We spend more of our time listening to music than we do watching TV. So why are marketers still so reliant on TV and so few using music as a marketing platform?
Whilst there’s a lot of negative press about the ‘decline’ and ‘downturn’ of the music industry, with artists and labels witnessing a fall in revenue, behind the headlines it’s anything but bad news. The introduction of streaming and the shift of artists’ focus from record sales to live means that more music is being consumed than ever before.
IFPI (which represents the global recording industry) recently published their annual report outlining a total growth of 3.2% to $15.0 billion for recorded music, partly due to a 45% streaming growth with subscription revenue (excluding revenue from some services’ free tiers) jumping $58.9 million to $2 billion, with subscribers growing 66% to 68 million.
The Album Equivalent Sales (AES) industry metric, which measures the volume of music sales combined with streamed audio continues to rise – from the last numbers released, these are up 3.7% from 117.2m albums in 2014 to 121.6m in 2015 in the UK. And the retail value of the UK recorded music market is up 3.5% to £1.06bn in 2015, from the previous year’s £1.02bn.
Whilst we’re always-on, always-connected, we’ve also never been more into the visceral, immersive, analogue experience of a live show. QED: LiveNation, the largest live entertainment company in the world, just posted a record year in 2015, with revenues up 11% to $7.6 billion.
The Nielsen annual Music 360° report shows that 93% of the American population listens to music, spending more than 25 hours each week ‘jamming out’ to their favourite tunes. In fact, 75% of Americans say they actively choose to listen to music, which is more than they claim to actively choose to watch TV (73%). According to The Cassandra Report (from our Engine Group sister agency, Deep Focus), what U.S. Millennials aged 14-34 share online are: 1) Pictures 57%, 2) Music 43%, 3) Videos 43%, 4) Status updates 38%, 5) Jokes 32%, 6) News articles 28%, 7) Memes 25%, 8) GIFs 21%. Clearly the reason why Facebook recently introduced ‘Music Stories’ its music sharing capability, is to deal with the #2 most shared commodity – Music.
So we spend more of our time listening to music than we do watching TV and share more music than videos. So why are marketers still so addicted to TV ads, when it’s way more likely that their target market is listening to music – especially the world’s two billion Millennials, for whom music is one of the main passion points?
Having personally spent many years talking to senior marketers across many blue-chip brands of the world, one tends to hear similar needs from them all – usually including the need for passion, emotion, connectivity with a demographic and, of course, shareable/viral content. Music is content and comes pre-loaded with all of the above. The lyrics are storytelling and the melody engaging on an emotional level – music can make you laugh and cry…and everything in between.
Music is one of the most shared and recommended commodities online. It’s the most spoken about social conversation, and it fuels the biggest social media sites out there. It simply isn’t being used efficiently and effectively by most brands. Nor is it fully understood. The issue brands have is that active involvement in music is perceived to be both complex and costly – not helped by the traditional historical approach of the music industry, who have seen brands as a cash-cow.
Many brands have had painful experiences and traditionally ROI has been low due to the tactical, one-off approach many brands have adopted. Additionally, with the array of rostered agencies surrounding brands, there has often not been a custodian of the brand in place responsible for controlling the ‘sound of the brand’. The ad agency creating a film for an ad is generally tasked with thinking about what piece of music might bring the film they create to life from a creative standpoint, not always with planning at the heart. Putting it in a brand campaign is only one tiny part of how a brand can use music, yet this is still what many brand marketers consider as ‘being involved in music’. For what really being ‘involved in music’ should look like, brands should take a leaf out of the sports marketers’ playbook – a playbook that at its best eschews tactical one-offs in favour of long-term partnerships with events, teams and athletes.
What is so different in music? Why is there is there so little long-term, platform-based planning going into music and entertainment? Take Red Bull as an example. Dietrich Mateschitz’s love and belief for extreme sports has led the business to truly ‘own’ that space, to the point of becoming a major owner of extreme sports content. Why not take Red Bull’s best practice approach to sports and apply it to music? When will marketers talking about ‘content being king’ start taking music on-board on a more serious basis as part of their content strategy?
Brands that get this right will find themselves embedded at a deeper, emotive and instinctual level with their audiences. Surely music to any marketing director’s ears…
We discussed Millennials and the power of music as part of brands’ marketing strategy at our Synergy Entertainment event, ‘Talkin’ About A Revolution’, which was held at Spotify HQ, London in April. Our panel included Emmy Lovell (VP Digital, Warner Music), Joey Swarbrick (Manager Rizzle Kicks), Lisa Buchan (Director Music & Culture at Monster Energy), Mark Sutherland (Editor of Music Week), Simon Burke-Kennedy (Manager of Professor Green) and Tom Kitchen (Spotify). The event was a huge success and edits from the panel will be posted shortly.
For any further information about Synergy Entertainment and how we help brands navigate and deliver solutions in music, please contact: firstname.lastname@example.org