Warc Blog

Asian advertisers see prospects in music

10 October 2013
SINGAPORE: Streaming music services are growing across South East Asia, but with listeners reluctant to take out subscriptions there are opportunities for advertisers to reach this group, a new study has suggested.

Effective Measure, a provider of media planning services, surveyed key markets in the region and found that a majority of respondents were not prepared to pay for such music services. Just 17% had an active subscription to a streaming music service that they paid for.

The presence of ads was not a major deterrent to listeners. When questioned on the most important features in a streaming music service, just 25% said they didn't want any advertisements.

Good sound quality was what was most sought after, cited by 42%. Even having a wide selection of music was relatively unimportant, with only 21% referring to this.

But those people spending more than 20 minutes a day listening to their own choice of music were more than twice as likely to pay $30 a year for a streaming music service that promised no ads and good sound quality, along with an app and a large selection of music to suit their tastes.

YouTube was the dominant listening destination, attracting more listeners than radio. Some 78% listened to music on YouTube or an app streaming music from there, while 70% listened to FM radio.

"Digital music streaming services continue to transform the fortunes of the digital content industry with a variety of business models taking shape through Asia," said James Robertson, founder of Effective Measure, adding that the region was fertile ground for innovation.

Robertson also referred to the growing penetration of mobile and high-speed network connectivity, both of which helped make the music streaming model "seamless to use for consumers" and provided "a ripe platform for brands to engage with".

"Being able to monitor advertising engagement across these new platforms is crucial," he concluded.

As well as simply advertising on music streaming sites, a recent Warc Trends Snapshot noted how digital music data was allowing brands to leverage social media and music platforms, such as Spotify, to develop interactive campaigns in order to increase relevance and build emotional engagement with consumers.

Data sourced from Effective Measure; additional content by Warc staff

 
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