Bruce Haring, in his article “Datamining: Spam or Future of Music Business” appearing in Inside.com states that “Bands are beginning to embrace the data-collection method…” and then poses the question, “…will some fans be put off by the tactic?” Disappointingly, he fails to answer the question of fan response to datamining (DM) in the article and instead gives many examples of why it is a huge element of the future of the music industry marketing, and at present is grossly underutilized.
Hootie & the Blowfish is a band that effectively uses DM. They recognized early on the value of building a database of their fan’s shopping preferences. Fan data had formerly been used to sell the band’s merchandise and promote the band’s upcoming events, is now shared with promotional partners, like Budweiser, enabling them to cross sell their products with those of the band. Now the broader consumer habits of the fans can be targeted, and the band can collect some extra money.
“Does it makes sense?” Haring asks…Apparently yes, because it generates profit, big profit. Sting netted some 30 million in promotion from a deal with Jaguar.
Existing databases are underutilized because only now is the marketing potential of them realized, and the tools to ‘mine’ the existing databases is scarce. Thankfully, firms are emerging that can analyze and organize the data into marketing friendly reports or sell the software to do it.
Fans will know the fruits of DM by emails notifying things for sale, more focused marketing campaigns and greater access to artists based on demand.
No fans were interviewed in the writing of the article.