NDM: Weekly News Article - W/C 2nd January (33)

GroupM: Mobile Music Streaming Represents $220 Million Ad Opportunity

http://adage.com/article/datadriven-marketing/groupm-sees-mobile-music-streaming-untapped-ad-spend/307321/

Summary

Content streaming particularly music listening can be used as a proxy for other consumer behavior. Companies like Spotify and GroupM are aiming to profit from that. As part of a huge research project between GroupM parent company WPP and Spotify researching media consumption they found that a lot of consumption is done via mobile phone. GroupM expects these streaming mobile activities to translate into money a budget for ad spending. GroupM estimates that in the coming few years ad's aimed at people based on what they are doing for instance shopping or in the gym while listening to music, exhibits moods or engaging in particular moments will account for new ad revenue. 

Key Statistics

• More than 60% of streaming activity is done via mobile devices
• Tailoring ad's based on what people are doing will account for $220 million in new ad revenue in the seven markets surveyed. 
• According to partners Streaming State of Mind study about 53% of mobile music streamers said they listen to music while doing housework,42% while cooking, 30% while showering, 20% while running errands.

My Opinion

Currently, adverts are the core source of finance for a wide multitude of companies for instance, the newspaper industry. I think that they are a good source of finance for the companies because businesses will pay above and beyond to get the name of their business out there. However, getting the business name out there through paying above and beyond does not matter because in the majority we use ad blocking software to stop seeing the adverts on our screens or we simply just ignore them and close them if possible. So, tailoring the ad's to suit what people are doing is a good way to go to make them a viable source of revenue, expect that raises the question of exactly how music companies are going to constantly know what activities we are doing; is it a invasion of our privacy? or will they find out simply by carrying out regular customer services or through cookies on the app or browser.