Email Marketing Insider Summit

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Email Marketing Insider Summit

• Bob Frady
• Vice President Digital Marketing
• December 2008

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(No Transcript)
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Live Nation is the worlds leading live
entertainment company, annually connecting more
than 60 million fans with their favorite artists
and shows at over 36,000 events. Live Nation
Mission ..... We Ignite the Avid Fan in All of Us.
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The problem with email at Live Nation

• We dont control the store
• Ticketmaster
• eTix
• Were divorcing our store owner
• We are full of traditional marketers who have
  trouble adapting to the realities of digital
  marketing
• Our senior management are (largely) not members
  of the digerati
• My least favorite phrase
• Think like a marketer

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Issues with Email Metrics

• It can be measured
• It assumes linear behavior
• Its oven viewed as database magic
• People still have a CPM mentality (More is not
  always better). These people can be your enemy.
• Segmentation is a great concept, but difficult to
  execute
• Email marketers are focused on metrics that mean
  something to us, but little if anything to senior
  management
• However, not having the metrics is much worse
  than not having them

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Direct Marketing E-Cards/Newsletters Impact
Source
Our commitment to segmentation and proper list
management allowed for a 20 Increase in number
of campaigns, 51 Increase in number of e-mails
delivered and 6.5 increase in the overall open
rate
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Email Revenue

• Increased the ticket sales per opened email by
  31.4
• Increased ticket sales from email (est) by
  100.7
• The database is working much more effectively
  than last year

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Traffic To Livenation.com
Source Omniture and LNDM
E-mail based traffic to LN.com grew 57 last
year, ahead of our goal of 50
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The Issueemail centric report mean something to
us. These reports overly confuse senior
managementemail data is tactical. Management
wants strategy. (aka job security metrics)
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Metrics that mean something to senior
management (aka the promotion metrics)
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What are the values of Senior management?

• Ticket sales
• Ticket sales
• Ticket sales
• Getting the right tours
• Sponsorship revenue
• Spend efficiency
• How are customers behaving and how do we best
  utilize those technologies
• Size and scope of digital capabilities

Email can help sometimes significantly with
ALL of these issues
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• Question 1 What does all this database stuff
  mean to ticket sales?

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Opt-in Customer Purchase Behavior
Email is very effective at reaching the active
music customer. For the first time, the of
ticket sales to ECBD Opted-In members represented
the majority (42) of trackable ticket sales
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Impact of Database Marketing 2005-2008
The amount of ticket sales that are sent email
are 9 times as great as what we can measure using
traditional systems.
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• Question 2 What is going on with our customers?

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Among our key demographic group (25), e-mail is
the most preferred electronic comuunication
channel. However, the younger demographic (15-24)
shows a strong inclination for SMS/Mobile
communications
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And here comes mobile!

• Mobile devices are used to check e-mail and surf
  the web
• The 1 function on the iPhone is accessing email
• The more affluent, the more likely a user is to
  access the web via a handheld device

Affluent users access the web 25.9 times per week
from their computer, 17.6 times per week from
their mobile device. Over 60 of iPhone users use
their phone to access the web
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Ticket Purchase Methods
15 of Ticket Sales are sold via Retail (10) and
Phone (5) Channels
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Media Preferences by Purchase Channel
Email and Online Channels are dominant for all
purchase channels except Phone.
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Concert Attendee Media Channels Preference by Age
E-Mail is preferred by 37 of consumers 2.6
times as much as radio. Among 25-64 year olds,
email is preferred by 44 of consumers. Among
13-24 year olds, Online channels are the most
preferred
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Channel Preference by Genre
E-Mail is the top channel preference for Classic
Rock (39), Country (44), Metal (38), Latin
(36) and Jazz/Blues (53). Online is preferred
for Alternative Rock (46) and Rock/Pop (37)
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• Question 3 Whats your spend efficiency?

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Spend Efficiency

• We have sent 50 more email, generated 57 more
  web site visitors and gained over 400,000 contest
  entries than 2007. All for the same spend as last
  year.
• Our average marketing cost per ticket is X
• The cost to generate that ticket sale via email
  is over 50 less than X

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• Question 4 whats the real value of email
  marketing?

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Impact of Dedicated E-Blasts
For LIVE NATION shows where ROME reports more
than 50 tickets sold, there are significant
increases in sales at the Amphs (15.1), Arenas
(50.5), Clubs (8.3) and Theatres (51.1)
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Summary

• Email statistics are pieces of lumber, not a
  house
• If you cant put it in a context that means
  something to your management, your efforts will
  be marginalized
• ROI and like-minded measurements are not as
  strong as you think they are. Nobody really
  believes them.
• Think about your impact on the overall business.
  You dont have to be exact you have to be
  compelling

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One last thing

• We spend 20 less on marketing than we did two
  years ago
• We have doubled our e-mail efforts in the same
  time period.
• In that time, we have been the 2nd fastest
  growing brand in the US.