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Apr. 29, 2009
INDUSTRY REACTS TO CMA CONSUMER RESEARCH SEGMENTATION STUDY
CMA Members and Guests Explore Key Findings and Discuss “Next Steps” for Business Development During Town Hall Meeting Tuesday in Nashville
NASHVILLE - The Country Music Association unveiled key findings from its 2008 Country Music Consumer Segmentation Study Tuesday during a free Town Hall meeting at the Hilton Hotel in Downtown Nashville for CMA members and their guests.
The research project grew out of CMA's strategic mission of providing timely education and being a repository for information useful to the industry. It was the largest and most comprehensive look at the Country Music consumer in the 50-year history of the Association. The Town Hall meeting was the second presentation of the research findings. The first was during Country Radio Seminar in March. Tuesday's discussion focused on ways that CMA members can incorporate the study results into their individual business plans.
The Town Hall "speaks to CMA's commitment to providing actionable, consumer-building insights, while providing a forum for generating ideas that strengthen the format for all of our constituents," said Randy Goodman, Chairman of CMA's Board of Directors and President of Lyric Street and Carolwood Records.
The findings offer new insights into the Country consumer with information on media consumption including Country record sales, radio and touring, as well as media usage and consumer analysis culled from a phase one sample of 7,500 individuals; a second sample of 1,850; and 10 focus groups from three regions of the country. Findings from a follow up study to determine the impact of the current economic crisis on the Country consumer was also presented.
The meeting included the introduction of an algorithm that CMA members can apply to their consumer databases. The algorithm is a set of 14 screening questions that will enable the user to replicate the segmentation study in their own research vehicles. Essentially, the algorithm can be used to identify all core and potential Country consumers with a minimum of 75 percent accuracy, enabling members to use their marketing dollars effectively and efficiently.
CMA members, which represent every segment of the industry, responded quickly and were already thinking of ways to apply the information to their individual business interests following the meeting.
"As national television and radio producers, the CMA research is hugely valuable to us. It confirms what we have experienced over many years, that in addition to our excitement promoting new stars and pleasing young fans, there is a large mature fan base that is financially supporting country music in a big way. This group is also part of the backbone of country music, and their tastes deserve to be respected and catered to. It seems the next big task is to educate advertisers about this important demographic that contributes so much to the survival of country music," said Lorianne Crook, Producer/Host, "Crook & Chase."
"Applying the algorithm will definitely help us narrow our focus and identify those fans who are most committed to our artists and music and therefore will help us to be more economically impactful in our marketing efforts," said Johnny Dorris, General Manager, Melrose Music Group.
"CMA's research presentation was very informative. I especially look forward to using the algorithm to help identify Country Music buyers," said Kerri Edwards, Luke Bryan artist manager, Red Light Management.
"This research goes a long way to help fill the gap between what we think motivates the Country consumer and what really does in these times of transition. It also helps reinforce what many of us have known to be the case, if advertisers want to speak to all segments of America, Country Music is the vehicle to do that. I applaud CMA for funding this research and for presenting it to our industry," said Pete Fisher, Vice President/General Manager, Grand Ole Opry.
"This study testifies how a very small segment - the Countryphiles, if you will - generate so much of the business. As radio learns to identify these passionate fans and super-serve them, they will do a better job of being able to serve their advertisers," said Jeff Green, Vice President of Operations, Country Aircheck.
"The real value in this study is that it allows you to fine-tune and hone in on what those things your intuition already tells you. Seeing it validated with numbers and hearing somebody else discuss it helps you get your game a little sharper," said Jim Hester, Senior Advisor, Metro Nashville Government.
"I try to match great artists to great causes, and knowing the audience is vital to both the Country Music industry and the philanthropic community. Finding a way to merge those audiences through research like this is vital to any industry," said Rondal Richardson, Owner, Greater Purpose Productions.
"I especially like the suggestion that different components of the Country Music industry work more closely together. That cooperation has contributed to Country Music's growth - but there's always room for more of that," said Ed Salamon, Executive Director, Country Radio Broadcasters.
"It was really helpful at getting a better sense of both the core and the potential new viewers and Country fans as we go out to market to new fans for GAC and for Country Music in general," said Sarah Trahern, Senior Vice President, Programming, GAC-Great American Country.
Carol Foley (EVP, Director of Research Services for Leo Burnett) and Jana O'Brien (former EVP, Chief Consumer Officer for Starcom MediaVest Group and current Principal for The Right Brain Consumer Consulting, LLC) presented the findings.
Leo Burnett Company and Starcom MediaVest Group conducted the qualitative and quantitative research study. Their list of clients and research partners include the Walt Disney Company, Clear Channel, General Motors, Procter & Gamble, The Coca-Cola Company, McDonald's, Kraft, Wal-Mart, Nintendo, Hallmark, Visa, Best Buy, ESPN, and many others.
The presentation and audience Q&A was recorded and will be available by noon Friday on my.CMAworld.com, for those members unable to attend the event.
Foley and O'Brien will write an article that further explains the algorithm and its multiple uses. This article will be posted for CMA members to read at my.CMAworld.com on May 18.
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