Tag Archive: marketing


TEN BRANDS TO WATCH IN 2013

TEN BRANDS TO WATCH IN 2013

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Marketers spent close to $1.2 billion on music sponsorship alone in 2012, and that’s not even counting the hundreds of millions that went into commercials featuring current songs that helped many artists impact the Billboard charts. As artists, labels, publishers and tour promoters alike continue to turn to the advertising community to help make up for budget and marketing gaps, here’s a look at 10 brands that will be among the first on everyone’s speed dial over the next 12 months.

Check Out All Our Year-End Coverage and Charts Here

Pepsi

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As Frank Cooper, Pepsi’s chief marketing officer of global beverages, told Billboard.biz earlier this week, the soda giant is prepping a multi-year creative partnership with Beyonce worth $50 million that will be at the center of an even bigger music strategy for 2013. Among the brand’s plans are building a label-like service similar to Mountain Dew’s Green Label Sound and amplified music efforts around its sponsorship of the Grammys, NFL and “The X Factor.”

 
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Having spent the bulk of 2012’s music strategy on its sponsorships of “American Idol” and the Olympics, Coke is turning to its recent $10 million investment in Spotify to guide its strategy for 2013. At the top of that list: a new series of location-based music apps, tentatively titled “PlaceLists,” that the brand already commissioned a network of New York hackers to develop last spring.

Cover Girl

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The cosmetics brand finished the year with a trio of major music endorsements, adding Pink, Janelle Monae and EDM sister duo Nervo to a roster that also includes Queen Latifah and Taylor Swift. Look for big TV looks for Monae and Nervo at the top of the year, and a possible tour extension for Pink when her Truth About Love tour takes off this spring.

Macy’s

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The country’s largest department store marketer is also looking to become its most powerful when it comes to artist relationships. Not only are Mariah Carey, Taylor Swift and Diddy among its many celebrity merchandise partners (and stars of its TV ads), but a new focus on emerging artists helped anoint twin-sister duo Megan & Liz the winners of the IHeartRadio Rising Star competition, sponsored by Macy’s. Look for Macy’s to do something similar in a new strategic partnership with Myspace, which will relaunch in mid-January.

Mondelez

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The year’s most confusing rebrand aside, the new name of Kraft-Nabisco’s packaged food unit represents strong buying power and some big brands, ranging form Oreo to Planters to Trident to Oscar Meyer. At the top of the company’s list for 2013? A sponsorship of One Direction’s 2013 World Tour.

Intel

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Having kicked off 2012 with new creative director Will.i.am, look for Intel to look for new and innovative ways to showcase its technology through music, from its ongoing global events series with Vice, The Creators Project, to a new jogging app with singer Imogen Heap where music reacts to the pace of your run in real-time.

Samsung

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After spending some $600 million marketing its Galaxy products in 2012, Samsung will continue to seek artist and media partnerships using music to amplify its “Next Big Thing” platform and Samsung Music Hub in 2013.

Chevrolet

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Perennially one of the most active brands in music across any category, Chevrolet set the bar high for music in the Super Bowl last year when a spot starring rockers Ok Go doubled as a launchpad for fun.’s “We Are Young.” Look for the automaker to try and top itself during the big game in 2013 as well as continue a sponsorship strategy that has included stops at South by Southwest and our own Billboard Music Awards.

Converse

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With its Rubber Tracks studio in Williamsburg, Brooklyn, hosting over 400 artists in its 18-month lifespan thus far, Converse has quickly established itself as one of music’s most sustainable brands. This summer, CMO Geoff Cottrill helped artists like Nas, Santigold, Blur, Paul Weller, Spiritualized and Plan B play intimate gigs in London when other venues couldn’t take them due to the Olympics. With Rubber Tracks scheduled to do pop-up studios around the country in 2013 as well as continue as presenting sponsor of the Fader Fort at SXSW and CMJ in 2013, expect Converse to be everywhere emerging artists go for the next 12 months.

Budweiser

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The brand’s inaugural Made In America festival, headlined and curated by Jay-Z, was a success — the two-day event grossed $5 million in ticket sales with over 78,000 in attendance, according to Billboard BoxScore. Look for a second year to follow around the same Labor Day timeline as 2012’s event, plus an extension of Bud Light’s renewed deal with Pitbull and a deeper dive into digital music sponsorships.
— made by andrew hampp for billboard.biz

 

Beyonce lands $61m deal with Pepsi

Beyonce lands $61m deal with Pepsi

This article was first published in The Straits Times on Dec 12, 2012.1.jpg

Partnerships of singers with big corporations go beyond music. Beyonce’s husband, rapper and record producer Jay-Z, had a deal with Microsoft to promote his memoir. — PHOTO: ASSOCIATED PRESS

New York – For its campaign with Beyonce next year, Pepsi does not just want to sign up the telegenic pop star for another TV commercial. It also wants to get into the Beyonce business.

In an expansion of the recent marketing experiments that have brought PepsiCo ever closer to the music industry, the company has embarked on a hybrid project with the pop star that will include standard advertising such as commercials as well as a multi-million-dollar fund to support the singer’s chosen creative projects.

“Pepsi embraces creativity and understands that artists evolve,” Beyonce said in a statement. “As a businesswoman, this allows me to work with a lifestyle brand with no compromise and without sacrificing my creativity.”

The campaign will coincide with a blitz of promotion for her next album, which has no title or release date so far but is expected next year.

Sometime after she performs at the Super Bowl half-time show on Feb 3 (also sponsored by Pepsi), she will appear in a new TV ad – her fifth for the soft drink since 2002 – and her face will be on a limited- edition line of soda cans.

The less conventional aspects of the deal are meant as collaborative projects that indulge Beyonce’s creative whims and might well have no explicit connection to Pepsi products.

They are still at the brainstorm stage, but projects could include live events, videos, “a cool photo shoot” or almost anything else, said Ms Lee Anne Callahan-Longo, general manager of Parkwood Entertainment, Beyonce’s company.

For Pepsi, the goal is to enhance its reputation with consumers by acting as something of an artistic patron instead of simply paying for celebrity endorsements.

“Consumers are seeking a much greater authenticity in marketing from the brands they love,” said Mr Brad Jakeman, president of PepsiCo’s global beverage group. “It has caused a shift in the way we think about deals with artists, from a transactional deal to a mutually beneficial collaboration.”

The multi-year campaign is estimated at US$50 million (S$61 million), the bulk of it for media placements and promotions around the world, and the remainder split roughly equally between Beyonce’s fee and what Pepsi calls a creative content development fund.

According to the tracking firm Kantar Media, PepsiCo and its archrival Coca-Cola Co each spent about US$148 million in the United States to advertise their soft drink brands in the first six months of this year, across all measured forms of media, such as television, print, digital and radio.

Over the last decade, many consumer brands have been taking more active roles with artists, particularly in pop music. Converse, Red Bull and Toyota’s Scion line, for example, have become as familiar in the music business as any record label or concert promoter by paying to help create and promulgate music.

Bands always risk fan disapproval when shaking hands with big corporations. But with record company budgets diminished, Madison Avenue money is often seen as essential. PepsiCo has been part of this trend through Green Label Sound, a label financed through its Mountain Dew drink, which over the last four years has paid to release free music by under- the-radar groups such as Matt & Kim and the Cool Kids.

“We recognise that there have been massive disruptions in music industry: lower investment in artist development, fewer points of distribution and financial constraints,” said Mr Frank Cooper, a top marketing executive in PepsiCo’s beverage division who has been a force for such projects. “We look at those disruptions as opportunities for Pepsi.”

These deals are not limited to music.

In 2010, Beyonce’s husband Jay-Z partnered with Microsoft to promote his memoir, Decoded. According to a case study led by Anita Elberse, a professor at the Harvard Business School, the publisher could contribute only US$50,000 for marketing, but Microsoft paid US$2 million for an elaborate scavenger hunt that promoted the book as well as the software giant’s new search engine, Bing.

For Jay-Z, the campaign was a success. But the effect of such deals on corporate partners such as Microsoft is hard to measure, Prof Elberse said. “Even if they see an increase in market share,” she said, “it’s hard to attribute that to this one thing they did with a star at one point in time.”

Mr Cooper, however, was confident that its music projects, such as Tonight Is the Night by the little- known rapper and singer Outasight – which sold 1.1 million copies after a push in 2010, when the song was featured in a commercial and Outasight appeared on the Pepsi-sponsored show The X Factor – bring a return on investment. “We believe all that transfers into brand equity for Pepsi, and, ultimately, sales,” he said.

Pepsi’s deal with Beyonce is an outgrowth of ventures such as Green Label Sound, but on a scale befitting her superstar stature.

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Beyonce has done five commercials since 2002 and the one above in 2004 was one of them. She was a Pepsi ‘gladiator’ spokesman with Britney Spears (left) and Pink (right). — PHOTO: PBB

In addition to the commercial and the soda can, the deal will also involve sponsorship of her world tour next year.

All the standard sponsorship elements will be present on the tour, such as prominent Pepsi logos. That kind of marketing, Jakeman said, is “still important, but insufficient” to reach savvy young consumers. So Pepsi will also play a role in selecting local talent as opening acts at various points around the world. And who knows, a concert stage would seem a perfect spot for some fund-supported video or social-media experiment.

“It’s wise for a brand like Pepsi to give an artist the ability to truly express herself,” said Ms Callahan-Longo of Beyonce’s company, “instead of just the old-school way of, ‘Do you want to be in an advertisement?’ “This is much bigger. This is, ‘How can we create something together that is truly unique?'”

New York Times

 

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