Nielsen At SXSW: Talking Digital And Radio Discovery
March 13, 2014 at 3:56 AM (PT)
NIELSEN went to this year's SXSW in AUSTIN to present “THE INSIGHTS EVOLUTION: WHY ONLY OBSESSING ABOUT SALES IS HOLDING YOU BACK,” which focused on the benefits of building awareness through web/social activity; driving discovery through radio and streaming; and maximizing sales through radio and TV for new song releases in today’s digital world.
“Digital consumption has reached the masses, with a majority of consumers in the U.S. streaming music last year,” NIELSEN SVP/Client Development & Industry Insights DAVID BAKULA said. “The change in consumption requires us to continually evolve how we measure and define success.”
NIELSEN offered the following data points:
- In 2013, 68% of U.S. consumers streamed music (includes YOUTUBE music videos)
- Music listening via streaming services increased 40% from 2012 to 2013.
- Consumers who streamed music via paid streaming services rose from 4.2% to 4.9%
- Consumers who streamed music via free streaming services rose from 26.8% to 38.6%
- 56% of respondents listened to music on the car radio in a typical week; 53% listened to music on their mobile devices during the same period
- 67% of respondents listened to music on the car radio within a 12-month period; 69% listened to music on mobile devices during the same period; 72% listened to music on their desktop or laptop computer during the same period
NIELSEN also found that in many cases, web/social activity before the release of a song drives awareness, contributing to first-week sales and consumer activity.
- Radio can be a vital driver of On-Demand streaming and sales.
- The first 8 to 12 weeks of a new release can present the best opportunity for TV and other exposure.
- Around week 12, consumption typically reaches its peak.
- After 12 weeks, artists should look for crossover opportunities to engage new audiences as consumption starts to decline.
- In the long term, streaming presents the opportunity to lengthen monetization opportunities.
“Understanding how touch-points work both independently and interdependently in driving commercial success for artists is the cornerstone of commercial growth for the industry," NIELSEN SVP/Insights and Analytics JULANNE SCHIFFER said. "The journey may be unique for different songs, artists and genres, but maximizing consumer engagement across various channels from pre-release through to commercial peak in week 12 is the common denominator."