On April 2nd 2024 Taylor Swift officially became the 2545th richest billionaire on the planet. (There are apparently a lot of billionaires these days). According to Forbes she is the first musician to achieve this from talent alone (not needing side hustles). A new concept has been named for her. Swiftonomics, coined by Bloomberg, originally was conceived as a way of explaining how her 2022 tour bucked the overall economic trends in the US. Advance sales of her tickets sold out and huge premiums were paid for resale. And the trend has only continued to accelerate. Apparently profits from her Era tour make her as rich as the 36th biggest nation in the world. Recently the tourism minister of Indonesia, Sandiaga Salahuddin Uno, said: “We need Swiftonomics for Indonesian tourism” and created a fund to bid for events like a Swift concert in order to boost the travel industry.
The supply of an unmissable product or event can create truly significant revenue. The Federal Reserve even mentioned Swift in its June 2023 Beige Book, its regular analysis of recent economic conditions, stating that “May was the strongest month for hotel revenue in Philadelphia since the onset of the pandemic, in large part due to an influx of guests for the Taylor Swift concerts in the city.” It’s not just the Swift product. Barbieheimer, Beyonce and Abba Voyage (of course not actually in real life), women’s football, new formats of cricket, have all created new revenue streams. And a bit of comfort for people who are worried about AI is that according to The Economist “even if AI surpasses humans in art, intellect, music and sport, humans will probably continue to derive value from surpassing their fellow humans, for example by having tickets to the hottest events.”
What can brands and advertisers learn from this?
The first clear lesson is make it live. The latest IPA Bellwether Report pointed to a boom in events. A prestige occasion that was unmissable, you had to be there where marketing can deliver brand equity and create new memory structures outside of advertising alone. The report indicates that “main media budgets” might decline, but events show unprecedented growth. Paul Samuels, evp AEG Global Partnerships, is quoted in Campaign saying: “While an advert lasts just seconds, an event lasts for hours – and the memories, a lifetime – giving brands longer to engage with consumers and enhance their experiences.” You clearly cannot reach as many people with an event as you can with a paid media campaign, even with an artist who is working as hard as Taylor Swift, but you can create lasting impact in the hearts and minds of those who are there.
Lesson two, you do not have to reinvent everything. Too much revolution in communications can be overrated in terms of commercial success. Ditching the slogan, changing the logo, creating a completely different ad campaign might be exciting, but might not deliver the outcomes that have been planned for. Thinking about Swift herself, her longevity is important. Her multitude of fans can count on a gentle evolution of content that sounds familiar and yet is refreshed. This sometimes goes against common advertising practices of calling wear out long before the audience is weary of the ad, and of abandoning strong brand equity with a full makeover of comms. Dominic Twose, the former head of knowledge management at Millward Brown, explains that advertising wear out is rare, the response to an ad shown over months or even years is consistent, and if people enjoy the ad, then this doesn’t diminish through repetition. A new Channel 4 study on sponsorship shows that effectiveness in driving purchase intent improves as time goes on, (even if people claim that they are fed up with the idents). As Taylor herself puts it: “I never want to change so much that people can’t recognise me”.
Diversification of revenue might not be how Taylor became a billionaire, but it hasn’t hurt her bank balance. The sales of vinyl have stepchanged because of her and she’s sold lots of friendship bracelets and movie tickets too. The Eras tour reportedly broke all records for event cinema within 3 days of opening in UK and Ireland.
Above all the lesson from Swiftonomics remains that real talent, dedication, hard work and passion are what drives success. Leaving the last words to Taylor: “Just be yourself, there is no-one better”.
“Gradually, then suddenly.”
May 28th, 2024Ernest Hemingway fans will recognise this as the apparently contradictory yet ruefully truthful reply that Mike Campbell gives when he’s asked “How did you go bankrupt?” in Ernest Hemingway’s iconic novel The Sun Also Rises.
It’s an important concept. It might seem contradictory, (if its gradual, how is it sudden?) but it isn’t uncommon and can lead, as in Mike’s case, to catastrophe. When change is obvious, you can deal with it, when its gradual, it can be easy to ignore until it suddenly accelerates, when coping strategies may fall short.
In the absorbing and extraordinary book Blue Machine, how the ocean shapes our world, author and presenter Helen Czerski uses the phrase to describe the constant reshaping of the sea. “The gradual changes are the slow shunting of the whole plates around the globe, at speeds of a few centimetres per year.” Then all at once changes are “thousands of tiny earthquakes.. the solid sea floor dropped by 2.4 metres, clearly an eruption…. Long jagged mountainous scars zigzag around the global ocean… each one rumbles along with its own dramas and growth spurts, for the most part hidden by the ocean.” It’s not directly related but as we face increasing Ocean temperatures, we must pay attention to gradual changes before they become seismic.
This observation is key to delivering transformation and change in an unstable world. Dramatic changes are a surprise, a shock even, simply because on the surface, on the blanket of the deep ocean, everything has looked under control.
Any organisation with a complex matrix management system can be prone to this, because the tendency to manage upwards and across, can lead to people smoothing over any minor changes until it is too late to change course in time.
Any team that lacks a challenger embedded in it is vulnerable to group think and consensus, which again can mean missing the warning signals of change.
Gradually and then suddenly is a danger to us all. It can happen in relationships where suddenly the small things that aren’t right become impossible to live with. And it is happening with trust.
Dan Slivjanovski, CMO at DV, gave the keynote at the Campaign seminar DV Impact: Protection, Performance, Outcomes on May 8.
He warned about the proliferation of fake news online. He told us about an egregious example of this that matters hugely to Londoners: the instance of Sadiq Khan, London’s mayor, who said that deepfake audio of him making inflammatory remarks before Armistice Day 2023 nearly caused riots in the capital. The clip used AI – artificial intelligence – to create a replica of Mr Khan’s voice saying words scripted by the faker, disparaging Remembrance weekend with an expletive and calling for pro-Palestinian marches, planned for the same day last November, to take precedence.
Intended to sound like a secret recording, it said: “What’s important and paramount is the one-million-man Palestinian march takes place on Saturday.”
The clip imitated Mr Khan, the first Muslim mayor of London, saying: “I control the Met Police, they will do as the Mayor of London tells them…the British public need to get a grip”. It said the prime minister meeting with Met Police Commissioner Sir Mark Rowley was “a waste of time” because “the buck stops with me”.
According to BBC news coverage: “Mr Khan said the fake audio “wasn’t a bit of fun” or “satire” and its creator had not been “naive” about the consequences it could have.
Mr Khan said organisations such as the Electoral Commission, which are responsible for keeping the UK’s elections “free and fair”, also needed more powers to deal with faked information.
There is currently no criminal law in the UK which specifically covers this kind of scenario.
The mayor said it was also “really worrying” that social media companies did not contact him or the authorities about the faked audio at the time it went viral.”
Renee DiResta of the Stanford Internet Observatory explains: “social media took the cost of distribution to zero, and generative AI takes the cost of generation to zero”.
Deepfakes are increasing exponentially. According to Sumsub research there’s been a significant 10x increase in the number of deepfakes detected globally across all industries from 2022 to 2023: 1740% surge in USA, 1530% in APAC, 780% in Europe.
The 2024 Edelman Trust Barometer named a new paradox at the heart of society. Rapid innovation offers the promise of a new era of prosperity, but instead risks exacerbating trust issues, leading to further societal instability and political polarization.
According to Slivjanovski 99% of all content could be AI originated by the dawn of the next decade. Unless AI tools for detecting and deterring deep fakes grow at a faster rate than the deep fake proliferation, then the impact on trust might be sudden and irreversible. We all need to pay attention to this or gradually mounting distrust will develop into sudden and irreversible disruption.
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