Targeting Opportunities for Digital Music Consumer Segments

January 2012
Targeting Opportunities for Digital
Music Consumer Segments
Table of Contents
• Introduction
• Defining the U.K.’s Music Consumers
• Understanding Key Target Segments
• Music Discovery Sources & Behaviors
• Concluding Thoughts
Introduction
To gain a new understanding of today’s digital music consumer segments, eMusic recently
conducted qualitative and quantitative consumer research with Insight Strategy Group.
This white paper unveils the new U.K. music consumer segments. It takes a deep dive into the
attitudinal and behavioral profiles of digital music consumers and reveals key insights for
targeting them.
Research was conducted in December 2011 with a study base of adult online music purchasers
in the U.K. (aged 18–64).
In this white paper, we also compare U.K. consumers with U.S. online-music consumers (aged
18–64). U.S. consumer segments were defined through research conducted by Insight Strategy
Group in March 2011.
Defining the U.K.’s Online Music Consumer Segments
How Segments Were Created
To create the most accurate representation of the consumer landscape, adult online music
purchasers in the U.K. were segmented along two axes—their involvement and taste in
music—which creates four main quadrants.
MORE INVOLVED
Highly Involved, More Mainstream
Highly Involved, More Niche
MAINSTREAM
OFFBEAT
Less Involved, More Mainstream
Less Involved, More Niche
LESS INVOLVED
Defining Involvement & Taste in Music
A consumers’ “Involvement” and “Taste in Music” was defined through a statistical analysis of consumers’
attitudes and behaviors around music.
•More Involved consumers are “Leaders” who are more emotionally involved in music.
•Less Involved consumers are “Followers” who are less emotionally involved in music.
•Mainstream consumers are drawn to more popular music.
•Independent consumers are drawn to more niche, offbeat music.
5 Digital Music Consumer Segments
Using this segmentation, five types of digital music consumers emerged in the U.K.: Mainstream Leaders,
Mainstream Followers, Independent Leaders, Independent Followers, and Omnivores.
MORE INVOLVED
Mainstream
Leaders
Omnivores
Independent
Leaders
MAINSTREAM
OFFBEAT
Mainstream
Followers
Independent
Followers
LESS INVOLVED
How Do U.K. Consumer Segments Compare With U.S. Consumer Segments?
Through previous research, we’ve found that the same consumer segments also exist in the U.S. marketplace.
While U.K. music consumers have some differences in behavior, they are generally driven by similar needs.
Omnivores
Independent
Leaders
Independent
Followers
Mainstream
Leaders
Mainstream
Followers
Comparing Each Segment Size
The size of each group is based on the total number of online music purchasers in that country. Notably, the
Follower segments are more evenly distributed in the U.S. population. The U.K. Mainstream Follower group
is larger than corresponding U.S. group. A qualitative interpretation points to the fact that what constitutes
“mainstream” music is broader in the U.K.
The Independent Leader group is referred to as Cultural Independents, as further review of this segment
shows that their lifestyle, not just their music style, is independent.
Omnivores
Cultural
Independents
Independent
Followers
Mainstream
Leaders
Mainstream
Followers
Understanding the Online Music Consumer Segments
Understanding Cultural Independents
Cultural Independents are passionate, knowledgeable music fans with independent taste.
Key statistics on their behavior:
• 93% consider their tastes to be offbeat
• 85% feel most themselves when listening to music
• 84% consider themselves passionate about music
• 72% consider themselves to be very creative
This Leader group of consumers goes against the grain. They like to listen to music that other people don’t
know about. 94% of Independent Leaders say most of the music they listen to is not on popular radio.
Understanding Independent Followers
Independent Followers are less engaged, casual music fans with independent tastes.
Key statistics on their behavior:
• 77% enjoy music without thinking about it too much
• 27% always actively seeking out music
• 15% know about the latest cultural trends
• 12% consider themselves to be artists
Generally, Independent Followers are appreciative of music but not passionate about it. They tend not
to discover music on their own, because it’s not top of mind for them.
Understanding Mainstream Leaders
Mainstream Leaders are pop culturists who are passionate about popular music.
A few key statistics on their behavior:
• 63% watch the most popular movies and TV shows
• 63% when looking for a song, always end up exploring many other songs
• 55% usually love the most popular songs on the radio
• 41% are always actively seeking out music
These consumers tend to know every song that’s popular and are leaders when it comes to knowing
about pop music.
Understanding Mainstream Followers
Mainstream Followers are loosely engaged with somewhat ambivalent music tastes.
A few key statistics on their behavior:
• 70% like to blend in and not stand out from the crowd
• 58% love the most popular songs on the radio
• 56% care a lot about what other people think about them
• 32% always actively seeking out music
The consumers who make up this group tend to just like the music that other people like.
While they appreciate music, they are not passionate about it.
Understanding Omnivores
Omnivores are very active music purchasers, but they are not loyal. They like,
want, and purchase everything.
A few key statistics on their behavior:
• 94% are always actively seeking out music
• 88% are passionate about music
• 86% feel very “in-the-know” when they recommend music
• 77% usually love the most popular songs on the radio
This is a consumer group that generally consumes every type of genre, but they don’t stay
loyal to anything. They have indiscriminate taste and are extremely involved.
What Is the Best Segment to Target?
The Mainstream Leader and Cultural Independents (Independent Leader) groups represent
significant opportunities for digital music services in the U.K. and in the U.S. These consumers
tend to be the “tastemakers” within social circles.
By targeting one of the leader groups, a brand would not alienate the neighboring group. For
example, by crafting a marketing strategy around Mainstream Leaders you would also attract a
portion of the Omnivore group.
Omnivores also represent a significant targeting opportunity. They are a particularly hard group
to target, since they are not loyal. They are hard to track and build communications for.
As the marketplace becomes increasingly overcrowded, crafting the right consumer-targeting
strategy becomes more important for players in the music industry.
eMusic, for instance, has defined its U.S. and U.K. target-consumer segment as the freethinking Cultural Independents. This targeting strategy could also attract the active Omnivores
and the easily influenced Independent Followers.
Music Discovery Behaviors & Sources
How Are Consumers Discovering Music Across Segments?
While the frequency of discovery—defined as exploring, learning, and finding out about new music—
varies across segments, a few sources stand out for all groups.
Radio is a leading discovery source; it is a trusted authority and provides curation. YouTube provides a greater
degree of control in the discovery process.
Radio
TV or
Movies
Your Mates /
Friends
YouTube
Facebook
*Percentages based on general-population responses indicating that they discover new music through that source at least twice a month.
How do U.K. & U.S. Music Discovery Behaviors Differ?
U.S. consumers take a slightly more active approach to music discovery than those in the U.K.
66% of the U.S. sample base are “always actively seeking out new music,” as compared to 58%
of the U.K. sample base.
Within the different segments, music discovery behaviors vary from region to region.
For example, Independent Leaders in the U.S. visit artists’ official websites more than their U.K.
counterparts or any other segment, feeling that they’re going directly to the source of the music.
40% of U.S. Independent Leaders discover music through artists’ websites at least twice a month,
compared to 27% of U.K. Independent Leaders.
The behaviors of U.K. Omnivores are more closely aligned with that of the U.K. Cultural
Independents than the corresponding U.S. groups.
U.K. Omnivores are active in seeking out and discovering music that is new to them and tend to
try many different sources. Case in point, 18% of U.K. Omnivores have used eMusic in the past,
as compared to only 3% of U.K. Cultural Independents.
Concluding Thoughts
Five Online Music Consumer Segments Defined in the U.K. & U.S.
Consumer research proves that music is a universal passion.
Digital music consumers fall into similar attitudinal and behavioral profiles in both countries.
Consumer segments are not, and should not, be determined only by a consumers taste in
music, but also by how active they are in seeking out, discovering, and purchasing music online.
While U.K. music consumers have some differences in behavior—such as how active they are in
discovering new music—this research shows that they are driven by similar needs.
Research Conducted by eMusic and Insight Strategy Group
eMusic is a unique discovery-and-download destination for music enthusiasts. eMusic Members sign up for a
monthly subscription that allows them to discover, download, and own music. eMusic also sells downloadable
audio books.
Headquartered in New York City with an office in London, eMusic is available in the U.S., U.K., Canada, the
E.U., Norway, and Switzerland. eMusic works with the four major record labels in the U.S. and a majority of
independent-music labels, including Anti-, Epitaph, ATO, Barsuk, Concord Music, Daptone, Kill Rock Stars,
Naxos, Secretly Canadian, Stones Throw, Sub Pop, Yep Roc, and many more. In the E.U., eMusic works with
independent labels. Find more information at www.eMusic.com.
Insight Strategy Group is an independent, third-party qualitative and quantitative research firm. Insight Strategy
Group is headquartered in New York City. Find more information at www.InsightStrategyGroup.com.
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