Apple Music: brand potential is huge

By AdNews | 23 June 2015
 

Apple Music is set to be a big deal, even despite Taylor Swift's royalties protest, with research by Zenith Optimedia saying its launch will “supercharge” the streaming industry.

Hot on the heels of the launch of Apple Music in the US, ZenithOptimedia surveyed 1000 Australians using a GMI panel to understand the potential impact it might have in the competitive Australian streaming industry.

While it is only in the US now, Apple Music will launch in Australia on 30 June.

Zenith's research found that 65% of 18-34 year olds intend to try Apple Music on launch and of the 43% of 18-34 year olds not currently using a music streaming service, a “whopping” 40% said they would try the Apple service. This suggests it has the ability to grow that young adult demographic from 57% to 74%.

However, while the growth is huge, ZenithOptimedia insights director Luisa Howard said that the potential for brands to unlock that upside is dependent on their ability to enhance the user experience.

“Apple Music will supercharge the growth of the entire streaming category, not only opening up music access for brands, but more excitingly, opening up more innovative and dynamic ways for brands to contribute to a better and more valued consumer music experience,” Howard said.

“Brands that win in the music streaming space will play a role in enhancing the consumer listing experience, not interrupting it.

“Artist/brand collaborations, exclusive access to content, DJ curated playlists, socialised music and ideas yet to be conceived are what will make investment in music successful.”

Howard said she expects a high pace of innovation in the music streaming space over the next few years in order for brands to establish a place in streaming that consumers won't “skip or reject”.

This means that media agencies will need to innovate alongside brands.

“Music's continued migration into the digital world, via streaming, will further unlock the connection opportunity,” Howard said.

“Media agencies will need to house diverse capabilities and foster new collaborations to both imagine and execute music streaming successfully – content creation and curation expertise will be vital.”

“On top of connecting with consumers in the right context of music we will be able to layer in geo-location targeting, digital behaviour targeting and in the future, even sync brand messages across multiple digital platforms, creating highly tailor brand experience.”

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