Making and Marketing an Artist Streaming Rewrites the Rules, Again
Get full access to this report and assets
Already a MIDiA client? Login here to view this report.
If you are interested this report, or related reports such as "MIDiA Research Music Market Metrics " and "Streaming Music Discovery When The Journey Becomes The Destination" get in touch today to enquire about a report bundle.
The 20,000 Foot View: Marketing is one of the core competencies of record labels. The rise of the internet and social media transformed label marketing strategies. Now streaming is turning everything upside down again. The new challenge this time round is that streaming is both a marketing tool and a revenue source. In the old world, there was a very clear delineation between radio and retail, streaming brings the two together, which can lead to conflicting objectives. For example, labels widely recognise that the streams that free users generate can be crucial in building momentum for a track.
Key findings
- Labels not uniquely identifiable information (UII) from services is the underlying challenge measuring marketing ROI for streaming
- Consumers are shunning ads: skip video ads to of streaming music users use desktop ad blockers)
- Some big agencies have overcharged advertisers for ad campaigns, pocketing the difference rebates from media owners
- Labels spend of their revenue on marketing, to an average of for chip companies
- Generally, most are still album campaigns or the very least built around group of tracks
- Major labels building extensive marketing data capabilities complement their already comprehensive streaming resources
- Record labels a total of billion on in 2017 with of that being spent by majors million) was spent on traditional advertising across TV, Radio, Outdoor and Magazine
- Labels spent digital marketing spend on YouTube 2017, totalling million
- In 2016, spent on YouTube marketing for of video streams revenue
- In 2018 marketing spend will tip over digital, up from million) in
- Warner Music 2017 artist and repertoire costs million while royalties to be within one year were million
- For an major label artist that generates in revenue, artist advance would production costs and artist royalties
- The forthcoming GDPR regulations are the storm the horizon for marketing data any company with European customers
Companies and brands mentioned in this report: ADA, Apple Music, AppsFlyer, AWAL, BMG, Chartmetric, Facebook, Instagram, Kobalt, Pandora, Platoon, Pledge Music, Spotify, Stormzy, United Masters, Warner Music Group, YouTube