Gales Network • Brand building from the inside out

The Gales Network: Focused brand management and business development

12 June 2007

Discovery Tools

Big Ideas Topic: Discovery Tools
The Big Idea behind online music (and entertainment) Discovery tools is that they will increasingly dominate how “content foragers” find, consume and buy entertainment. Not to be confused with search tools, these category-specific referral sites utilize traffic patterns, user feedback and other programmed criteria to sort through the vast array of options bombarding product seekers both online and now via mobile to offer highly tailored options. A variety of recommendation platforms (Last.fm, Pandora, Musicovery, iLike, Mystrand, Gombah, lala and regional JamNow) function as entertainment filters on the Web.

At Issue:
With so many new Discovery platforms attempting to brand themselves as the “next big thing” the issue for most rights holders is how to use limited resources to position content for maximum ROI. Is this new marketing opportunity providing real return or distraction for your branding objectives? Should you divert resources to Discovery or stick with traditional channels until things shake out?

Big Ideas View:
First, content holders need a clear sense of their brand and its audience. The efficacy of Discovery and other new channels depends greatly on the genre, demo and degree to which audience members are “content foragers.” This term, coined by Gartner’s Mike McGuire, refers to highly active music consumers and their tendency to look for entertainment in a variety of places, not just the usual suspects. Generally, the older, time poor and less tech-savvy the brand audience, the lesser the tendency to forage for entertainment. Conversely, those who are more technically dexterous, with more flexible time have a greater appreciation for entertainment Discovery tools.

According to JupiterResearch, nearly half of all music discoverers do so from friends. With the advent of dedicated Discovery tools or those imbedded in social nets (MySpace, Tagworld, hi5) the only thing that has changed is the definition of “friends.” Content foragers are eager to accept recommendations from friends as defined by digital communities to which they belong.

Another valuable characteristic of entertainment Discovery is the ability to have an unrushed dialogue with consumers and develop real affinity for your brand with them. This quaint pursuit used to be called “artist development” in the music industry and it is all but dead in traditional circles. Neither the time, money, nor interest exists to build authentic artist brands exclusively with traditional media. Tight radio play lists, few national broadcast slots, costlier touring and declining audience interest in these traditional channels make artist development tough. Discovery has all the ear markings of a “killer functionality” for all forms of entertainment and commerce, not just tunes. These tools can build interactive, authentic, cost effective relationships between brands and fans, generate actionable consumer data from those relationships and, importantly, execute immediate transaction$.

Discovery is still in the early stages of establishing consumer value. As platforms evolve, algorithms are refined, legal issues removed and interoperability challenges resolved; Discovery tools might become the Holy Grail.

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The Big Ideas Report separates the real issues (Big Ideas) from the noise, so that it’s possible to move forward with confidence or simply converse intelligently with others. We identify issues that have a material impact on your business, define them succinctly and suggest a position, so you can get going. Part fact, part opinion, part alchemy, that’s The Big Ideas Report.