3 Executive Summary Grooveshark is a free online music service whose primary ambition is to change theway we find and listen to music. The service allows users to pick and choose songs that theycan add to their library or use a radio function that picks songs similar to their preferences.Our motivation behind creating this campaign is the fact that Grooveshark has zero advertis-ing. By creating a strategic advertising campaign, we believe Grooveshark could grasp controlof the online music market and significantly amplify revenue. Although Grooveshark attainsmost of their revenue through advertising on their site, this campaign focuses on increasingVIP subscriptions because this service has the most potential for expansion.
4 Situational Analysis Grooveshark VIP is an online music service that allows users to stream any number ofsongs in its library to their mobile device or computer as long as they are connected to the In-ternet. The company lists three objectives on its web site: To improve the connection betweenpeople and music. To change the music industry in ways they seem so unwilling to consider.To have fun. Pandora Radio is currently the industry leader in “Internet radio,” but that term hasyet to be truly defined. The Grooveshark service, while technically an Internet radio service,allows the user much more freedom and depth. A user cannot only select the music they wantto listen too; they can view their friend’s tastes or have music chosen for them based on simi-lar songs they like. Beyond its role as a music service, Grooveshark offers some social mediaaspects such as user profiles. We hope to connect the dots between bands, record labels, andfans to create an all-inclusive music service platform on the web. What defines Groovesharkas a truly unique service is that it allows users to access music across multiple platforms re-gardless of what device they choose to listen from or where they are. With every song instant-ly accessible on-demand, users no longer need to download music to have complete portabilityand control. Our VIP subscription service allows users to download Grooveshark as an applicationon both their computer and mobile phones, removing advertisements and allowing access toour library without going to our web site - and the mobile phone application allows streamingfrom anywhere you have signal. This appears to be an excellent opportunity for growth, thenext step in the evolution of music; a library consisting of every song, ever, with you where everyou go. However, Grooveshark’s most persistent and increasing source of revenue is advertise-ment. A campaign would not only increase the subscription sales to our VIP service, it would
5generate Internet traffic and increase our free users as well. Additionally, vast amounts ofdata are collected on individual consumers, which are valuable to advertisers targeting specificdemographics, as well as artists or record labels seeking intelligent promotion. Currently, Grooveshark caters to young adults between the ages of 18 and 26. Theycome from a variety of backgrounds with several different tastes in music. Although Groove-shark offers numerous songs from several different genres, our competition uses the same ap-proach to variety. They include sites like Pandora radio, created in 2001, which uses a programcalled The Music Genome Project to tune into their customer’s wants. There are also serviceslike Rhapsody, which offers unlimited music for a flat monthly fee. While Grooveshark is rela-tively new to music radio compared to our competition, we strive to be the one stop music shopplatform to differentiate ourselves.
Problems and Opportunities 6 European royalty rates are much higher, and so growth overseas is questionable. Inter-net radio is a relatively new product and market and so it is somewhat unstable. For example,Pandora, one of our competitors, was on the brink of collapse in 2008. The ‘new’ status ofInternet radio will likely benefit us, as many people will be open to alternatives since Pandorais likely the only service they are aware of. By providing a better product we can hope to lureaway and retain many of Pandora’s customers. Additionally, as Internet phone capabilitiesand those with access to them continue to grow, our potential customer base will continue togrow as well.
7 Goals First, we looked at how Grooveshark makes money. Through ad sales, band campaigns,and VIP memberships, ad sales bring in the most revenue. After comparing band campaignsversus VIP memberships, we decided that we did not want to limit ourselves, or our targetaudience, as we would in attempt to sell band campaigns. As a result, we decided to create acampaign advertising Grooveshark’s VIP memberships. Despite Grooveshark’s lack of advertising, the company traffics 22 million users permonth worldwide. After speaking with one of Grooveshark’s Business Developers, Ben Kilmer,we have learned that Grooveshark grows organically at 20% per month worldwide. Therefore,an awareness campaign would not be necessary. We will still be able to increase awarenessthrough our campaign, but it would be more beneficial for the company to focus on filling thegaps. Out of the 22 million that traffic Grooveshark within a month worldwide, 8 millionare registered users, simply meaning they have created a free account on the site. Our targetmarket includes these preexisting users, ranging in a broad spectrum of age. We believe that bytargeting music enthusiasts, between the ages of 18 to 26, we have a greater chance of makingan effective impression through the promotion of the VIP’s membership benefits. After completing our environmental scan, we found that people go to different musicsites for different reasons. People use Pandora for the radio, Myspace for social networking,and Rhapsody for its transportability. Through Grooveshark’s VIP membership, all three ofthese components are offered without advertisements. Here was our hook. Our goal is to getpeople to buy into the company through the belief that Grooveshark is the best online musicservice for all their needs.
8 ObjectivesComprehension: To establish comprehension of Grooveshark’s services among 60% of ourtarget audience within 6 months of our campaign’s debut.Desire: To have 60% of the comprehending publics express a desire to buy into our VIP ser-vice within 10 months of the campaign’s debut.Action: To increase VIP membership by our constituent group of 18-26 year olds by 45%within the first year of the campaign’s debut.
9 Markets/ Segments/ Publics This campaign hopes to target males and females between the ages of 18 to 26. Thesepeople are a part of generation Y and are very familiar with different media and technology.Because Grooveshark is primarily located in the United States, the campaign will focus on justAmericans. This age range includes people in college and young professionals just starting outin their career. They can be considered early majority but some can be considered early adap-tors. They are already extremely familiar with the web and the Internet. People in our targetlisten to a variety of music genres. Many can be considered to be a “music junkie.”
Creative Brief 10 Young adults between ages 18 to 26 who are beginning college, in college, leaving col-lege, and beginning their first real jobs. These individuals come from a variety of backgroundsand vary among their interests. These individuals heavily rely upon the Internet for everythingfrom the news to basic social interactions. They are typically among early adopters when newtechnology comes out. Almost all of them own some sort of mp3 player and half of them ownsmart phones. They read a variety of magazines including Rolling Stone, People, and SportsIllustrated. Past times include mostly sports, like skating or surfing and basketball or football.Their music tastes include mostly alternative rock, pop, or rap, but there are some who enjoycountry as well. Most of this group spends a lot of money going to concerts for their favoritebands. Most clothes shopping takes place in malls in stores like American Eagle, Hollister, Ab-ercrombie and Fitch, and Express. They mainly live on or near college campuses, apartments,or with their parents. Then, there is a smaller segment of our target audience that is more heavily into musicand consider themselves enthusiasts. They mainly include people who work in the industry orare learning about the industry in school. This group usually focuses on music and bands onindependent labels, or “indies.” They spend more money on music and concerts. They shop inmore alternative stores such as PacSun, H&M, Urban Outfitters, and even thrift stores. Theyread more information about music such as in additional music magazines like AlternativePress and Revolver and participate more in music blogs online. More of them also own AppleMacbooks over a Windows variety of computer.
Strategies 11 After determining our goals and objectives for the campaign, we had to think creativelyas to how we would get our users to make the transition to our VIP subscription. The size ofour user base is intimidating, and mostly, challenging to cater to, therefore we attempted tonarrow our audience down further. After much consideration, we understood that Groove-shark’s services are used by a variety of people, none of which we can rank as most important.It was in Grooveshark’s best interest that we capitalize on the diverse consumer base of musicenthusiasts by reaching out to the niche markets within the greater mass market. When creating our strategy, we kept in mind the company goals of Grooveshark: toimprove the connection between people and music, to change the music industry in ways themseem so unwilling to consider, and to have fun. It was also very important to breakdown theirmotto: “Happiness, Discovery, Freedom.” By aligning the company’s goals with the cam-paign’s objectives, we were able to generate our concept by taking advantage of our nichemarkets. We wanted to target 18-26 year olds because these people are either entering college,in college, leaving college, or starting their first jobs. The common denominator is the desirefor freedom. With our campaign, we are looking to tap into these desires of our constituents.With our motto, “freedom to groove,” and by introducing our users of various personalitiesin our ads, we are able to relate our ideas to anyone who craves freedom. By introducing ourvarious users in these ads, we are able to create a correlation between the freedom he or she isexperiencing (in the ad) to the perks offered in our VIP service. Our ads are realistic, comedic,and true to the benefits of Grooveshark’s VIP subscription.
Media Tactics 12Print Advertising We will purchase advertising space in People Magazine, Sports Illustrated Magazine,and Rolling Stone Magazine. These three magazines were chosen because they offer a varietyof readers. People Magazine readers are primarily females (88% as of 2010), while SportsIllustrated readership are primarily males (77% in 2010). Rolling Stone was chosen becausetheir demographics are split between males and females (2010 statistics state 56% readersare males and 44% are females). Advertisements in each magazine will be different but willhave the same overall theme. People, Sports Illustrated and Rolling Stone will run 6 adver-tisements during the campaign. Magazines were selected because they allow advertisementsto be printed in high quality that will effectively showcase our company and service in a fullcolor, glossy format. Magazines are also very effective because they have a long shelf life.They often sit around in doctors’ offices and business waiting rooms. Another benefit of maga-zines is that the demographics are clearly defined each year. This campaign will also include posters to put around college campuses. These post-ers will be approximately 24 inches tall and 16 inches wide. We will distribute them to the topfifty party schools in the United States. Illegal downloading and music sharing is much higheron college campuses than outside of college. We wish to advertise that parties can still be funwithout playing illegal music. We plan on advertising our VIP service where people can havea larger song library in an organized way for only a small fee each month. Each year Princ-eton Review has their top party schools and we plan to use those lists to find the best schoolsto advertise too. Some of the schools listed in 2010 are Penn State University, University ofFlorida, University of Mississippi, University of Georgia, Ohio University, West Virginia Univer-sity, University of Texas, University of Wisconsin, Florida State University, and University ofCalifornia – Santa Barbara.
13Internet Advertising Banner advertisements will be placed on our own web site to further advertise the VIPservice to the already registered listeners. They will be simple and have the Grooveshark VIPlogo. This is a low cost way to advertise on the Internet. One of our goals is to gain subscrip-tions of the VIP service from our already regular registered listeners and this can help do it.We also plan to place banner advertisements on Ticketmaster.com and Ticketfly.com. Ticket-master.com and Ticketfly.com are sites were both males and females of any age will visit tofind good deals on concert tickets. This site appeals to music junkies trying to find tickets totheir favorite concert of any genre. This site will also reach male and female viewers. Anotherweb site we will be advertising on is facebook.com. This site will be beneficial in our advertis-ing campaign because it has a very wide variety of users.Radio Advertising This campaign will include advertisements on the radio. Our advertisements will runduring Kiss FM Radio’s show and America’s Top 40 with Ryan Seacrest. This show is an inter-nationally syndicated program. It appeals to both males and females. America’s Top 40 playsthe most popular songs in the United States starting at number 40 and ending at number 1.Kiss FM’s demographics are both males and females ranging from the ages of 13 to 34 - wellwithin our target market.
14Promotional Music Tour Along with our traditional advertising, we are going to host a month-long bus tour inMarch 2011 that will travel across the state of Florida promoting Grooveshark and increas-ing VIP subscriptions. Much of our target market, 18-26 year old adults, travel to Florida forspring break in March and we believe engaging with these people in a fun, interactive, real-world environment will significantly help accomplish our objectives. The Freedom To Groove Tour will stop at prime spring break destinations in Floridawhere a DJ will host each event, playing a variety of music and taking song requests. At eachevent, the DJ will host prize giveaways and music trivia that contestants can enter to try andwin free Grooveshark T-shirts, sunglasses, and VIP subscriptions. An enthusiastic and char-ismatic DJ will be the face of the tour and he will encourage conversation with the targetmarket by utilizing Twitter and YouTube to keep spring breakers up to date and engaged. OurYouTube channel will ask people to send in videos throughout the tour to show footage of ourevents or how they used Grooveshark to have fun on their spring break. The bus crew will consist of about 10 people including the DJ, equipment technicians, atour manager, and promoters. The tour will begin near Grooveshark headquarters at the Uni-versity of Florida in Gainesville where we will hold an event on campus. From there the crewwill travel to Tampa, Miami, and Ft. Lauderdale. In Miami, Ft. Lauderdale, Daytona Beach,and Panama City, the crew will promote on the beach in a large tent by day and then move toa club or bar at night. This tour is constructed to consistently reflect Grooveshark’s company goals of improv-ing the connection between people and music; changing the music industry in ways they seemso unwilling to consider, and to have fun. The Freedom To Groove Tour is a pilot program anddepending on its success, we may plan a nationwide tour.
Budget 15 Because Grooveshark is only a few years old, it has yet to have an advertising cam-paign. Therefore, for its first one, we felt it was not necessary to create a large national cam-paign. This is why our plans include trial programs and small-scale tactics as a part of a pilotprogram. If successful, we fully expect to expand our reach to a broader spectrum of thenation. Our campaign plans on utilizing $10 million dollars out of which we have broken downinto four segments: Print, Radio, and Internet Advertising followed by our new Freedom toGroove Tour. Here is how we have segmented our resources:Print Advertising Radio Advertising: 15%Magazines: 40% · Development· Development · Actor/Voice· Placement in People Magazine, Sports · PlacementIllustrated, and Rolling StonePosters: 5% Promotional Music Tour: 30%· Development · Bus Rental· Labor · Gas· Postage · Night Club Association · Salary for people on busInternet Advertising · FoodBanners: 5% · Grooveshark Gear (sunglasses, T-shirts)· Development · VIP Service Giveaways· Placement · Equipment
Evaluation 16 Since this is the first time Grooveshark has launched an advertising campaign, it iscritical that we measure the success of the campaign through an evaluation. To do this, wemust return to our objectives.1. To establish comprehension of Grooveshark’s services among 60% of our target audi-ence within 6 months of our campaign’s debut. In order to measure comprehension of Grooveshark and its VIP service, we plan totrack the number of clicks our online ads receive as well as the amount of traffic our site, blog,and social media accounts receive. We plan to add a new question to the registration processasking, “How did you hear about us?” We will gather this information and determine whichmedium was most effective. During this six month trial, we will record the amount of followerswe gain on Twitter and the amount of subscribers on YouTube. We also monitor conversationsand engage in them as well.2. To have 60% of the comprehending publics express a desire to buy into our VIP ser-vice within 10 months of the campaign’s debut. We plan to measure the growth of desire simply by the amount of requests we receivevia the Internet, phone, mail, in person and e-mail. After implementing our promotional Free-dom to Groove tour, we hope to expand further up the east coast with hopes of one day reach-ing the west coast. In our tour, we will make it a priority to inform college students that weCAN host a party at their school. By planting this idea in the minds of college students, weplan to receive invitations and requests to do it again.
173. To increase VIP membership by our constituent group of 18-26 year olds by 45%within the first year of the campaign’s debut. Just as Grooveshark has tracked the amount of registered users the site gains in amonth, we will track the amount of VIP users they gain in a year. If we are able to meet thepredicted percentage or even exceed it, we will plan to expand and implement the campaignanother year. We will send more posters to more colleges, buy more space in magazines andonline, release radio ads on more stations, extend the length and distance of our promotionaltour and we will even introduce a series of TV commercials.
Summary/ Recap 18 If everything goes according to plan, we believe this ad campaign will give Groovesharkdominance over the online music service industry. Grooveshark is a platform and this valuableattribute gives the company flexibility to adapt to market changes and evolve into a superiorservice. Since this could be the first ad campaign ever launched by Grooveshark, the level ofsuccess will be critical in determining Grooveshark’s next step. We firmly believe that the stra-tegic alignment between this ad campaign and the company’s objectives will create a brightfuture for Grooveshark.
Appendix E 23Radio Advertising TranscriptIt’s always frustrating when advertisements get in the way of your music, or you can’t findsomething you like. With Grooveshark VIP we give you the freedom to choose you’re own mu-sic and based on what you like, we offer suggestions and cater to your personal music tastes.You can also connect with you’re friends and favorite artists to see what music is playing intheir lives. Catch your groove at grooveshark.com