It's sound for artists to put mouths where money is

HIS will makes it clear that the late Beastie Boy Adam Yauch's antipathy to his music being used in advertising extends beyond the grave. However, that attitude is becoming more out of fashion, not least in Australia where, while the likes of Missy Higgins and Gotye are adamant in saying no to ads, Paul Kelly and Kev Carmody have bent with the wind.

By InvestSMART · 16 Aug 2012

By InvestSMART ·
16 Aug 2012

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Just ask Sydney band Winter People, who can afford to release their debut album next month, thanks to a European TV ad for Mercedes-Benz. The six-figure fee the Germans paid to use the song Wishingbone allowed the band to finance the album.

That was something that "certainly lent some weight to the band when we started talking to potential partners around the world", the band's manager, Troy Barrott, said.

Barrott, who also manages Megan Washington and Dappled Cities, argues that there is not the same stigma about advertising dollars today.

That is partly generational for, as one prominent manager put it, "I suspect most younger people actually see everything as marketing music, politics, sex so they don't judge you on whether you're marketing, they judge you on whether you're marketing well."

"Every one of my clients is steadfastly protective [of their work], intellectual and caring while being open-minded to exploring opportunities," Barrott said.

It's not open slather, though. While Kelly and Carmody agreed to license From Little Things Big Things Grow for a superannuation fund as it was a non-profit organisation looking after union money, they would not allow the original recording to be used.

Still, when people are not buying as much music and so little income is derived by musicians "there can't be frustration or guilt as a result of earning a living", said Alex Cameron of the electronic band Seekae, whose song Herodotus has been the soundtrack to a car ad.

"There are boundaries that we wouldn't cross certainly promoting a product with your music needs to be the result of a considered decision. But on most days, we need the money," Cameron said. "It can also be a good way of extending the life of your music."

Certainly the life of Alex Lloyd's ARIA-winning song Amazing has extended beyond his local career after being licensed for at least three separate ad campaigns.

Brisbane's Kate Miller-Heidke helped pay for months of international touring from the proceeds of a song from a mostly ignored side-project she released last year. That song Are You Ready? has been used to advertise New York lotteries, Target stores in the US, and a British DVD rental chain. And on Tuesday, a new pitch was received by her manager.

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Frequently Asked Questions about this Article…

Why are more musicians agreeing to music licensing for advertising and commercials?

Many artists now view music licensing for advertising as a practical revenue stream because record sales have fallen. The article cites examples — Winter People earned a six-figure fee from a Mercedes‑Benz TV ad that funded their debut album, and Seekae’s Alex Cameron said licensing can help musicians earn a living and extend the life of their music.

How can advertising fees from music licensing affect a band’s finances?

Advertising fees can provide substantial, sometimes one-off capital that helps fund projects. For example, Winter People used the six-figure European TV ad fee to finance releasing their debut album, and Kate Miller‑Heidke paid for months of international touring from licensing income.

Do artists face stigma for letting their songs be used in ads?

Attitudes are shifting. While some artists (the article mentions Missy Higgins and Gotye) remain opposed to ads, others like Paul Kelly and Kev Carmody have licensed songs selectively. Managers argue younger audiences see marketing differently and judge how well artists market themselves rather than whether they do it at all.

Are there common boundaries artists set when licensing music to companies or campaigns?

Yes. Artists often protect their work and set limits on commercial use. The article notes Kelly and Carmody allowed a song to be used for a non‑profit superannuation fund but refused permission to use the original recording, and Seekae’s Alex Cameron said licensing decisions should be considered and not cross certain lines.

Can music licensing extend the life and reach of a song?

Yes. The article gives several examples: Alex Lloyd’s song 'Amazing' was licensed for at least three separate ad campaigns, and Kate Miller‑Heidke’s side‑project song 'Are You Ready?' found new audiences through ads for New York lotteries, Target in the US, and a British DVD rental chain.

What role do managers play in negotiating advertising deals for musicians?

Managers can help balance protecting artists’ intellectual property with commercial opportunities. Troy Barrott, who manages Winter People and other acts, said being open‑minded about deals while staying protective of work helped secure opportunities — including a large Mercedes‑Benz fee that boosted the band’s prospects.

Are there examples of artists using ad income to grow their careers rather than ‘sell out’?

Yes. Several examples in the article show licensing used to grow careers: Winter People funded their debut album, Kate Miller‑Heidke financed international touring, and Alex Lloyd’s track enjoyed renewed exposure. Artists in these cases treated deals as a way to support their music and reach new listeners.

What should everyday investors know about music licensing as an income source for artists?

Music licensing is an increasingly important revenue channel for artists as traditional music sales decline. Licensing can provide lucrative one‑off payments, ongoing exposure for songs, and help sustain touring and releases — but artists also weigh ethical and brand considerations when choosing which ads to accept.