Calculating Return On Investment For Music Advertising
On Music Think Tank, Bruce Warila writes about getting the music advertising ROI (Return On Investment) calculation right. It sounds like a subject just for geeks, until you realize that after making great music and social media, advertising can be the most effective way to grow an audience quickly. Inexpensive hyper-targeted paid campaigns (i.e. ReverbNation's Facebook ads or even Headliner.fm) can drive traffic in ways that were unthinkable a few years ago. Of course, nothing is quite that simple:
"As more and more labels and artists use advertising to bridge the gaps between social media islands, it’s essential to get the advertising return on investment (ROI) calculation correct. If a potential fan is not yet a fan, and if a pre-fan is not really a fan, then you need to apply TWO conversion rates to your ROI calculation."