The State of Music Advertising in 2023

Many technological strides have reshaped the world of music marketing this past year, and this report from the Ads team at Sony’s indie distribution powerhouse, The Orchard, summarizes the current state of music advertising and what we can expect in the near future.

from THE ORCHARD ADS TEAM

Consumption Trends

Knowing your target audience, how to communicate with them, and where to communicate with them is crucial when it comes to advertising and marketing. As of January 2022, it was reported that the average person spends about 6 hours and 58 minutes on the internet daily. With so many different platforms to advertise on, it can be difficult to identify which platform will best reach your audience. These consumption trends can help you build your strategy.

Of their time spent on the internet, it’s estimated that the average person spends about 1 hour and 33 minutes daily listening to music streaming services, 2 hours and 27 minutes on social media, 55 minutes listening to podcasts, as well as 1 hour and 12 minutes gaming. 

Social media users also reported spending the most time per month on YouTube, totaling 23.7 hrs/per month. While the largest group of users is being drawn from the 25-34 age range, YouTube has a prominent user base across all generations – even children. 80% of parents say that their children (under 11) watch YouTube. Given this massive audience, it’s no surprise that YouTube advertising remains a consistently efficient view-driver for artists’ music on the platform.

TikTok is another rapidly growing platform that is popular among the younger generations, with the majority of their users falling between the 18-24 age range. The short-form video platform’s algorithmic ‘For You Page’ (FYP) serves as an endless variety of content catered to each user, making it an easy platform to spend a lot of time on. 2022 research showed that the average users spend approximately 19.6 hours on TikTok each month. It’s also reported that a massive 84% of TikTok users also use Instagram. Based on its global advertising audience reach numbers, Instagram has at least 1.4 billion users around the world as of July 2022, with the largest audience size between the ages of 18-34.  

In the world of audio streaming, 39.6% of internet users reported that they listen to music streaming services each week. Beyond music streaming, 22.9% of users report to be tuning in to online radio shows/stations, 20.4% listen to podcasts, and 20.3% listen to audiobooks.

Short Form Video Platforms

TikTok was the most downloaded app in 2019, 2020, and 2021. With its explosive growth during the COVID-19 pandemic, TikTok joined and dominated the list of growing short-form video platforms, such as Instagram Stories, Instagram Reels, Snapchat subscriptions, etc.

Short-form, user-generated content platforms allow people and brands to display their personalities and interact with users. With algorithmically-based feeds, short-form platforms allow users with small followings to reach larger audiences through just one video. Whether it’s a short story-time video, creating or jumping in on a viral dance trend, or just a comedic video from your camera roll, all users have a chance to grow their online presence.

What this means for advertising:

When it comes to online advertising, it can be difficult to break through the noise and capture users’ attention given the volume of content users come across each day. However, with endless creative routes to explore and ever-changing trends, short-form content platforms offer a unique way for advertisers to align with their target audiences. When done right, ads on these platforms can come across as natural to the user and fit seamlessly within their feeds, timelines, and ‘For You’ pages. 
As these platforms continue to grow, advertising opportunities evolve and new placement types roll out. For example, TikTok recently introduced super likes and countdown stickers, which provide a more interactive element to the typical advertisement.

What this means for artists:

According to a 2022 Spotify study, 48% of Gen Z survey respondents in the US said that they are likely to follow a music creator on social media after listening to them. TikTok has become a huge platform for music discovery, with both established and rising artists using the platform to foster fan-creator relationships and reach new audiences. 
Many rising artists turn to TikTok to share their talents and their songwriting skills by posting short teasers of new songs, acoustic videos, behind the scenes footage, etc. These native posts can then be boosted through paid advertising to reach a larger audience and encourage users to pre-save, stream, or follow for more content.

Not only do these social platforms allow users to discover new music and interact with new artists on the platform, but they also give the opportunity for older music to resurface through viral moments. Trending TikTok sounds have become a massive driver for catalog consumption. For example, the organic Wheatus’ 2000 hit “Teenage Dirtbag” viral trend.

Depending on the artist’s strategy, we can utilize unique placements for promotions to give users a more interactive and customized experience. Examples include, catalog ads to sell merchandise or display the artist’s top hits, a super like placement to engage fans, countdowns to the release date, etc.

AR / VR Experiences

​​Augmented Reality (AR)

Augmented reality (AR) is a technology that uses a smartphone camera to overlay graphics, allowing users to interact with digital content in the real world. This includes Snapchat lenses, Instagram filters, and try-on features on shopping sites. The use of AR within marketing strategies has become increasingly common over the past few years, and there are thousands of tools to help users create and share their own AR experiences.

What this means for advertising:

Tying into the trend of user generated content and creating ads that seamlessly fit into the user’s experience on platform, AR technology allows brands to create interactive and memorable experiences for their audiences. Check out these examples of how brands have integrated AR technology into their advertising and marketing strategies.

What this means for artists:

For artists, this is a unique way to promote new music and engage with their fanbase. These filters and lenses create exciting and unique experiences for fans. Not only does this drive fan engagement, but it can also drive awareness for non-fans who may stumble across the filter or lense through ads or who find it organically within their feeds.

Virtual Reality (VR)

The Development of the Metaverse

In October 2021, Facebook announced its rebranding to ‘Meta’ and transitioned the company to focus on the future of technology: the metaverse. The concept of the metaverse has been floated around for a while now, but in recent years, the topic has become more prevalent as companies have advanced the technology of virtual reality and cryptocurrencies. 

So what is the Metaverse? The goal of the Metaverse is to drive connection and communication through a digital 3D space where users can remotely immerse themselves into a whole new world. The VR social platform will allow users to create avatars of themselves, meet up virtually, buy and sell, play games, etc. In very simple terms, it is a 3D experience of the internet.

What this means for advertising: 

Similar to the real world, users will come across Metaverse ads in the form of virtual billboards, product placements, sponsored events, audio ads, etc.

When it comes to digital advertising, users tend to engage more with ads that fit seamlessly within their feeds. Understanding the platform and keeping the content native helps advertisers better reach their target audience. For example, taking advantage of the insight that many of his listeners are also interested in gaming, Nas promoted his album, Kings Disease II, across thousands of video games through non–intrusive audio ads. Read more about this here!

What this means for artists:

The Metaverse also opens up another opportunity for customized fan experiences. Music brings people together, and now listeners can experience a new space to immerse themselves in their favorite music and be united with fans from all over the globe. Artists can reach their fanbase through virtual concerts, fan hangouts, exclusive virtual merch drops, and so much more!