Measuring the Effectiveness of Your Social Media Campaign

According to an article on Mashable, a lot of artists make the mistake of measuring the success of their social media efforts by the number of fans they get. There are a bunch of other metrics are being ignored, most notably the lifetime value of each customer. Being able to estimate how much money each fan will bring you allows you to make smart investments when attempting to acquire new fans. The Mashable article is titled: “HOW TO: Calculate the ROI of Your Social Media Campaign”
Full Article


Key Takeaways:

There are hundreds of different ways to measure social media, which makes it kind of difficult to wrap your mind around. To help with that, social media metrics can be broken down into three different categories.

  • Quantitative Metrics: These are the metrics that are data-intensive and number-oriented. You can really get overloaded with different metrics here, so the trick is to pick the key metrics that most influence your business and not get bogged down with the rest. Those metrics might include unique visits, page views, followers, demographics, frequency, bounce rate, length of visit or just about any other metric that’s specifically data-oriented.
  • Qualitative Metrics: These are the metrics that have an emotional component to them. For example, if 75% of the people who mention your product online call it “cheap” and only 25% call it “inexpensive,” that’s a qualitative metric that has an impact on your business. There are several companies that provide in-depth analysis of the qualitative metrics online. Some of these include RapLeaf, Nielsen and Adobe Online Marketing Suite.
  • ROI Metrics: In the world of social media, all roads should lead to ROI. After all, during business hours, social media isn’t just about being social, is it? We’re doing it to make money. And if you track what percentage of people you converted from a prospect to a customer on your e-commerce site, or how many people you converted from a prospect to a client on your B2B website, then you’ll be able to measure the success of your social media campaign on an ROI basis.

Break Out Your Thinking Caps for Some Math

The most important formula in social media is your Customer Lifetime Value (CLV). In a very basic sense, Customer Lifetime Value is the amount of revenue a customer will bring to your company over the course of their lifetime with your brand.

So, for example, if you’re a lawn care company and you know that a typical customer spends $80 per month with you and that the average customer stays with your company for 3 years, then your Customer Lifetime Value would be $80 x 12 months x 3 years = $2,880.

Once you know your CLV, you can decide how much you’d like to invest to acquire a customer. This is called your Allowable Cost Per Sale. Many people use 10% of their CLV as a starting point for their Allowable Cost Per Sale. In the example above, your CLV is $2,880 and 10% of your CLV is $288, so your Allowable Cost Per Sale is that number: $288.

A Modern Day Gold Rush (pt. 2)

A list of services that I either have used or will use. For many of those I haven’t used, I plan on checking them out and giving reviews to help you make a decision:

Marketing ToolsTopspin, ReverbNation, CD Baby, Trackbuzzer, FanBridge, Headliner.fm

FundingKickstarter (great idea for a site, it lets artists set up projects with goals so that fans can support the art they consume), ReverbNation “street teams”, ChipIn. You can also include a Paypal button for donations, or an Amazon Simple Pay Donation button. Here is an article from Music Think Tank

Playing More Live Shows — From a Hypebot article “10 Resources That May Help Artists Book More Gigs“: GigMasters (booking platform for artists and talent buyers), GigMaven (free and easy-to-use booking website for musicians; currently available in NY, Los Angeles, San Francisco, Chicago, Boston, Philadelphia, DC, Austin, Phoenix and Ohio), Gigwish (influence venues, promoters and booking agents by enabling an artist’s fans and their local music scene to vote for them), G2.fm (an online booking community where bands and musicians connect with venues by sharing their music), Live Music Machine (get booked anywhere for any type of live music event, as well as getting booked directly from MySpace), MusiGigs (a private beta service that helps artists get booked by connecting venues directly to bands), OnlineGigs (booking and promotional tool, and one of the largest detailed venue databases), ReverbNation’s Gig Finder (search over 100,000 venues and clubs, and locate those that have booked similar Artists), Sonicbids (the largest and most successful online booking service for musicians, bands, managers, promoters, etc., as well as corporations and organizations looking to book artists), SplitGigs (a new social web-app that helps emerging artists find other artists to exchange and share gigs with).

Online Distribution: Tunecore, ReverbNation, Ditto Music (UK based global online distributor worth checking out, I believe they offer free daily reports, 100+ stores), CD Baby, IODA Independent Distribution (Distributes audio and video, they do more work for you, but you must be accepted by the IODA team)

Recording Software — Here is a list that I published near the beginning of the Chi Guy Entertainment Blog. It is in order of popularity according to an article I found in Hypebot: 1. Avid Pro Tools, 2. FL Studio, 3. Steinberg Cubase, 4. Cakewalk Sonar, 5. Apple Logic, 6. Adobe Audition, 7. Apple GarageBand, 8. Sony Sound Forge, 9. MOTU Digital Performer, 10. Ableton Live, 11. Sony Acid, 12. Band-in-a-Box, 13. Steinberg Nuendo, 14. Steinberg Wavelab, 15. Propellerhead Reason

Online Mixing/Mastering: Studio ProsOnline-Mixing.comGotchanoddin.com (specializing in hip hop) and others. I prefer to go to a physical engineer who I have a relationship with for all my mixing/mastering needs.

Video Distribution for artists: YouTube, Vimeo, UStream

A pretty solid list, and I’m sure I’ve missed a bunch. These are the tools, now fly, fly like a bird.

A Modern Day Gold Rush (pt. 1)

Anti label sentiment is reaching a boiling point (most notably NaS’ beef w/ Def Jam and Lupe Fiasco’s beef w/ Atlantic) and it almost seems like a new niche service being offered to independent artists each day. It’s time for artists to cash in on this gold rush.

On October 27 I posted an interview by Young Guru (the sound engineer behind big hip hop stars like Jay-Z and Kanye).  In that interview he said, “What we’re dealing with now is the emergence of independence, right? And the emergence of the Internet. So people are finally waking up to these things that I’ve been saying for, I’d say about 20 years. That you don’t need a record label. At all, whatsoever. I work with ‘em, I know I don’t need ‘em.” He also said, “Don’t deal with the company. Period. Start your own company. This is the perfect time for musical independence. The perfect time.” And he went as far as to call the labels slave masters.

The lesson is clear. If you’re trying to start out as an artist right now don’t focus all of your efforts on getting signed to a label! Ten years ago you probably would, but the landscape has changed. The outlets that were controlled by labels have opened up somewhat and access for everyone is increasing each day.

What remains to be seen is whether an artist can use these tools to become huge. It is definitely true that at some point you need a team of people to help you, but when you do need help be smart about it. A number of services have started that allow fans to help the artists they love. Involve your fans in the process. The change is coming, and all it takes is one mega success to come out of one of these services and others will flock.

More on the services available to you in pt. 2

Lil’ Wayne Fathead: Out-of-the-box Merch Idea

Here’s an example of an out-of-the-box merchandise idea that is sure to make Lil’ Wayne at least a few thousand dollars. Not all of us have enough die-hard fans to make money off of a fathead of ourselves, but there is a lesson here that we can all take away: LISTEN TO YOUR FANS! If someone tells you they like a logo of yours, put it on a shirt. Keep your ear to the streets by engaging fans as much as possible.
Posted on Digital Music News today:
Merch Will Never Be the Same: Introducing the Lil Wayne Fathead…
Thursday, November 04, 2010

(#musicindustry, #rap) Who says athletes get the most visible and outlandish merch?  Maybe artists deserve more t-shirts and caps, and who other than Lil Wayne to lead them to the promise land (from prison)?

Actually, several artists already have Fatheads, and fans can even grab wildly-oversized album covers.  But according to details shared with Digital Music News this morning, Weezy now has an oversized Fathead to his name, thanks to popular fan demand. “We just kept getting bombarded by Weezy fans demanding that we release his Fathead immediately, so we caved and his Fathead is officially free,” a Fathead spokesperson relayed from Riker’s Island.

Those wanting a ridiculously large Lil Wayne can simply go to fathead.com, and enter code ‘LILFREE’ to get free shipping (the rest will cost you).

Review of Headliner.fm

In line with my previous post about Headliner.fm I signed up for the service the other night. It’s a pretty interesting idea for promoting your music and discovering other artists in your genre that are also trying to spread their music. Headliner.fm is an artist community where artists can earn “band bucks” by sharing the music of other artists with their fans. You can earn 1 band buck for each fan that you expose someone else’s music to. These band bucks can be used to buy promotions on other artists’ social media pages.

When you sign up you start out with 10,000 band bucks (theoretically enough to expose you to 10,000 fans of other artists). The first thing I did on the site was to schedule a promotion. Headliner.fm found 10 other artists involved with Hip Hop and scheduled a promotion for Saturday, Nov 6 (a time that these other artists agreed to allow posts on their sites). Within hours after I signed up I had 6 requests from other artists to share their music on my social media sites. It definitely makes you want to listen to these artists music so you can tell if you want to share their music with your fans.

So, overall, nice idea. We’ll see if it works…

Promotional Campaign for The Classical Movement Mixtape

This is a promotional campaign idea that I have been developing over the last few weeks and it’s almost time to start making some of the material for it. I will be putting out a mixtape in about a month and a full album sometime after that. I have finished 3 songs for the mixtape, which will have 11 songs. As I release some of this material it would look very professional to organize everything around a cohesive theme, a movement if you will.

The idea in a nutshell:

Now that my rap name is Trevor the Trash Man I was thinking that I should run for Trash Man of Brooklyn in a fake political campaign. All the material could be designed around voting for me for Trash Man, what my stances are (mostly nonsensical stuff like eliminating wackness, scraping scoundrels and other way better stuff I haven’t thought of yet, ha) and I could even be running against a fake opponent and have a debate against him in the form of a rap battle or something.

These are all loose ideas that will be solidified but the point is that I now have a campaign theme that is highly adaptable, that can include photos and videos and banners and that can build awareness and organize people around a movement. Flexibility and appeal are two important features of any effective promotional campaign.

Making Moves Week 2

This was a busy, busy week. Getting profiles up and running, getting fans to come to your sites and engaging them can be like a full time job. Since I don’t have a job at the moment and I’m able to devote my full time to building a fan base it has been a full time job. So much so that I wasn’t able to make any actual music. I need to work on finding a better balance between making music and promoting it. But since I am still in the first weeks of promoting I’m not too worried that it took up so much time.

Here are the most important moves I made this week:

Myspace

  • Despite what I said before about Myspace (basically that I didn’t think it was worth my time to put too much effort into my profile) I kind of like the new and improved Myspace features and I can’t ignore the traffic that I’ve been getting.
  • Instead of streaming my music using the feature that Myspace provides I embedded a music player from ReverbNation into my profile. That way I can keep track of my plays all in one place, let those plays contribute to my ReverbNation chart position, and use the free marketing tools that ReverbNation offers.
  • I added a button at the top of my myspace page that links directly to my iTunes single “Started Living Tonight.” Once you have a song or album on iTunes just go to this site and enter the info and they provide the html code to embed a button wherever you want.

ReverbNation

  • ReverbNation has become my base of operations. Through ReverbNation I can automatically update Myspace, Facebook and Twitter when I update my status, or add new songs or videos.
  • I Uploaded 6 songs (5 available for stream and download, and Started Living Tonight only available for streaming) to my music player which automatically updates to the players I have embedded on my Myspace and Facebook page.
  • I created a custom link to buy Started Living Tonight on iTunes with a picture of my album art at the top of my ReverbNation page.

YouTube Channel

  • Uploaded 2 videos from a few years ago that I hadn’t previously released.

Facebook Artist Page

  • Suggested my artist page to all of my 778 friends I have made over high school and college.
  • Shared a link to my profile on a few close friends and fellow artists to ask them to spread it to their friends.
  • Added a ReverbNation Band Profile as a tab on my artist page. It’s a quick look at all of my music, pictures, and videos and it is automatically updated when I change anything on ReverbNation.

 

Online Distribution (Tunecore, ReverbNation, and CD Baby)

Here’s how to get your music on iTunes and a number of other outlets where people can buy your music:

You have a few choices for distributors, each with their own benefits.  Tunecore is the one I went with for a few reasons. I wanted my music to be added quickly because I have been promoting the song and the timing is right right now. Tunecore guarantees that your song will be on iTunes within 72 hours. In my case, it took only a few! The other service I looked at, ReverbNation distribution, could have taken between 4-6 weeks. Way too long to wait. Another reason I went with Tunecore is because there is a deal through Myspace Music right now that gets you 50% off on Tunecore’s distribution services for your first year. Instead of paying $50 to distribute an album, and $10 to distribute a single, it’s only $25 and $5, respectively. To get the deal go to Myspace Artist HQ and click on the link for that Tunecore promotion. Tunecore allows you to select from a number of different outlets to place your music. They offer iTunes (US, CAN, JAP, EU, AUS and MEX), Amazon MP3 store (where you have some control over your price), Napster (the newer legal version), Medianet (powers music and media delivery for brands like iLike, Zune, HMV, Tesco, MOG, Ultimate Guitar and more), Spotify, Myspace Music, Rhapsody, eMusic, and a few others. I signed up to be placed on all those services for one flat rate of $5 for the single. Not bad, eh? The delivery to iTunes is guaranteed within 72 hours, and delivery to the rest of the services is guaranteed within 2-3 weeks.

ReverbNation just recently launched it’s own distribution service. They place your music in most of the same outlets as Tunecore, but the pricing is different and the delivery is slower. Instead of a one time fee, like Tunecore charges, they offer a yearlong service called the essentials package for $34.95/year. It includes all the above mentioned outlets as well as some lesser known ones like La Curacao, Intertech Media, and Moozone. ReverbNation also offers a pro package for $58.95/year that includes Pandora, Wal-Mart, Amie Street, We 7, Myxer, Puretracks, Think Indie, Shockhound and Nokia. They guarantee delivery within 4-6 weeks.

Another prominent independent distribution service is CD Baby. CD Baby is the world’s leading online distributor of independent music. It operates like a record store that only sells music that is sent directly to them by artists. They listen to every single album before it is posted for sale so that they can help find other new artists for you to hear as well. In addition to selling your digital music in the CD Baby store, and stores like iTunes, CD Baby can also distribute physical CDs or vinyl, assist you with making those physical copies, and hold the excess inventory in their warehouse. The cost per album is $35/album and $9/single. They deliver your music within 48 hours.

I’m on iTunes!

I opened my iTunes yesterday morning to find that my newest single Started Living Tonight is available in the store. Not only is it available in the US iTunes store, but also in 5 other countries! It’s amazing to see your own music in so many outlets. I definitely feel some sort of validation and get a confidence boost. I imagine the feeling is probably similar to when an artist first hears their music on the radio or something. The first thing I did is purchase the song (to make sure that it works, of course). It only costs me $.30 because through Tunecore I make 70 cents when my song is purchased.

Here it is: Started Living Tonight - Single - Trevor the Trash Man

A Practical Approach to an Old Marketing Model

I found this blog post on Hypebot. It is a guest post by Seamus Anthony, a Melbourne-based musician. I see many similarities between what he is doing and what I’m trying to do. His approach sounds very simple, but at the same time, I don’t see all that many artists doing it. I see a striking resemblance to Kanye’s marketing campaign for his upcoming album “My Beautiful Dark Twisted Fantasy.”

I haven’t seen the numbers from that campaign but I’m sure it was quite successful. For a long time his site was very basic with access to free downloads if you provided your email. Each Friday was dubbed “G.O.O.D. Friday” and Kanye would release another huge track, collaborating with artists like Jay-Z, Nicki Minaj, Swizz Beats, Pusha T, Mos Def, Lupe Fiasco, Lloyd Banks and RZA. He released an artsy, experimental, somewhat controversial 45 minute video called “Runaway” and got an hour-long slot on MTV. Now when I return to Kanye’s site, there is a link to pre-order the album on iTunes, and when it releases on Nov 22 it will have a link to buy the album.

Very few people have access to the resources that Kanye does. Seamus Anthony is one of the people that don’t and he has provided a simple model that even the most resource challenged artists can follow. Release free mixtape songs in exchange for email addresses to promote your album. Distribute video content and other promotional content to the best of your abilities. Then hit ’em with the paid content and make it worth the price.

Seamus’ article in full is below.

image from www.onlinespecialists.com.auWhile music is my first love, I actually currently make more money as a website geek and, to a lesser extent, a writer. So I know how Internet marketing “squeeze pages” work, and how to write and build them.

Meanwhile, I have been going on my merry way making music but not exactly setting the Interwebs on fire.

Then, recently, I was casually watching a music marketing video (by Greg Rollett) and was immediately very familiar with the marketing model he was describing – and that’s when I had my giant D’OH! moment.

Basically Greg was advising musicians to use the very same squeeze page techniques that I get paid to implement for others.

It’s so obvious but I just never thought for one minute to try and use these techniques to sell and give away more of my music.

So I decided to roll out some classic Internet marketing techniques to see if it increased the consumption of my music. 

The Classic Internet Marketing Model

Here’s how your typical online marketing system works:

  • Drive leads (otherwise known as people) to your squeeze page.
  • Use effective sales copy to get their name and email address in exchange for a freebie
  • Send the freebie to their inbox
  • After that the barrage of emails begins. The clever marketers will start by offering you some further free value, before starting to slip in the hard sell.
  • Once a prospect buys something cheap, you then target them to buy increasingly expensive products.

For the purposes of this experiment, I am simplifying this model. In my case the strategy is as such:

  1. Send people to the squeeze page
  2. Get them to opt-in to get their free music download
  3. Send them a little bit more free stuff, like Youtube links, more free music downloads, maybe a short e-book or something.
  4. Then hit them to buy a CD or download of something totally new
  5. Send them some more free stuff
  6. Ask for a second purchase, can be of something old, seeing as *cough* this abounds.

Might not sound all that groundbreaking but contained within that little plan is a LOT of work.

For example: the squeeze page…

Firstly, I had a look at my existing website and knew straight away that I needed to build a new one. Why? Because squeeze pages by design have one single focus – getting visitors to fill in the opt-in form.

Next I needed a third party digital goods transaction and delivery provider that would enable me to allow some free downloads as well as easily hook into my mailing list management program. I eventually settled on DPD (http://getdpd.com) who provide you with the ability to sell or give away up to 10 digital products for a monthly payment of US$5 and have great integration with various mailing list management providers.

And so the page is up and working:www.SeamusMusic.com [pictured right]

Here’s a list of things I plan to do next:

  • Improve the look of the page
  • Improve the copy (words)
  • Add a video to the page for those who don’t like to read
  • Construct a sequence of auto-responder emails offering both paid and free content (music)
  • Get as many links to the page as possible (social media, article marketing, online advertising)
  • Send people who dig my live shows to the site
  • Website optimization via A/B split testing

And that’s just the start; there is so much you can do – website optimization via A/B split testing anyone?

One thing I did already was stick the button up the top of a very stripped –down version of my MySpace page – www.myspace.com/seamusanthony – it will be interesting to see if that converts.

Fishing for Fans in the Great Sea of Content

Classic Internet marketing is not usually the kind of thing that musicians tend to consider appropriate for promoting their art. Yet to me, giving it a go makes perfect sense because getting more Facebook “likes” or YouTube views is one thing, and an important thing, but it’s not a sale.

Look at it this way: Once you send someone to look at your YouTube video – then what?

Mostly, after looking at your video for a bit, people just drift back off into an endless sea of content. Sometimes they spread the word for you, but then what? Not much, that’s what.

The thing that is inherently flawed about the way musicians in general (myself included) approach the whole music business palaver is that they only really expect to ever start making money once they are getting hundreds of thousands, if not millions of YouTube views and Facebook “likes”.

If your average small businessman had to get the attention of millions of people just to start making some $1 sales, forget it! They wouldn’t bother. Most small businesses survive due to their ability to make a decent wad of cash out of a manageable amount of customers.

For most musicians, the music-dollar is stuck under a big, heavy, inverted pyramid. How are they going to get the cash unstuck and into their pocket?? Possibly by putting some tried and tested Internet marketing techniques to work for them. The jury is out but I can report that I have had some encouraging results already. I’ll let you know how I go in a few months.