Analysing marketing in the music industry

Music’s impact on society is inescapable. It forms a crucial part of culture and society. Yet this impact has changed dramatically in recent years following a revolution in its creation and consumption. The move to digital changed not only the way music can be created, but also the way that it can be made, inspiring millions of new artists.

A few years down the line, the game has changed once again. The number of artists competing for fan attention has increased dramatically, as has the number of possible digital channels to reach them. We’ve comprehensively researched the market to provide crucial insight for any aspiring artist, marketer, entrepreneur, or investor.

Market understanding

Our research illustrates how three societal trends are shaping the way we all experience music. The first is the rise of streaming services and the subscription services they use to make money. These have opened up new revenue opportunities, particularly in emerging markets. Secondly, social media dependence has changed the way listeners and artists connect. This has led to artists sharing more of their lives to demonstrate authenticity and build a fanbase. Finally, these trends have inspired an ever-growing number of fans to become artists in their own right. This has been powered by an ever-growing number of digital creation, publishing and marketing tools.

Marketing strategy

Contrary to popular belief, the digital revolution has increased rather than decreased the revenues of major labels. The industry is still dominated by a small group, whose ability to capitalise on streaming has only increased their fortunes. Despite this, the growth of independent artists has led to the emergence of a number of very successful new businesses and business models.

The revenues of the major labels have allowed them to develop highly sophisticated marketing capabilities that bring together an array of marketing channels to aid the music discovery and consideration process. A feature of this is an ability to develop campaigns of a quality that independent artists struggle to replicate. Major labels also have the budgets available to engage in real-world campaigns.

Conversely, independent artists leverage authenticity by creating very close relationships with their fans. They focus on content creation using social channels that provide a clear and genuine insight into them as an artist.

Marketing activation

The distinct differences in the approaches of artists signed to major labels and independent artists are clearly reflected in the tools/services/agencies they used to increase their success. The major labels employ an array of digital tools, particularly to gain detailed data and insight on an artist's success. They also bring in agencies and agency networks to build global campaigns and draw on specialist skills. This is often a key feature of innovative and award-winning campaigns.

Independent artists have less capital and resources to build campaigns. To counter this, they focus on a select set of digital marketing tools to improve their digital reach and maximise efficiencies. What they lack in clout, they can claw back in efficiency. It isn’t a fair fight, but with the right skills, they can be successful. The major challenge they face is rationalising the marketing process. Many see it as a key part of music creation, whereas others view it as a distraction from the joy of writing and recording.

This research includes

• 12 pages of analysis (4,000 words).

• Evidence-based approach.

• Case study examples and success stories.

• Main tools/services/agencies.

• References for additional reading.

• Published February 2020.

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