Advertising Age: GroupM: Mobile Music Streaming Represents $220 Million Ad Opportunity

By Kate Kaye, Ad Age

Content streaming, particularly music listening, can be used as a proxy for other consumer behavior, and companies like Spotify and GroupM are aiming to profit from that. As part of a multi-year data and research partnership between GroupM parent WPP and Spotify, the firms came together to study streaming media consumption. Their finding is that more than 60% of streaming activity is done via mobile devices, and much of it can be linked to "moods and moments."

Ultimately, GroupM expects these streaming mobile activities to translate into entirely new budgets for ad spending. The company estimates that in the coming few years, ads aimed specifically at people based on the fact that they're at the gym, in the shower or cooking dinner while listening to music – that is, exhibiting "moods" or engaged in particular "moments" -- will account for $220 million in new ad revenue in the seven markets surveyed.

The estimate accounts for this type of targeting in all streaming platforms, not just Spotify. The companies studied streamers in Australia, Canada, France, Germany, the U.S., the U.K. and Sweden.

"We're really trying to illustrate what we think are the new advertising moments, so these aren't substitutions of one media for another," said Simeon Duckworth, head of data and analytics strategic development at GroupM. "Moods and moments" is a general targeting opportunity that can be recognized across multiple media, "not just Spotify and not just streaming," he added. "The advantage of the WPP partnership with Spotify is that we can access and operationalize the data to realize this opportunity."

In practice, the data might influence advertisers to target specific messages to someone doing housework or cooking, which could be signaled because a music playlist is accessed through a home streaming device, for example. A workout playlist or stream of upbeat music by a fitness enthusiast throughout the week around the same time could indicate that the person is out for a run or on a cardio machine, thus prompting different ad messages.

 For the full article, visit Advertising Age.

Posted on December 29, 2016 .