as brands like Swarovski do, is probably ideal. More than twenty times a week is overkill and annoying (hint: Oscar de la Renta). Responsiveness to customers is critical too. Brands like Aveda and Dewars make a point of replying to nearly 50% of all posts on their wall by fans.

3. Give customers a voice. It’s hard to interact with your customers on Facebook if you don’t give them a place to express themselves. Thousands of fan photos and videos can be found on BMW’s page.

4. Ask customers to be creative. The most savvy brands inspire their customers to do more than simply upload a pic of their favorite product. Jaeger-LeCoultre invites visitors to design a virtual piece of art featuring one their custom Reverso watches; BMW’s “2Originals” app invites you to create an original film with your Facebook photos to share with your friends.

5. Offer “gated” rewards to only your fans. Facebook’s functionality allows brands to offer specific content and pages that are visible only after “liking” the page—a nice way to attract fans, and reward those who love you most. Belvedere vodka’s landing tab offers photos from an exclusive “haus party” to those who click the “like” button. Oscar de la Renta offered free samples of its new fragrance at launch to Facebook fans only.

6. Integrate Facebook with the rest of your web presence (The Most Important). Facebook is only one part of a brand’s online presence. Smart brands like Audi integrate it with Twitter, YouTube, and their own websites, linking out to them from Facebook, and linking to Facebook prominently on their own websites. Brands like Tory Burch integrate Facebook into every product page on their own website, with a simple “Share” button.

7. Balance global and local. As with any media, international brands must balance global reach with local relevance to customers. The L2 study found that luxury brands that offer localized Facebook tabs or pages (Johnnie Walker has 33 different national pages) have much higher rates of interaction by their fans.

8. Tap into F-commerce. Facebook isn’t just for making friends. It’s good for selling too. Even brands that are not yet selling products entirely within their Facebook page can use it to showcase products, guide the customer to a purchase decision, and then transfer them back to their corporate site for the sale. Bulgari’s customers can browse products in Facebook and click to go directly to their purchase page on the company’s own website.

You can check out all these brands on Facebook!

Filed Under: Social Media Marketing

Are all those Facebook “likes” worth it ?

May 17, 2011

Want to get exclusive content on our brand Facebook page? “Like” us! Want to participate in our fun new contest? “Like” us! Want to take advantage of the discount? “Like” us!

This is the new hot tactic used by marketers nowadays to get their fan count up. They are constructing the “like” walls. A number of big brands, such as Macy’s, 1-800 Flowers, Bud Light, and Gap, practice it.

The logic behind this thinking is simple: We provide valuable incentives in return for the larger community on Facebook. Sounds fair, right? However, you are then faced with the dilemma: Do you want more Likes or do you want more advocates in your community who would have liked you no matter what monetary incentives you are trying to offer?

There are a lot of people out there who are looking to get a quick coupon or discount. After all, who doesn’t like free stuff? There are a number of businesses that offer a cool discount a day/a week on their Facebook page. It seems to work for them. But are they truly building relationships or are they just using their page to broadcast the deals and sell products? Unless you are prepared to offer your community a constant flow of coupons and discounts, the success of any single promotion will be short-lived. I would also question the quality of your fans and if they are truly present on your page. What you want is to build a community of advocates who truly participate, which means a consistent dialogue, smooth feedback loop, and your fans sharing their stories and their experiences with your brand. If you have a large community that is quiet—is it a good thing?

It used to be that un-liking a page was hard; it required several steps and was confusing. Now, it is as easy as clicking the unlike button. A number of brands reported a huge drop-off rate post-promotion. Consensus is that that drop-off rate is on average 50% after the promotion is complete. Meaning that those promotions don’t work. Meaning that you are diluting your fans and depreciating the value of your community.

So instead of “like-gating,” why don’t we provide our fans compelling content and relevant messaging? Why don’t we make it easy for our fans to interact with us and our content? Why not post happy holiday wishes, short trivia questions, interesting polls, and fun videos to help us say communicate our message and truly hear theirs? Why not make it easy and fun for them to share among their friends? And if we must build the “Like walls,” why not be very selective in how we do it?

If you are not creating valuable customer relationships, then does the fan count matter?

Filed Under: Social Media Marketing

Stay Ahead of your Competition – Facebook Advertising Tips

March 17, 2011

As with most things in life, to get ahead of your competition you only need to do a couple of things different to them to make a big difference. It’s no different with Facebook advertising and here are a few small tweaks you can make to your next campaign that can make a real difference to your end result.

Tip #1

This first tip is so obvious you’ll wonder why I’ve included it, but it is amazing how many people don’t do this when using Facebook advertising. Always have a call to action on your Facebook ads. That’s means words to tell your user to take an action. For example, Click here, Call us today, Like us. These are all simple calls to action, and without these you will find your ads tend to have a lower click through rate.

Tip #2

When you create your ad, set it up to use cost per click, not cost per impression. Cost per click means you only get charged when someone physically clicks on your Facebook ad. Cost per impression means you get charged per 1000 impressions and the rate for this is much lower than cost per click. However if you’re new to Facebook advertising and your ads don’t have a high click through rate but do get lots of impressions, you’ll quickly find that changing to cost per click will save you a lot of money.

Tip #3

Facebook have a recommended bidding range when you create an ad. This means the price is for example between 0.30 – 0.70 per click. Try setting your bid to somewhere in the middle of this range when you create your ad. Then work out what your click through rate is. Your click through rate is the percentage of people who click on your ad, compared to the number of impressions. If you can improve your click through rate by changing parts of your ad and split testing, then Facebook will reward you by giving your ad more impressions.

Tip #4

Once you’ve managed to increase your click through rate by split testing your ads, try lowering your bid price. A good click through rate is roughly between 13% – 20%. The reason you should do this is because Facebook advertising reward a good click through rate with more impressions. So you can get the same number of impressions and clicks by lowering your bid price!

Tip #5

When you select your bid price don’t select obvious amounts like 0.25, 0.30, 0.35 etc. Try 0.26 or 0.31 as not as many people will bid on these prices.

These tips are all very small tweaks you can make to your Facebook advertising campaigns. They can really increase the effectiveness of your ads and keep you ahead of your competition. However be sure that you only include them as part of your overall split testing strategy.

Filed Under: Social Media Marketing

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