Klick Push is launching a platform that allows brands to integrate music into banner ads or use tunes as a way to drive loyalty. The company has signed agreements with several recording labels to license about 10,000 songs.
The platform, Adjams, allows consumers to preview the song in the ad units. Similar to Pandora, clicking thumbs down in the ad unit if the consumer doesn't like it skips the song to the next, similar to Pandora. About 58% of people click "Next," said Ben Jorgensen, co-founder and CEO of Klick Push. "About 80% to 90% click on the ad, spending approximately two-and-a-half minutes engaging with the ad and the brand," he said. "It's about connecting with the individual emotionally."
Jorgensen said the business model focuses on connecting emotionally with consumers through music. He worked directly with the music industry to acquire the rights to thousands of songs that create a unique catalog. These labels want new ways to put their client's music in advertising campaigns.
The music integrates into a standard Interactive Advertising Bureau (IAB) ad unit. Behavioral signals provide insight into the type of songs to serve. An unnamed Fortune 500 brand wanted to acquire new users through email, so Klick Push integrated music into an ad unit. The trial earned a 13% click-through rate (CTR), 4% share rate, and 83% opened their email after signing up. The brand also experienced an 18% lift.
Klick Push also continues to build a data pool based on thumbs-up or thumbs-down feedback of the songs, along with "high-level non-personally identifiable data around demographics like targeting location, browser, Web site context, and device type.
In the future, the company could use search data such as the last click before entering the publisher's site to determine the songs that serve up in the display ad unit on the publisher's site. Adjams knows where the user came from through referral links that hit its servers. It gives the platform a high-level understanding of what the user is going to search for or the type of content she might interact with. The retargeting services will increase as the platform matures.
Since launching in a limited beta during the past few months, Adjams has gained more than a million registered users downloading or interacting with music, about 80% of whom are in the United States.
The loyalty programs work a bit differently. Think how Starbucks promotes the song of the week. Klick Push has worked with BellyCard to bring loyalty programs to brands. The cards provide music as an instant reward.
Klick Push received $250,000 in seed funding by a group of investors, including David Humphrey of DTH Capital Ventures, and Guillermo Marmol.