Music consumption is growing exponentially. More than 90% of Americans are spending 20+ hours per week listening to music. This is sure to be a big year for all in the music industry, and developing a solid strategy will help you and your artists stay ahead of the curve. Competition will be fierce in 2016, with more streaming services and consumption platforms being released all the time. The most success will be had by those using data-driven strategies to market their music to savvier consumers. Here are five tips to help you take advantage of data to rock your music strategy in 2016.
- Increase revenue by turning fans into customers: make your music data work for you
In 2016, a data-driven music strategy is going to make all the difference. Your users are, first and foremost, fans of music. If you can harness the data available to you about their likes, patterns, and locations, you can turn those fans into customers of your brand by doing things like:
- Set concerts in the cities where your artists are most listened to, in order to increase revenue from ticket and merchandise sales.
- Revolutionize your merchandising strategy by selling more for top-streamed artists where people are listening to them.
- Reallocate your advertising budget on services to push services/artists that have the biggest potential according to your audience.
- Maximize your reach with strategic partnerships: build your music strategy around users’ interests
Develop a data-driven approach (are we sensing a trend?) to branding. Target your users as consumers, and find out which products and services are trending with specific demographics. Then build partnerships with those brands and your artists in advertising campaigns. An example of this on a grand scale would be Beyonce and Pepsi. While branding partnerships typically had a stigma attached to it for artists, it’s now becoming viewed as a beneficial branding boost to help break new artists, as well as to support existing artists.
- Take advantage of how modern hits are created: use winning formulas in your music strategy
In a culture constantly obsessed with the latest viral video or meme, it comes as no surprise that 90% of music industry revenue comes from 10% of the songs. The way these pop hits are created has evolved since the turn of the century. No longer simple combinations of melody and lyrics, today’s hits are carefully crafted, hook-filled, and packed with chord progressions written to make an impression consciously and subconsciously. These “track and hook” productions have helped create these viral hits. They can almost instantly turn an unknown artist into a celebrity, and will often lead to label deals and profitable tours.
Big data is even being used now in the creation of digital music. Producers and their audio software can use data to measure listeners’ visceral responses to musical compositions and combinations. While it’s been shown that totally automated generation of music yields a product too perfect to be pleasing to human ears, these innovations show that big data is not only changing the way users consume music, but driving the way that music is being created.
- Optimize mobile to attract customers and build community: a wealth of music data at your fingertips
Especially true for streaming services and emerging music consumption platforms, our mobile devices have become one of the primary ways we consume music on a daily basis. The data available to the music industry from the way consumers use their mobile devices is invaluable, and the opportunity for the music industry to engage their customers on a daily basis is rife with possibility. Make sure that your music strategy this year includes offering mobile tools and forums for your listeners to interact with you and with each other, and you’ll keep them engaged with your artists and your brand.
- Use your music data to increase customer retention and boost revenue
Distributors, labels, and industry players are always looking to increase revenues from their existing customers. Customer retention is another area where music data can augment your strategy. If your user comes to your brand for a core service, but you are able to effectively optimize the data you have about him to offer him additional services, he is more likely to return to your platform in the future. The more data you have about your user’s behavior, the better you can market the products he may be interested in, and the easier it becomes to keep him coming back for more.
With competition expanding daily, developing a shrewd music strategy to market your artists and their music in 2016 is more important than ever. Stay on top of the industry trends, use the data available to maximize your marketing efforts, and build a consumer base that you can retain and cater to. From the way hit music is created, to the considerations that fuel marketing strategies for industry insiders, it appears that 2016 will only propel the music industry further into data-driven landscapes.