How Smirnoff and Madonna Inspired the World to Dance

SMIRNOFF MADONNA

Co-brands between artists and celebrities are all the rage, as evidenced recently by the launch of Justin Timberlake’s relationship with Budweiser and Alicia Keys’s co-brand with Blackberry. At the Forrester Research Marketing Forum April 19, Christopher Swope of Live Nation provided a case study on how artists and brands can work together to deliver results. His discussion focused on how Madonna and Smirnoff, by tapping into shared passions such as dancing and music, generated 1.8 billion media impressions for Smirnoff and helped Madonna undertake the highest grossing tour of 2012.

As Swope pointed out, brands and musicians actually have a long history of working together, examples being Microsoft using the Rolling Stones’s “Start Me Up” to launch Windows 95 and the collaboration between Apple and U2 to cross-promote U2’s “Vertigo” with a special edition iPod. In the best cases, co-brands meet mutually defined goals, and the relationship between Smirnoff and Madonna was one such success.

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The relationship began with a business challenge for Smirnoff:  accelerate consumer engagement with the Smirnoff brand on a global level.

“We wanted to find a way to accelerate the growth of the Smirnoff brand and generate engagement,” Swope said. “We wanted to take the brand to the next level and deepen engagement and participation.”

Smirnoff knew its fans are socially savvy. So for Smirnoff, building a brand was less about “let’s sponsor and put our name on it” but rather to generate engagement and deepen relationships with fans.

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“When you are giving a dinner party, you worry about the right ingredients — mix of cocktails and people,” he said. “You want to create an experience that deepens relationships. That’s how to think about social.”

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Madonna doesn’t need all your luvin’

Wow. Madonna’s critics really have their knives out this week. But she might end up having the last laugh.

As you might have heard, sales of her latest album, MDNA, suffered the biggest second-week drop in chart history.  Since the news broke, the highly regarded Lefsetz Letter has stated bluntly that Madonna has lost touch with her audience. Forbes contributor Roger Friedman blames Madonna for creating boring songs and not caring. The problem is that her naysayers are measuring the wrong metric. Especially for multi-media brands like Madonna, sales of compact discs don’t count for much anymore – and haven’t for about 10 years. The real action for the Madonnas, U2s, and Bruce Springsteens of the world comes from sales of tickets and merchandise. We won’t be able to assess the health of the Madonna brand until the sales results are known for her 2012 World Tour, which begins on May 29 in Israel and comes to North America on August 28. So far, reports of preliminary ticket sales have been largely positive, but it’s best to wait until actual revenues are reported.

Ironically, MDNA was engineered to realize a sales drop – certainly not to the magnitude that Madonna probably expected, but a drop was indeed part of the plan. As Billboard reported, “MDNA’s” large fall was expected, as its debut was bolstered by sales gained from a concert ticket/album promotion as well as pre-orders from iTunes.” In other words, the CD supports the tour, not the other way around — a strategy that makes perfect business sense for a well established act.

By the way, do you know who previously held the record for the biggest second-week sales drop in history?

Someone by the name of Lady Gaga for Born This Way.