(From Billboard Magazine, November 6, 2013) According to a recent study, fans of music and live entertainment are more favorable of the brands that are involved in concerts and streaming music services. Streaming services and live events provide brands with an opportunity to engage fans in the awareness of their company. These conclusions are the result of the new 2013 Music 360 report from Nielsen. The latest version of Nielsen’s annual report is from nearly 2,600 online surveys with consumers in the United States.
Around 74% of music streamers connect with brands that engage them through sweepstakes, music giveaways and sponsorships, compared to 58% of non-streamers according to the report. Over two-thirds of U.S. consumers have used an audio streaming service, up 40% from the prior year. The report also found evidence that live events are a good place for sponsorship dollars. Fifty-one percent of U.S. consumers and 76% of festival attendees prefer brands that sponsor a tour or concert. “Event marketing provides a good opportunity to tap into consumers’ passions,” says Marcie Allen, President of MAC Presents, a music marketing company. She believes consumers have become very aware about advertising and react positively to the marketing techniques used in live events, “When it’s a tour or festival, consumers want to touch, feel and experience the brand in an authentic and organic way.”
The results from the survey are good news for digital music services, promoters and venues seeking to capture a larger share of brands’ spending. In addition, not only are music streamers more receptive to brand engagement, they are simply more engaged with music. Music streamers reported spending 54% more on recorded music than non-streamers. With the increasing popularity of streaming music and brand awareness at live events, the music industry and sponsorship companies could see an increase in their revenues for the future.