Andy Lykens

Innovating and operating through growth

Why Every Brand Should Follow McDonald’s Golden Example In Music Publishing.

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McDLogo

I used to think music publishers were just big music companies that owned songs. Then I found out McDonald’s is a music publisher and things got interesting…

Everyone knows there’s money to be had with placing music in advertising, but many people may not know exactly why it’s such a boon.

Including the very brands that pay for the music in the first place.

It’s key to realize that the owners of a song get paid every single time a song airs on television or the radio. This is called a performance royalty.

What does this mean for brands?

You may be surprised to find out that many brands are already setup to collect these performance royalties. And not just small players – brands like McDonald’s, Nestlé and Unilever all collect performance royalties when songs air on TV.

But how do they do this?

It’s simple actually – a lot of advertising work is done as work-for-hire. Therefore the brand owns everything that’s created for their commercials, including the music.

A brand can simply sub-contract a “real” music publisher, or even small royalties shop, to setup a publishing entity, collect, track and manage the royalty income on their behalf.

Fees for setup are reasonable, especially compared to the amount of money the brand will earn back from performance royalties (out of which the music publisher will take an administrative cut).

The resulting income for any given spot depends on many variables.

The PRO’s certainly aren’t very open about their tracking formula – much of it is mystery sauce with a pinch of fairy-dust. Despite there being VERY reliable computer tracking services available this seems to be more of a thorn in the side of the PROs than a welcome new tool.

That means it’s tough to tell exactly how much money one spot brings in.

However, they could make enough in performance royalty income to pay themselves back for the expense of the music creation in the first place in many cases.

Is this bad business for the musicians that write the music?

In fact it’s often a better situation for the musicians. If brands don’t register their compositions that are works-for-hire it can be tough for Bill G. Songerton to collect his performance royalties.

But attach a big brand name to a small publisher, and you’ve got an entity that commands respect at the PRO’s (and not to mention one that registers works with all relevant data needed for tracking).

If a brand uses bespoke music for ads that air on TV or radio but isn’t setup to collect performance royalties, they’re missing out on creating a way to offset the cost of music, while also helping out the composers of the song at the same time.

This can all be managed by setting up a simple 3rd party music publisher that can run all of the administration for the brand and literally just cut a check once every quarter.

Let me know what you think about this in the comments – brands, does your agency have you setup to own your works-for-hire? Songwriters – what’s it like to collect performance royalties if your ad-work isn’t registered at a PRO?

Brands Want The Latest Hit, But Are Any Brave Enough Find It?

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Last year the music publisher I worked at got lucky.

We landed the new Daft Punk album.

EVERYONE wanted “Get Lucky.” We had so many requests pouring in for this song, so many brands and agencies went after this thing (or something that sounds like it) you just wouldn’t believe it.

All of them were turned down.

You see here’s the thing that a lot of brands do – they try to piggy back on the next new musical thing. They’ll throw obscene amounts of money at it (or sometimes laughable amounts of money if they don’t have much music licensing experience). But they can’t get it.

By the time the latest hit is a hit, it’s got too much clout. It’s too popular. They can’t afford it.

Why not try to FIND the next new thing?

Every label, every publisher, every indie artist that’s clamoring to get their song somewhere, ANYWHERE, is willing to let you listen.

Why not do the hard, low-risky work of curating the music as a brand project?

Some brands do this (or outsource it at least) – Mt. Dew (Green Label) and Red Bull are two obvious examples – and have seen some pretty cool results.

The problem with transactional music licensing is you often end up not getting what you pay for…what is it you’re paying for anyway?

Like anything, the more real effort you put into something the more positively it will reflect on the brand.

You don’t even have to do it with in-house employees or your agency – you can hire tastemakers to do this on your behalf (ahem, the contact me form on my blog is real easy to fill out by the way).

Let’s not forget to mention the service you’re doing for artists and for music in general. A whole new outlet for music.

What a great thing for everyone.

Taco Bell Probably Threw Away $250,000 – How Brands Waste Marketing Dollars On Music

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Brands using a recognizable piece of music in an ad is no longer big news, cool, or revolutionary to the music industry.

We’ve been hearing for years about how the next hit single could be due to a brand’s inclusion of the song in a TV spot. How such-and-such band really broke based on a commercial they were in.

While some bands have definitely gotten some great success by being in an ad, I’m here to ask a different question – what are the brands getting?
[Read more…] about Taco Bell Probably Threw Away $250,000 – How Brands Waste Marketing Dollars On Music

Everyone Told Me To Start My New Year With A “Bang,” Here’s Why They’re Idiots.

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Start the new year off with a bang!

That’s what everyone tells you to do.

But realizing It’s almost the end of January I have to ask:

Does your new year feel like a “bang”?

Better yet, do you know what a “bang” even feels like?

I ask because we often need to experience something directly in order to understand what it really is.

Does success even feel like a bang at all? Like an explosion that happens all at once?

Do you think that you’ll go to sleep one night and magically wake up the next morning feeling like the volume is turned up and your world is buzzing?

To me, any new endeavor feels ominous; something bigger than myself surrounded by doubt and unanswered questions. It literally feels like a fight just to get myself to start doing something…ANYTHING.

And then it gets a little bit better. Maybe I make a new contact or I learn something and do it just a little better. Then it’s right back to struggling.

But it never feels like a “bang”.

The bang of success comes when the reward for the hard work is already here.

It DOES NOT come during the struggle. It certainly doesn’t show it’s face when the whole world, including your own brain, seem to be trying to slow you down or distract you.

So don’t start the new year expecting a huge “bang.” Expect doubt. Expect distraction. Expect not to be perfect. Expect to hit a wall and feel overwhelmed. Expect a struggle.

Expect to keep moving forward no matter what.

Don’t start this year with a bang.

Start with passion, start with some true grit, start with a crazy idea.

But for Pete’s sake, just START and whatever you do, don’t stop.

Then when you feel the “bang,” you’ll know it’s time to pause, reflect, enjoy how far you’ve come…and start all over again.

Why You Should Be Thankful For Your Lack Of Music Licenses

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It’s a really special time in United States culture this weekend, Thanksgiving. While most of the folks reading this will be preparing for a turkey dinner with family and friends, a lot of my readers across the globe will be carrying on with their lives as normal.

Either way I hope you’ll find today’s thought interesting and useful.

Many times when talking to artists I hear “I really want to get my music on TV.”

It’s awesome and I love it. It means they’ve done some homework and have discovered music licensing. They’re starting the arduous but rewarding path it presents.

It’s a long journey, equally frustrating and inspiring – this is true whether its your own music, someone else’s catalog, or your new role working in the music industry.

Today it’s important to remember how incredible it is to be able to focus on something like music licensing, no matter how challenging it gets, instead of having to worry about basic needs like food and shelter.

It’s very easy to tell ourselves a story about how difficult things are, but this really just boils down to an excuse we use to pardon ourselves from doing the work.

Today, give thanks – among all the other great things in our lives – for challenges, inspiration, success, and learning experiences (sometimes called failures).

The more we treat obstacles as opportunities, the more likely we are to accomplish real goals.

Here’s The Fastest Way To Get Music Licensed + 10 Ways Brands Use Music

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If you’ve been reading for a while, you know that I’m very engaged with connecting music to advertising. Today, I want to get your wheels turning and get you thinking outside the box.

What is the fastest way to get your music in a commercial?

This answer may make you laugh: start a company.

Originally I thought the answer was “start an advertising agency” but that isn’t really correct though could still be effective.

Ad agencies still answer to clients (most of the time – sometimes they’re given artistic freedom by the brand). So even ad agencies can’t guarantee their final creative decision will be the approved one (even though plenty of times it is).

Music is tremendous at creating engagement and targeting specific demographics that brands can’t help but put it into everything they do.

Let’s look at 10 specific ways brands can use music:

  1. Original content – some brands like Patagonia create amazing content which features the stories or glimpses of active individuals.

  2. Digital shorts – the internet obviously provides a great medium for brands – they’ve got a captive audience (don’t you hate when you can’t skip the commercial before a YouTube video?) and extra time to work with.

  3. Events – Brands often sponsor events where they give out free product, or sponsor performances or activities in exchange to expose their image to a large audience.

  4. Product Demos – Lots of brands make items that are music-centric. Sonos, Jabra, Beats, all of these companies make speakers and headsets and many of them utilize music to demonstrate how great their product sounds.

  5. Promotions – Ever wonder how bands show up on a brand website or facebook page as part of a ticket giveaway? Sometimes it’s because the brand is already using their music in a spot, sometimes they’re sponsoring the event, but this is another great way for brands to use music.

  6. Products – When was the last time you went to Starbucks during the holidays and they weren’t selling a CD or two at the register? It’s all a part of a branded effort!

  7. In-Store – Sometimes to promote the very CD at the register they’ll play it over the speakers in the store. That way when a customer says “I love this song!” the person at the register can reply “It’s on our new compilation album!”

  8. In-Kiosk – Ever use one of those computers at a store to find a product? Sometimes there are videos playing on them – often with music.

  9. In-house – Did you know that music even gets licensed for videos shown at company meetings? Last year, a home-security client ended up licensing “Viva Las Vegas” to use at their annual conference.

  10. Commercial – Duh!

Now, what would be the fastest way to get your music in a film? On a TV show? Let me know in the comments!