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Are you still watching? Measurement in the streaming app era

According to a Forbes report, Americans spend an average of $46 monthly on streaming services. An incredible 99 percent of US households subscribe to at least one or more streaming services, with Netflix, Amazon Prime Video, and Apple TV+ topping the list. 

There’s no doubt that the streaming revolution is here to stay, but as costs rise and the market grows more competitive, users are becoming quicker to cancel.   

Jason Hicks, GM of Measurement Solutions at Kochava, and Jessica Dudley, VP Analytics and Operations, Liftoff, argue that activating your data, designing effective ads, and running successful acquisition campaigns for streaming services can be a vastly complex and intricate process without the right expertise. Getting it right however, can unlock the secret to retaining your users longer. 

Hicks explained: “Streaming services in today’s market have a vast wealth of data to collect and understand. Apps are available across a fragmented ecosystem of mobile, connected TV (CTV), gaming consoles, and other connected devices. Today’s users are represented by an array of linked devices; a campaign on mobile may drive outcomes on CTV or web, just as a CTV campaign can drive conversions in your mobile app. Making sense of all of this is no easy feat.” 

Below, Jason and Jessica outline five top tips for measurement and user acquisition strategies on streaming apps.

1. Measure what matters   

Hicks said: “Wherever your streaming service is available to users, measure it. Any gaps in your measurement strategy will create blind spots and subsequently blur your true understanding of how your growth and engagement campaigns impact user actions. Streaming services measure their apps across mobile, tablet, desktop, gaming console, CTV, and OTT streaming sticks and boxes. 

“For measurement, streaming services can tap into a robust library of software development kits (SDKs) that enable out-of-the-box measurement across connected devices, unifying all of a brand’s streaming app engagement data into a single dashboard.” 

  1. Enable cross-device identity resolution  

Hicks continued: “In the modern world the average consumer interfaces with multiple connected devices across their experience. This means that streaming apps need effective identity resolution, which is the process of combining data from multiple sources to create a single, comprehensive user profile. 

“A user could consume content on their connected TV, mobile device, tablet, computer, gaming console, and more. Referring back to the previous metadata tables, passing a privacy-first user ID within event metadata is an effective way to join user-level engagement data across all touchpoints, rather than viewing engagement in silos by individual devices and platforms.  

“By implementing tools for identity resolution, marketers gain a more holistic view of the user journey to better deliver personalized and relevant content, experiences, products, and services to their customers. It also provides vital intelligence for informing omni-channel marketing strategy.” 

  1. Ensure frictionless registration pathways and easy onboarding.

Dudley said: “Always pay attention to seamless device compatibility. Users may want to sign up on mobile but start streaming on a tablet or on CTV apps. Make the process as easy as possible to ensure a smooth transition.”  

  1. Don’t sleep on mobile re-engagement.

Dudley continued: “Introducing re-engagement campaigns on mobile can encourage churned users to renew or unpause their subscriptions. Especially as user acquisition costs rise sharply in key markets, re-engagement is a proven way to increase revenue without relying exclusively on new users.” 

  1. Run special promotion campaigns for new or top-rated content alongside evergreen campaigns.

Dudley said: “Promotion campaigns can reach niche audiences and re-engage audiences that have churned. Run them alongside evergreen content to have a year-round benchmark for comparison. As an added benefit, you don’t have to touch the winning ad creatives you’ve already optimized for success. If you already run promotions through other channels, consider increasing their reach by adapting your campaigns for mobile.” 

Photo by Mika Baumeister on Unsplash

Subscription economy drives music to new highs in 2021

The global recorded music market grew by 18.5% in 2021, driven by growth in paid subscription streaming, with paid subscription streaming revenues increasing by 21.9% $12.3 billion.

That’s according to according to IFPI, the organisation that represents the recorded music industry worldwide, which says there were 523 million users of paid subscription accounts at the end of 2021.

Total streaming (including both paid subscription and advertising-supported) grew by 24.3% to reach US$16.9 billion, or 65.0% of total global recorded music revenues. In addition to streaming revenues, growth was supported by gains in other areas, including physical formats (+16.1%) and performance rights (+4.0%).

Record companies are working to drive this continuing growth for the broader music ecosystem.  With local teams and expertise around the globe, they invest in local artists and genres and support their development. In high-potential growth markets across Asia, Latin America and Africa, as well as more mature markets, like Europe and North America, labels are putting down deep roots and helping to foster the continued advancement of vibrant and diverse local music ecosystems.

IFPI Chief Executive Frances Moore said: “Around the world, record companies are engaging at a very local level, to support music cultures and bring on the development of emerging music ecosystems – championing local music and creating the opportunities for it to reach a global audience. As more markets mature, they join with and contribute to the rich, globally interconnected music world.

“Consequently, today’s music market is the most competitive in memory. Fans are enjoying more music than ever and in so many different and new ways.  This creates enormous opportunities for artists. Those who choose to partner with a record company, do so to benefit from the support of agile, highly responsive global teams of experts dedicated to helping them achieve creative and commercial success and build their long-term careers.

“As technologies and the online environment continue to evolve and expand, so too do the creative opportunities to share music experiences. From the metaverse, to in-game content, record companies have invested in the people and the technologies to deliver new, highly interactive experiences – adding to the evolving ways for artists to make connections with their fans.”

Growth in the world’s other regions:

Recorded music revenues grew in every region around the world in 2021:

  • Asia grew by 16.1%, with its largest market, Japan, seeing growth of 9.3%. Excluding Japan the region experienced a 24.6% climb in revenues. In a continuing trend, Asia also accounted for a significant share of the global physical revenues (49.6%).
  • Australasia experienced growth of 4.1%. Australia (+3.4%) remained a top 10 market globally and New Zealand saw a rise in streaming revenues push the overall market to growth of 8.2%.
  • Revenues in Europe, the second-largest recorded music region in the world, grew by 15.4%, a steep increase on the prior year’s growth rate of 3.2%. The region’s biggest markets all saw double digit percentage growth: UK (+13.2%), Germany (+12.6%) and France (+11.8%).
  • Latin America saw growth of 31.2% – one of the highest growth rates globally. Streaming accounted for 85.9% of the market, one of the highest proportions in any region.
  • Middle East and North Africa – split out as a separate region in the Global Music Report for the first time – experienced growth of 35.0%; the fastest regional growth rate globally. Streaming was a particularly strong driver in the region, with a 95.3% share of the market.
  • Sub-Saharan Africa – also split out for the first time in IFPI’s reporting – saw revenue growth of 9.6% in 2021, largely driven by streaming. Ad-supported was particularly strong in this region, with revenues from this format growing by 56.4%.
  • The USA & Canada region grew by 22.0% in 2021, outpacing the global growth rate. The USA market alone grew by 22.6% and Canadian recorded music revenues grew by 12.6%.

Download the free Global Music Report 2022 – State of the Industry report (English language) here.

UK entertainment sales driven to new highs by lockdown streaming

Locked down Britain turned to digital music, video and games in record numbers in 2020, increasing entertainment revenues by 16.8% to a record £9.05bn, according to preliminary data compiled by the Entertainment Retailers Association (ERA).   

It was the fastest growth rate since records began, driven above all by digital services, who saw revenues increase by £1.4bn over 2019 to a new high of £7.8bn. 

Digital video services spearheaded by Netflix, Disney+ and Amazon Prime Video increased revenues by a remarkable 37.7% over 2019 while growing music streaming subscriptions saw recorded music revenues score their best result since 2006.

Gaming comfortably retained its lead as the largest of the three sectors, generating sales of more than £4bn for the first time.

Overall more than 80 pence in the pound spent on entertainment now goes to digital services rather than physical formats. Amid generally declining physical formats, vinyl LPs remain the shining exception, increasing sales by 13.3%. 

ERA CEO Kim Bayley said, “If there was ever a year in which we needed entertainment, it was 2020. The trend towards an increasingly digital entertainment market may be long established, but no one could have foreseen this dramatic leap as digital services filled the gap left by shuttered cinemas, concert halls and retail stores. With much of the country shut down, ERA’s members provided a welcome revenue stream for thousands of musicians, actors, directors and countless backroom staff.”