Radiohead's Marketing Ploy Not A Stunt; Just Good Business

from the confused-people dept

Soon after Radiohead announced its plans to offer name-your-own-price downloads, the band's manager said in an interview with the Financial Times that they were doing so in order to boost CD sales. For some odd reason, this statement has apparently pissed off a bunch of people who keep submitting the FT article over and over again for weeks to say that Radiohead's decision is now suspect. However, that doesn't make any sense. As we said when Radiohead first made the announcement, it was clear from the beginning that they were trying to give them reasons to buy the CD. It wasn't a bait and switch situation at all, as they were quite upfront about it. It also isn't a bad thing. It shows the band is doing exactly what the economics suggests it should be doing: using the infinite goods (the music) to help make the scarce goods (CDs) more valuable. The band never said you had to buy the CD. It just said that you can pay what you want (including nothing at all) while also making it clear that the CD was going to be a lot more valuable to own. That seems like a smart business move. About the only mistake in there seems to be that the band accidentally made people think that it was somehow against selling CDs, even though it was clear from the beginning that the band still wanted to sell a CD version and make it worth owning.

Filed Under: business models, marketing, music, radiohead

You Mean Second Life Marketing's Not All It's Cracked Up To Be?

from the hype-hype-and-more-hype dept

It seemed pretty obvious from the outset that all the corporate interest in Second Life was driven more by hype than clear thinking. Company after company set up shop in the virtual world, either coming up with some pointless way to try and do business there, or more frequently, for marketing purposes. The only problem for marketers? Second Life is a pretty worthless place to try and sell people on your company's brand and products. Wired gives a laundry list of drawbacks, but the biggest is that very few people actually use Second Life. As has been pointed out before, the number of active SL users is nowhere near the number of "residents" it's supposed to have. SL claims more than 7 million residents, but that's just the number of how many avatars have been created. Linden Labs, the company that runs Second Life, says that 4 million people have created avatars, but just 1 million have accessed the world in the past month, and less than a third of that had visited in the past week. And within the world, people seem interested in little more than gambling and sex, Wired says. Still, companies that build in-game properties for big corporations say they're doing booming business, thanks to many marketers' lemming-like attraction to fads. A quote from Coke's director of interactive marketing sort of sums things up: "This is not about reach anymore. This is about connecting. It's about establishing meaningful, impactful conversations. So when people ask, 'Why Second Life?' I ask 'Why not?'" It's lovely that he wants to have these "meaningful conversations" with people about Coke. It's too bad that the lack of real interest in Second Life and the marketing efforts within it show people aren't interested in having those conversations with him.

Filed Under: marketing, second life, virtual worlds
Companies: coke, linden labs