Mobile music streaming is now a $220 million advertising opportunity
Mobile music streaming now represents a $220m opportunity for advertisers, but it’s not being taken advantage of. That’s according to new research from Spotify and GroupM based on streaming consumption and monetization data.
Overall, 47% of consumers are now streaming some form of content across seven markets measured including US, UK, Canada, France and Australia. The study found that over half of streaming activity is on mobile devices. However, Generation Z is more likely to stream on a weekly basis than other age groups.
Streaming across seven countries
Mood and moments are an important factor for advertisers to consider in order to target audiences more accurately.
According to streamers, listening to music is an all-day, any-time activity with streaming highest during housework (53%), cooking (42%) and chilling (55%).
Rob Norma, CDO for GroupM and chairman of GroupM North America, admits that the opportunity for brands and advertisers is huge since the data provides a good understanding of the individual consumer. He says:
“With streaming data, you don’t just get a basic demographic snapshot, you get to know what songs, artists, and playlists people are listening to – which can help you determine what they’re doing, how they’re feeling, or even what they’re thinking at the exact moment you want to reach them. This level of contextual data could take segmentation to an entirely new level, letting advertisers reach a hyper-specific, targeted audience at key points throughout their day.”
Streamers are largely doing so for reasons of convenience. When it comes to TV and movie options, Netflix, Amazon Prime and Hulu+ dominate the subscription services.
Brands can tap into these opportunities, and with 69% of music streaming now happening on mobile devices, targeting is a vital part of the marketing process.
Alex Underwood, VP and head of global agency & partnerships at Spotify explains that streaming is a more personal experience and as such yields more powerful data.
“That’s another huge reason the future of the industry presents such remarkable opportunities for brands and marketers—it’s a new chance to connect with consumers on an inherently personal, intimate platform.”
The share of Spotify streams grew an average 17% from 2015 to 2016, with Germany seeing the largest growth in streams.
Spotify streams on mobile
“Whether it’s a streamer listening to Drake with noise-cancelling headphones on their commute, or watching the next season of Stranger Things in their bed, streaming provides an entirely new format for users to engage with the media content they want, in the setting of their choice. As a result, marketers have a unique opportunity to reach individuals with direct messaging, tailored specifically to the person streaming and the context they’re in.”