As someone who’s always worked in digital marketing for a record label, my perspective will naturally gravitate to those areas, but this subject affects the wider industry and has been something I’ve thought about for a few years prior to seeing it crop up in more conversations across the music industry. Why do we have so many silos in the industry? And how can that segregation be improved?
The main silos that I see existing are record labels, publishers, agents (other live promotions) and, to some degree, management. With management being the centre pin for an artist’s campaign, they have a substantial amount of power to pull the communication between these elements together and help bring about a cohesive strategy.
I feel a significant amount of the problem occurs from misusage (or non-usage) of fanbase data and where that is implemented to help artists improve/feed their revenue streams. It’s not the sole responsibility, but part of this lies with management and their ability or willingness to invest time and resources into marketing to pull together silos to share and develop together. As artists and their management retain data and channels that are developed, they should also be investing time and finance to nurture fanbases, and then use the appropriate tools and knowledge to target and engage those fans.
Here’s an example of a negative effect silos can create. Most labels collect mass amounts of data from retargeting pixels and artist channels to market the recorded music. From this data, multiple pools and segmentations can be created and strategically implemented to serve targeted ads. These pools aren’t necessarily just people who listen to recorded music. They are most likely also inclined to buy tickets and merchandise as well. But if a record label doesn’t generate income, or has a very low percentage deal on live or merchandise revenue, they are less inclined to invest in that area, and the data that’s gathered may go unused. So unless resource and data are pooled together, the artist could be missing out on further fan engagement and revenue from other silos outside of recorded music.
Sometimes things aren’t as straightforward as the example I give above, and I know management teams that are working in a more cohesive way already. But a large part of the power to narrow the distance between silos in the industry lies with them, and there is still a long way to go. With a cohesive campaign where strategy, plans and data are pooled together in order to work towards growth in all silos in the industry, we’ll be providing artists with a better service and strengthening their income. The ultimate end goal.
This is the latest in a series of posts from key industry influencers from the world over, whom you’ll be able to meet at Midem 2017. More soon!
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