Logo + nav bar

Monday, 8 November 2010

Why marketers need a clear procurement strategy around the sourcing of music

A few days back I responded to a recent Marketing Week article entiled 'Let the music do the talking'.

This is the link to the article - www.marketingweek.co.uk/in-depth-analysis/features/let-the-music-do-the-talking/3018452.article - and below are my comments:
The article cites that brands and artists are looking for longer term partnerships because of lower than expected ROI from short term campaigns. But by what metrics is ROI measured? Is it just about brand awareness? How often do brands actually measure the cost of the campaign – both music assets and media – against the net effect on their P&L?

When discussing bands and brands, marketers need to take into account the drier topics of procurement and music rights management.

Artists are certainly turning to brands as an alternative source of finance because revenues from CD sales have fallen. But the artist rarely controls all the rights a brand needs. In a typical band/brand partnership, the brand will need to license rights from the artist, record label and music publisher – all of whom may have different agendas. So it’s a complex process.

That’s why marketers need a clear procurement strategy around the sourcing of music – one built on dispassionate competitive tendering. Everyone has an opinion about their favourite track or artist, but this is not the ideal context within which to make purchasing decisions involving a five-figure or occasionally a six-figure investment.

What’s required is best-practice discipline, whereby the merits of artist candidates (and their associated costs) can be benchmarked against objective industry data. In this way, brands can make decisions ruled by their head and supported by their heart, not vice versa.

In these challenging economic times, brand marketing teams are increasingly being scrutinised by their Finance colleagues on the commercial effectiveness of each campaign. This became apparent when we were researching the business model for Resilient Music (www.resilientmusic.com).

We found a growing need for brands to implement a music strategy that allows them to reduce costs by taking greater direct control of the sourcing and purchasing of music for their campaigns. This enables brands to acquire music rights with the same procurement processes as any other service or product in their supply chain.

No comments:

Post a Comment