In India, although music streaming increased exponentially during the pandemic, money generated from ad-supported listening far outweighs revenue garnered from subscriptions. As of February 2021, media measurement and analytics company Comscore reported a 15% growth in overall users as compared to January 2020. According to the latest reportby Federation of Indian Chambers of Commerce & Industry (FICCI) and Ernst & Young, “The Indian Music segment grew 8.3% to reach INR 15.3 billion in 2019 and is expected to grow at a CAGR of 10% to cross INR 20 billion by 2022. Music consumption in India is about an average of 19.1 hours a week and it is said to be higher than the rest of the world which is 18 hours a week.”
This festive season, streaming platforms are geared towards ad revenue from marketers hoping to tap into consumers who laid low during the pandemic. Spotify claims that approximately one in three users on their platform are “looking at large, big-ticket purchases in a clear case of revenge shopping. And this is a user base that is likely to spend 15% more on what they want than any other cohort”.
On average, the Indian music enthusiast spends 2.5 hours per day on audio and 80% captured by visual media. Streaming music has been the premiere activity people turned to during the lockdown. “And with connected devices adoption booming, the portability of audio (car, watch, Smart TV, game console, home speakers) means that marketers have ways to reach their audience in key screenless moments, when they otherwise can’t,” said Spotify in a public post.
Daily festive streams have increased by 63% from November 2020, and occasion and activity-based streams grew 155% in December 2020.
Furthermore, there’s been a massive 441% increase in user-generated cooking/dinner playlists, while there’s a been a spike of 290% for nostalgia streams, and 590% for home (and homesick) playlists.
Spotify data reveals that running both video and audio increases ad recall by 90% and results in a 2.2x increase in brand awareness. The company is hoping to connect brands with consumers with the most accurate form of advertising.
They’re hoping to encourage co-branded digital experiences around festive or shopping wishlists with multiple branded playlists and creative audio to amplify a brand’s in-store experience.
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