February 26, 2016

Event Overview
AMA Atlanta February Signature Luncheon: Consumer Trends and Truths: How Marketers can Master Engagement and Build Passionate Fans at Villa Christina.

How are streaming media companies able to allow their users to shape their experiences while driving brand loyalty? Join the conversation to learn how Pandora, the world’s most powerful music discovery platform, leverages robust data to create powerful and engaging experiences for its nearly 80 million active listeners. Our innovative guest will discuss macro trends around consumers of today, the importance of knowing who your audience is, where and how they connect with your brand, and how you can leverage the power of music to captivate the attention of future fans.

Speaker
Heidi Browning, SVP of Strategic Solutions, Pandora – @Heidi_Golightly

Event Recap

On a brisk and overcast Atlanta day, the AMA Atlanta community gathered at the wonderful Villa Christina for a memorable Signature Luncheon session, featuring Pandora’s Heidi Browning Pearson. I’d like to start by thanking Heidi for her availability and continued support of our chapter! It’s no surprise that the tables were packed full in a larger-than-average room for this special occasion.

After last minute registrations, some quick power networking, and shuffling to find our seats, Mary Stenmark took the stage to provide some chapter news and introduce the session. A few noteworthy updates from Mary:

  • 34 new AMA Atlanta members since January!
  • 55 group members — most in AMA!
  • Jessica Mash recognized as Volunteer of the Month – congrats Jessica!
  • Finally, don’t forget to check out AMA Atlanta’s Job Board and Mentorship program.

Upcoming events:

Now for the meaty and insightful recap content that you all came here to see!

Heidi opened by explaining her passion behind the work being done at Pandora; creating meaningful connections between bands, brands, and music. When she’s travelling, and it happens to come up in conversation that Heidi works for Pandora, the stories and love for the brand expressed by mere strangers is overwhelming. Everyone has their story and passion behind the brand, often pointing to their favorite station or time spent listening.

Here’s a quick look at Heidi’s customized Atlanta presentation slides — so fun!

Atlanta Loves Music!
1 Million Unique Listeners
561 Million Songs Streamed
37 Million Hours Listened
25 Million Total Thumbs

Atlanta Gets Down!
Top Artists for Women: Kehlani, Tink, Ciara, K. Michelle, Jacquees, Meghan Trainor, Ariana Grande, Beyoncé, Keyshia Cole, Selena Gomez.
Top Artists for Men: Metallica, N.W.A., AC/DC, Young Jeezy, Ariel Camacho & Los Plebes Del Rancho, Eminem, Wiz Khalifa, Los Temerarios, 2 Chainz, Tupac.

Atlanta Keeps it Hot!
Top Genres for Women: Today’s Hits, Today’s R&B And Hip Hop Hits, Pop & Hip Hop Power Workout, Today’s Hip Hop and Pop Hits, R&B Love Songs, 80’s R&B, 90s R&B, Rap Strength Training, Today’s Country, Twerk.
Top Genres for Men: Rap Strength Training, Today’s R&B And Hip Hop Hits, Today’s Hits, 80s R&B, Today’s Hip Hop & Pop Hits, Rap & Hip HOp Pre-game, Trap Rap, Pop & Hip Hop Power Workout, Rap 2015, Today’s Country.

Very interesting insights to the Atlanta consumers and music scene, highlighted by Workout stations, and a few surprise Latin artists. Heidi took this opportunity to mention that the Latin segment is one of their fastest growing markets — also very interesting.

Nationwide, an impressive 80 million people listen to Pandora monthly, which was accomplished with little-to-no paid media, as Heidi explained. They built the passion and engagement organically, but realize that this technique is not sustainable and they must continue to deepen relationships for more engagement.

Heidi then took us through a few trends and truths, followed by some campaigns and results we’ll dive into later on.

Macro Trends

#1 – Fragmented, Shrinking Consumer Attention Spans (in regards to media)

It’s been said that humans now have a smaller attention span than that of a goldfish. Well, Heidi reiterated this development and honed in on how valuable it truly is to get a share of someone’s attention.

#2 – Personalization Everywhere: “Now Playing – You!”

Personalization impacts everything these days. A strength of Pandora’s is seen in their personalization and recommendations algorithm. They’re among the best-in-class, and are looking for ways to increase your thumbing to continue to personalize and build a deeper relationship.

#3 – Data, Data Everywhere

Between the Internet of Things, wearables, connectivity, etc. etc. we’ve become obsessed with our “quantified-self” and self-improvement. With these obsessions come inherent sharing. Lots, and lots of social data sharing. (We’re looking at you, Mrs. 15,000 Fitbit steps per day!)

#4 – Show Me You Know Me!

This derives from the Millennial-based expectations of any given brand. Millennials expect a two-way dialogue, and have (for the most part) learned to tune out mass media. Make Millennials feel invested in with personalization, and your brand will ride the coattail of Millennial love for years to come.

#5 – Sonic Boom.

Heidi described this macro trend as a complete transformation. At CES (the International Consumer Electronics Show, held annually in Las Vegas) we’re seeing a switch from touch screen innovations to sound-based innovation. Think voice activation, voice recognition, and the various other uses of sound in the future. Today, if your strategy includes audio, it will help you dramatically in breaking through the clutter and get in with the “earphone culture.” Fact: You can process multiple visual cues at once, but can only process one sound.

Truth Trends

#1 – Time spent in mobile apps has passed TV for the first time. (via Flurry)

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#2 – 75% of people choose music as their top choice of entertainment. (via Nielsen)

Music is the universal language that connects us. It’s a deeply emotional experience, and transcends culture. Example: shawnthezombie tweeting that he lost 75 pounds thanks to Pandora!

#3 – The music you listen to when you’re between ages 16-22 is the most meaningful in your life in regards to nostalgia, memories, etc. (via Edison Research)
IMG_9034

#4 – Experiences > Things.

67% of millennials would rather spend $150 on an experience, over a physical item. Interestingly enough, this trend was also true in 74% of women. Fact: Millennials are a generation that are NOT hoarding and collecting things.

Heidi then took us through some marketing challenges.

challenges1

Challenge #1: Fragmented Media
Challenge #2: Data, Data Everywhere
Challenge #3: Creative for Mobility
Challenge #4: Measuring ROI

Solutions: Pandora is always looking for ways to win share of attention, and by doing so have placed the consumer at their core. They’re beginning to humanize their data, with insights as to, “What does this really mean?” By putting the consumer at the core, Pandora’s been able to connect on a deeper and more emotional level, thus raising engagement.

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In leveraging the passion point of music, Pandora created their “Thumb Moments” campaign. We watched the clip featuring Nick Jonas surprising fans with one-on-one concerts. The idea behind these campaigns was simple: Increase the amount of thumb actions (critical to Pandora’s long term business), thus increasing the long term retention strategy and enhancing user customization/personalization. Clearly this type of campaign is not scalable or sustainable, so Pandora needed to come up with something else…

Meet Thumbprint Radio, a uniquely personal station comprised solely of your thumbed-up songs! The concept was product of a Pandora Hackathon, and has been wildly popular since launch. To get this station: Create a Station –> “Thumbprint Radio” –> Enjoy! In launching the product, Pandora activated 33 influencers to describe their experiences with Thumbprint Radio. Reaction – That’s my Ish! 

The initial takeaways (after 1-2 months) of Thumbprint Radio seen below, with significant results in the Recaptured Fans, Station Ranking in Listening Hours, and Increase in Thumbs categories.

thumbprint

 

Case Studies

#1 – Huggies + Kimberly Clark

Simply put, Huggies partnered with Pandora to create a Baby Making Station around Valentine’s Day. Yes, you can imagine the playlist includes lots of Barry White. The station lives on for as long as you’re opted in, meaning the brand needs to refresh the playlist every few weeks to ensure listener retention.

This introduces the concept of Sponsored Listening, still somewhat new to world of Pandora. Basically, ad-free music for uninterrupted music “moments” we’ll call it. 🙂

#2 – Taco Bell

Taco Bell had a very different challenge, being a physical fast-food location with specific price points, as they hoped to raise awareness of a new menu innovation – the breakfast menu and a free Biscuit Taco. The campaign was aptly titled, “Breakfast Defector.” In creating this campaign Taco Bell partnered with Pandora to take Sponsored Listening to another level. Basically, an ad would appear for a free Biscuit Taco, and offer for 60 minutes of uninterrupted music if you opted-in. Taco Bell was able to hit 40+ million Millennials through Pandora, and integrated a layered mobile campaign to include audio, display, and video ads to recapture the audience.

The campaign launched successfully through the concept of offereing the audience a sipmle chose and a reward. By opting-in and engaging around a 15 second ad, you received a free Biscuit Taco and 60 minutes of uninterrupted music. Of course, Taco Bell’s brand messaging would be placed throughout the 60 minutes, but without disrupting the music experience.

Awareness Results: +16% lift in “Biscuit Taco” product association, +28% lift in “Breakfast Defector” message association, and +26% greater awareness of the Biscuit Taco than unexposed survey respondents. (via Millward Brown)

Localized Results: 15% more likely to visit a Taco Bell location, and 1 in 7 of the exposed listeners who visited ended up returning within a 10-day period. (via Placed)

Heidi wrapped up with a touching story of how personalization drives 1:1 engagement. Enter the lives of Maggie and Kyle, two lovers united by their love of music (in Maggie’s case, Pandora). Kyle decided to make his engagement personal, memorable, and creative; so he reached out to Pandora and was able to secure a custom ad on a specific station during their car ride that evening. Thankfully, the ad played while they were in the car and Maggie gave Kyle the “I do” (how could she not??). This is just one, small example of what Pandora is capable of, and how spending time on personalizations can mean the world to their biggest fans.

Before opening up to audience questions, Heidi reiterated that it’s time to take industry-wide risks and share success stories, as marketing/advertising are changing as a whole. We’re at a crucial crossroads where we need to move the industry forward as a group, and every collective effort helps. We agree, Heidi, and that’s why we bring powerful and engaging speakers like you to Atlanta!

Audience Questions:

Q1: How do you find and activate influencers?

Heidi: Our agency finds the influencers. Pandora will internally find influencers who participate in sharing the stations/service in general, but most of the efforts are on the agency side.

Q2: Demographics of Pandora listeners?

Heidi: Roughly 50% iOS and 50% Android. 80% mobile, 20% desktop. However, Smart TVs, Sonos, Xbox and Playstation, etc. usage is increasing rapidly. This falls in the social listening category, as an in-home experience, as people are utilizing the service while hosting guests.

Q3: What’s a major challenge that keeps you up at night?

Heidi: Growing the user base. The music industry is complex by nature, and you must stay on top of the latest news/trends related to radio, on demand, and live events. However, this presents an opportunity in data mining as well. Based on data analytics, Pandora is able to activate local, live events (i.e. Atlanta hip hop show for Pandora listeners) as the artists are trending in an area. Pandora does this about 54 times per year, and the shows are complimentary to listeners as sponsors foot the bill.

To supplement the live event activations, Pandora acquired TicketFly in late 2015. TicketFly specializes in selling tickets to smaller/mid-sized venues, where a 40% unsold ticket figure is not uncommon. Pandora is able to target the right people at the right times to sell more tickets.

That wraps up the February Signature Luncheon blog recap! For those of you who attended, thank you, and for those of you who missed out – we hope this provided a thorough takeaway. A previous version of Heidi’s engagement presentation can be found on SlideShare, here.

For more AMA Atlanta information, event updates, and recaps follow AMA Atlanta on FacebookTwitterLinkedIn and Instagram: @AMAAtlanta and #AMAATL

Blog by: Steffan Pedersen | Director of Digital Marketing, Object 9 | @steffanpedersen

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