Free All Media plans to announce Tuesday a $650,000 private equity bridge capital investment for FreeAllMusic.com. The service powers campaigns that tie digital rights management (DRM) free music downloads to brand ad campaigns on Facebook Fan pages. The app will soon support other social networks too.
Some marketers may not know about a Facebook rule requiring consumers to interact with brands at least bimonthly. Newly appointed Free All Media CEO Habib Khoury said that interaction provides a sort of opt-in approval processes that allows the brand to continue to send promotional materials to the Facebook Fan.
FreeAllMusic.com supports Facebook campaigns on desktop and mobile as an application that appears on the brand's Fan page. Facebook Fans activate the app. To get the content the Fan must interact with the brand. The brand pays for the music track.
The company -- Free All Media, formed three years ago -- supports the theory that consumers exchange attention for content. With the demand for music, the model focuses on supporting premium content and increasing the value of the relationship between the consumer and the brand, said Free All Media Founder Brian McCourt.
It turns out that not only will consumers trade attention for content, but they will also share links to the physical file of the song in the ad -- which not only markets the content from the brand Coca-Cola running the campaign, but also the participating music labels such as EMI and Universal Music, which supplies the music download file. Discussions with Sony and Warner to add their music as an option continue, according to McCourt.
The move to increase brand engagement, drive advocacy, build community, and increase efficiencies on ad spend drove a recent campaign to have a 22% share rate and 2.25 clicks back to the brand promotion for every wall post, McCourt said, explaining the willingness by consumers to trade actions for engagement.
The American Express campaign ran from August through December 2010, producing a click-through rate from the ad to the promotion's landing page of about 1.39%. Following the campaign promoting the Zync credit card, Free All Music developed a new Facebook app.
As for the funding, the company will invest to produce an application supported by any mobile device, and look into expanding into other channels such as Google+. The draw to social comes from the ability to create a community, Khoury said.