Wednesday, May 25, 2011

CEO Gaga?

If you're a savvy businessperson like me, you like your information and advice coming out of Germany. And grossly incorrect.

The article "Old CEOs Can Learn A Few New Tricks From Lady Gaga", painfully tries to convince us that the singer can "school corporations in strategic innovation", based on the observations of a German business researcher.

Martin Kupp, a professor (hopefully not tenured) at the European School of Management and Technology (Berlin) expects her album "Born This Way" to end up at the top of the music charts and generate strong sales and land atop the music charts, regardless of critical reception. Wow, bold prediction! His obvious premise is based on how consumers relate to her brand, but that's where any semblance of logic ends.

"Lady Gaga blurs the industry boundaries and it's not really clear if she's a musician, artist or fashion designer," said Kupp. Actually, it's absolutely clear - how the hell are you a professor and not be able to differentiate? She's a musician. Just like Britany Spears, Cher, and Jessica Simpson. And like them, she is marketing her brand, because being a popular pop singer is a licensing licence to print money. They're not making their fragrances or clothing - they just have final approval before their name goes on it. Of course that would go over the head of a guy who recently wrote a book on business lessons from artists like Madonna (aka, the original Lady Gaga) and Renaissance painter Titian.

"I think there may be people out there who associate her much more with fashion or with other sorts of entertainment than music," Krupp added. Think whatever you want, asshole, and be wrong while you're at it. Lady Gaga exists as a musician first and foremost, and the rest is just using her Q to bring attention to whatever she puts her weight behind. This is Branding 101, and something that's been going on since the first days of marketing and business.

So why does Kupp and colleagues think she's the new paradigm? They made a recent case study and point to the singer's "social media strategy" as a way for businesses "to learn new methods to shake up an established industry". Wait, using social media to contact your fans? Did she invent this technique? Nope. Can we at least pretend that using the latest technological / communication advertising trend is original? Fine - but only so we can continue this critique, because harnessing new media is as old as any company putting their website address on everything. I mean, as old as companies having websites on the internet. I mean, as old as product placement and brand management in film and television. I mean, as old as cable television advertising for companies. I mean, as old as corporate sponsorship of radio and TV programs. I mean, as old as billboards. I mean, as old as companies using print advertising in newspapers.

So, by using Facebook and Twitter, Lady Gaga has "developed" fans through virtual interaction and not by "pushing traditional marketing principles of promotion, product and price onto consumers", says Kupp. Sorry, that's totaly inaccurate. As a musical artist, all the fan club nonsense with autographed photos and special items goes back to the days of Elvis - and that's still promotion, and via virtual interaction. And the product, be it her albums or concerts or adult diapers is the only reason to reach out to the fan, lest you forget entertainment is a business too. He's also completely wrong about price as a factor - what other reason would demand for her new album disrupt Amazon.com servers if it wasn't a tied into a promotion for their cloud music service offering a special 99 cent price?

"Social media is not a one-way communication and I think Lady Gaga understands that," he adds. "It's more about emotions, engagement and interactivity, so she's very advanced." By the way, take a moment and learn about Advanced Genius Theory...Gaga, she's not advanced at all, and certainly no genius. And she's only the top of the Twit-heap by a less then impressive margin. Her 8,627,513 Twitter followers came over 36 months when she set up her account. For comparison, Justin Beiber racked up 7,942,954 in only 24 months. And Kim Kardashian, Ellen DeGeneres, Katy Perry, and Ashton Kutcher each have roughly 6.5 - 7 million followers too. Kupp needs to understand that Gaga didn't reinvent the wheel, let alone improve it.

He can argue that her use of social media was "to create much more intimacy than what you created with traditional marketing instruments", but that's ridiculous to say in the face of her massive beachhead of promotion for the album. Not only has Lady Gaga recently graces most major magazine covers (from Rolling Stone to Vogue), but she's appeared on every high profile show, from Oprah Winfrey to American Idol to Saturday Night Live, and debuted her own HBO concert special. Beyond the media blitz, non-traditional outlets, she's fucking everywhere:

• Starbucks is selling her album and launching a "digital scavenger hunt" for Gaga-inspired goods.

• Google Chrome had a commercial with Gaga featuring a track from the album.

• Internet clothing outlet Gilt Groupe is partnering to offer Gaga-inspired clothing and purchase of VIP performances.

• Best Buy is giving away the album free to anyone who purchases a mobile phone and signs up for a service contract.

• Zynga, creator of the popular online game FarmVille, has created GagaVille, which allows fans access to exclusive Gaga songs.

Yeah, that feels intimate.

Kupp believes that Lady Gaga's business strategy has been able to breathe life into an industry that has struggled to adapt its business model, but that's the same song and dance we've not only heard before about internet downloads and piracy and the different entertainment media facets, but also read before here again and again and again and again and again and again and again and again and again and again.  Just picture my head banging against the wall rather than my fingers banging out words on the keyboard every time a moron like Kupp tries to spin that bullshit.

It's insulting to have people who are so clearly unaware of the things they're talking about act in any manner of authority on the subject. God bless Gaga for reinventing Madonna's shtick for a new generation and being successful at it, but comparing the stunts and direction of an entertainer to the methods of titans of business is pure ineptitude. Like Rupert Murdoch, Warren Buffet, Carlos Slim or Bill Gates needs to wear a meat dress or come out of an egg to promote their business. And you're even more sorely mistaken if you can't see the army of choreographers, producers, dancers, stylists, make-up artists, costumers, and designers that got into creating "Lady Gaga - the brand image", let alone the nameless, faceless lawyers, business managers, accountants, marketing execs, advertising personnel and other non-creative types that have to put the Gaga brand in play.

And to think that the days of Germans getting information all backwards and being misled were a thing of the past...


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