In the internet revolution of the music industry, the fans are recapturing the music long ago lost to the pratfalls of big business.
It is common knowledge that technology has transformed every aspect of the music experience, from pushing record sales ever-lower to bridging the gap between artist and listener. Nowhere is the metamorphosis more evident than within the jam band scene, whose characteristic tight-knit community is thriving with the emerging social media.
Everything from interacting with popular artists to consuming the latest tracks is being redefined. And it’s not only the fans who are changing the way they listen through their Facebook pages, Twitter feeds and favorite sites – young bands are also finding that the way to make it big hinges on their ability to manipulate those very technologies.
As the old way crumbles, the industry, the artist and the fan must adapt or perish.
THE INDUSTRY
“Social media is micro-sizing the music industry,” said Erik Koral, the founder and owner of California-based marketing group FanManager. “It’s bringing everyone so much closer.”
While artists and industry professionals alike cannot be sure of how the future of the industry will change with developing social media, those uncertainties have not come close to stunting the popularity of the technology takeover.
“The number of possibilities are endless,” Koral said.
He should know. Over the last five years, FanManager has grown from coordinating small, grass-roots street teams to a full-service marketing company.
“As the internet blossomed, it proved itself as a viable marketing tool,” Koral explained.
“It allowed us to handle all of our clients’ viral marketing campaigns, online and physical street teams, social media management, printing, graphic and web design, promotional contests, meet and greets, running fan clubs, and even a little bit of merchandising.”
The key: on social media sites, users categorize themselves into useful demographics based on media consumption.
“People are finding what they like, and then find other similar artists within that genre because of social media,” Koral said. “The ability to create custom radio stations on a site like Pandora requires absolutely no extra thinking on the fan’s part.”
The Internet’s lucrative marketing potential means social media has become crowded real estate.
“Everyone wants some sort of visibility,” Koral said. “I constantly have promoters wanting to post ads on my artist's websites and social networks.”
In Koral’s opinion, it’s a healthy competition. Online advertising has replaced traditional promotions like print ads and television commercials. It has become outdated for a band to make commercials, and infinitely more important to post music on YouTube or promote concerts and events via social networking.
As record sales continue to fall off the proverbial cliff and the paid download market fails to take up the slack, social music destinations prosper, utilizing the power of the Internet advertising.
"Social music may not generate much revenue now, but monetization’s effectiveness must — and will — improve," Mark Mulligan of Forrester Research wrote in a report on the subject. "In doing so, it will become an increasingly important revenue stream that helps fill the gaping hole left by lost CD sales."
With the evolution of music generating sites such as Pandora and Last.fm, music has never been more accessible – and cost effective – for the fans. The record industry must acknowledge that one-day “free” is the only price fans will be willing to pay for their music.
It is at that time, Mulligan believes, social media sites will generate significant revenue from ads and subscriptions. Still, social networking is a delicate endeavor and there is no clear-cut formula for success.
“It is important to remember that fans can be fickle and will turn on [a band] if they aren't smart with their social networking,” Koral explained. “Bombarding fans with too many messages is a surefire way to lose support”
Successful viral marketing campaigns are centered on fun activities, such as contests, that engage the fans by building a relationship with the artist.
“The more hard core the fan base is, the more you need to challenge them” Koral suggested. “Just take a look at some brilliant campaigns from artists like Nine Inch Nails who created an offline and online scavenger hunt based around the creation of their album.”
In the end, it returns to the idea of connection, as fans expect to be closer to artists than ever before.
