Billboard.com is reporting that Island Def Jam will include advertising in the new Mariah Carey album that is set to be released on September 15th. Great idea!
I just want to say that I've had this idea since 2006. The idea of incorporating sponsors and/or ads on a run of CDs would cut costs and keep money in the artists hands. This can even work on the local/unsigned level.
IDJ is taking a bigger step by incorporating 34-page booklet which is sponsored by Elle magazine. There are other branded companies within the booklet. It's not your typical "ad" campaign. To me, it's less intruding. The article says IDJ is working on similar ideas for Bon Jovi, Rihanna and Kayne West new albums.
But I don't understand why everyone is up-in-arms over this. Bob Lefsetz says in his blog that, "I truly thought this was a joke." He goes on to say, "If you can tell me how an ad in a CD booklet enhances the listening experience, I’m all ears." Bob, it doesn't enhance the listening experience. It's adapting to the current state of the music business without taking more money out of the artists pocket.
If these sponsorship/ad ideas help labels from NOT taking more money out of the artists hands (360-deals), then I'm all for it. This is exactly what labels should be doing. As a matter of fact, I've said for years that you can create a whole label built on sponsors/ads! As long as the artist was ok with working with the companies, why not? I would let my band have a logo of Honest Tea on the inside/back of their CD if they got a few $1,000 from it to help pay for manufacturing. Why not?
Plus, you would most likely have the companies supporting the artists on their websites and other marketing materials. Mariah's new album booklet will be included in a smaller form in over 500,000 Elle subscribers magazines. That could expose her to 10,000's of new fans!
Ad-supported models are popping up everywhere (no pun intended). I first came up with this plan in 2006 when I was planning to start a label. To offset costs, I wanted to bring in sponsors and advertisers on each run of CDs. I'm glad to see the labels starting to find other ways to make money other than taking it from the artists or the fans with higher prices.
On a fan level, how many of you would care about seeing advertising or sponsorship logos in your jewel cases?
21 comments:
I would really like to hear anyone's side that is against this. Without raising prices (CDs, merch, tickets, etc.) I don't see any other way the labels can find other revenue streams as CD sales drop.
August 5, 2009 at 8:23 AMI'm surprised this hasn't happened a few years ago.
Here's only issue. Not too many folks are buying CDs. I can say for myself. I buy everything on iTunes. CDs are more of a clutter for me. Right now, I think labels should be using product placements in music videos since videos always go viral. Tokio Hotel pioneered viral video product placement if you ask me. Such a brilliant ideas for product placements in their weekly tour videos that averaged 300,000 views each.
August 5, 2009 at 8:48 AMMy band, Stellate, did something very similar to this and it worked very well. It's tough as an independent artist trying to hook up with sponsors, but it can be done. We have plans for doing something like this in the future as well. Independent bands have little to no cash so you do what you gotta do. It is rewarding though when you like the company you're working with and you both hit the same demographic. I'm amazed that it's taken this long for lables to figure it out.
August 5, 2009 at 8:58 AMI'm all for lowering costs on a release but I don't think I would put advertising in my bands CD package. If I did that, what would be next?
August 5, 2009 at 9:00 AMThis is a cool idea. The most important thing to consider is the brand alignment of the band, and the company. If you had for instance hellogoodbye and toms shoes, the alignment is already there; and fans will embrace the sponsorship. However, if you had a company like Tyson Chicken, team up with Never Shout Never, it's a no go for obvious reasons.
August 5, 2009 at 9:15 AMI personally love to see any form of adaptation from labels. Even if there are better ideas out there, this is a positive step in the right direction. Think outside the box!
another reason to buy digitally. (or download off p2p)
August 5, 2009 at 9:35 AMYa I don't really see this taking off. It's exactly what the guy above me said, just another reason to steal music. I don't want to see a monster energy logo right next to the lyrics of my favorite song, I get enough pointless advertisement shoved in my face on tv, through radio, on the internet, and even Tim mentioned not long ago all OVER myspace. The last thing I need is to see advertisements on something I'm paying for strictly to avoid advertisements. How obnoxious.
August 5, 2009 at 10:20 AMLabels have to find new ways to create revenue to make the SAME money they did a few years ago. They aren't trying to make more.
August 5, 2009 at 10:25 AMAnd they HAVE to find ways to do it without taking from bands. You have to look at it from that angle. At least IDJ seems to be trying to find another way to keep profits stable without taking from their artists.
Ads/sponsors will play a larger role in music as we see it everywhere already from Pandora, MySpace and tours.
Bands (indie/unsigned) can also decrease their costs by working with sponsors on their albums as long as their fans can relate to the product/service.
I just don't see anyway around advertising in the future.
maybe it's time for the dying labels to just go out of business. only the innovative will survive. ads in a cd? not innovative.
August 5, 2009 at 10:57 AMI wouldn't mind if the ad was on a separate leaflet, but not on the booklet itself. I don't know...maybe if it was really small. But not like an an entire page of the booklet.
August 5, 2009 at 12:01 PMBut if it's putting a lot of money in the band's pocket, then it's worth the eye sore. If it's not, then what's the point? I have a feeling the label would end up with most of it.
I say this as I look at the nice, uncluttered, perfect booklet for Let's Get It's new EP. I save all my booklets put them on display and I'd hate to have ads. Only reason I buy the CD is for the nice, pretty booklet. Or if I'm getting them signed, I don't want some brand logo there. Not appealing.
August 5, 2009 at 12:08 PMPeople didn't mind the ads that were on our single release because part of the ad was a coupon. We didn't want to just advertise at them, we wanted to give them something in return for their attention. They LOVED it! Buy one get one free made their day.
August 5, 2009 at 12:57 PMI think that it would be best to have the advertising be stand alone so the end user can choose whether to discard it or not...
August 5, 2009 at 3:03 PMThe closer related the advertising is to the band the better the response will be.
Vin, I agree. I think that would work best. Basically, it's a postcard flyer type deal.
August 5, 2009 at 5:05 PMKev,I agree that bands should have a merchandise card in their EPs. Not sure why most labels don't do it.
I think the split in opinions between your take and Lefsetz's is indicative of the difference in your focuses. Bob generally speaks about the top of the biz - the Livenations and Universals and megastar artists, present and past. You generally focus on the indie label and the unsigned band.
August 5, 2009 at 7:46 PMI feel like people will tolerate pretty much anything from a small label or band, because they just want to see them succeed in the big hard biz. But despite the fact that they're raking in less/losing more than during their heyday, nobody's going to feel any sympathy for IDJ or Mariah Carey.
We know our indie faves can barely afford the gas to get their van from one city to the next, and maybe a bite to eat if they're lucky. I don't think anyone's concered that Mariah will (involuntarily) starve.
Right or not, when it's an indie band it feels like a survival tactic. When it's a superstar, it just feels crass.
Honest Tea is impossible to find, but I would loveeee a coupon for it in my CD case.
August 5, 2009 at 8:15 PMJust like European soccer leagues do with their jerseys....
August 5, 2009 at 8:44 PMThis is perfect! I've also had this idea for years. It all about helping each other and becoming a "scene" again.
August 5, 2009 at 9:06 PMLook at any major online video these days mtv.com have ads before every video (movie trailers and such)
Its this outside of the box thinking that is going to allow artist to make money in the business. I already put a post up on craigslist
If it was a product we actually used, and it wouldnt hurt the artworks concept, I would be ok with it.
August 5, 2009 at 10:44 PMI have an idea how about when you buy a CD the first track is an ad. Everytime you listen to the CD you paid for you have to a hear an add for tampons.
August 8, 2009 at 2:18 PM<3
I completely agree with whoever set let the dying labels die, the more labels there are the less incentive to try and work to get signed to a good one is, and the more mediocre bands there are calling themselves "signed" artists (which is extremely annoying). Less competition means more money for the big boy labels, it will come to that eventually I think. I just really really hope I don't have to see an ad for glamour kills or something on the cover of the next all time low cd. And I feel like that's what this will evolve into.
August 9, 2009 at 9:13 PMPost a Comment
Thanks for leaving a comment and please register for our email list!