In some ways Spotify, Pandora and other streaming platforms are just the latest evolution in how consumers enjoy their favorite music.
However, unlike their predecessors such as cassettes, CDs and even MP3s, streaming services are compiling huge amounts of real time data about users and their consumption patterns.
Unlike cassettes and CD’s, streaming services are building relationships directly with the audience and are seeking to grow consumption and build loyalty.
In addition, unlike the B side of an album that only the most diehard fan enjoys listening to, playlists and algorithms serve up a customized, personal listening experience.
In addition, data consumption, which until very recently was a barrier to unlimited streaming on smart phones, is quickly going away with ubiquitous wi-fi hot spots and carriers like T-Mobile providing unlimited data for streaming.
In a recent article by John Seabrook in The New Yorker, Spotify CEO Daniel Ek notes, “In tech terms, we’ve gone from a world of scarcity to one of abundance… you can’t beat technology. Technology always wins.”
Streamers like Spotify have distilled day parts into “moments” and according to Ek, “We’re not in the music space – we’re in the moment space.”
In order to mine more user data, Spotify recently bought the Echo Nest and as a result, now knows, “what time of day users listen to certain songs, and in many cases their location, so programmers can infer what they are probably doing – studying, exercising, driving to work … programmers also hope to learn more about listeners by factoring in data such as what the weather is like, what your relationship status is now on Facebook.”
According to Brian Whitman co-founder of the Echo Nest, “We’ve cracked the nut as far as knowing as much about the music as we possibly can automatically, and we see the next frontier as knowing as much as we possibly can about the listener.”
It’s important to take note of that comment. After all, most stations have little knowledge about the individual members of their audience beyond aggregate numbers such as the station having 25,000 email addresses or 50,000 Facebook Likes. However, radio is no longer just competing with other local stations, but up and down the Infinite Dial and for companies like Spotify, Big Data is in their DNA.
Local Insights Trump Big Data
Big Data helps Spotify and others aggregate and track millions of user records, but that’s not a competitive advantage over local radio, it’s actually a disadvantage. Streaming services are trying to replicate and establish the type of relationships that radio has with its audience.
The opportunity exists with station level data analytics for radio to literally get to know their best listeners by name and treat them accordingly.
Think about how easy it is to identify your biggest advertisers by name. Shouldn’t the same be true for your best listeners?
Consider the people who win your contests. Many of them live in Nielsen households, yet when they come to pick up their prize, do you treat them like Panelists and Diary Keepers or Contest Pigs? For most stations, it’s a missed opportunity. In fact, read more about the need to kill off Contest Pigs once and for all.
Do you know the names of the people who are so passionate about your brand that they engage across multiple platforms such as text, email and Facebook? Breaking down these data silos and getting to know those who matter most by name is critically important.
Do you know the names of your loyal listeners who each day convince their entire office to listen to your station instead of changing the channel or streaming someone’s favorite playlist?
Most importantly, do you know the names of your audience members who amplify your brand and share with their friends, family members and co-workers via Word-of-Mouth?
DMR/Interactive has long been an advocate and practitioner of using data analytics to recruit and engage those who matter most. The ability to provide the exact names and contact information for a station’s best fans creates a true competitive advantage for our clients, not only with ratings, but also for their sales departments.
Here’s a quick test … if you wanted your morning show to mail out 100 Christmas cards to your very best listeners, could they do it?
Learn how DMR/Interactive maximizes your ROI and strengthens the relationship between you and your Super Fans.
For more information on our 2015 market availability or to schedule a meeting, contact Andrew Curran, President and COO at DMR/Interactive.