TATIANA OLIVEIRA SIMONIAN VP, Branded Music

@Tatiana

BIG DATA, BIG OPPORTUNITIES

MUSIC BIZ 2015

#MBbigdata

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HOW DOES BIG DATA HELP …FOR REALS

•  GET THE IDEA: KNOW THE MARKET •  STATE OF THE INDUSTRY, MILLENNIALS, EDM, AWARD SHOWS

•  OBSERVE OPPORTUNITIES •  TRENDS, SPONSORSHIP, CROSS PROMOTIONAL

OPPORTUNITIES

•  LEAD WITH CONFIDENCE •  USE DATA TO BACK THE CREATIVE HUNCH

•  DETERMINE REAL ROI •  DON’T GUESTIMATE ROI OR RELY ON SOCIAL – GET HARD

NUMBERS

GET THE IDEA STATE OF THE INDUSTRY

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ROCK IS STILL THE LARGEST ALBUM GENRE

35.6%  

14.7%   13.4%   12.9%  

3.5%   3.5%   2.6%   2.5%   2.5%   2.4%   1.8%   0.9%  

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COUNTRY MUSIC HITS NEW HIGH IN SUMMER 14 One of the most popular formats continues to get more popular each year

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

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Country Formats Source: Nielsen Metro PPM / M-SU 6a-12Mid / P25-54 AQH Share Top 45 markets (weighted average) of Country & New Country formats

P25-

54 A

QH

Sh

are

Jul 2011 7.2% Shr

Jul 2012 7.1% Shr

Jul 2013 8.2% Shr

Jul 2014 8.4% Shr

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2014 CONSUMPTION SHARES SHARE OF TOTAL EQUIVALENTS BY GENRE

22%

27%

18%

15%

19%

20%

32%

8%

20%

34%

30%

20%

23%

17%

24%

31%

26%

28%

22%

15%

9%

8%

10%

8%

23%

20%

35%

31%

14%

42%

12%

40%

11%

5%

4%

9%

All Music

Rock

R&B/Hip-Hop

Pop

Country

Dance/Elec

Christian/

Latin

Holiday/Seas

Classical

Jazz

Children

Phys Albums Dig Albums TEA On-Demand SEA

RANKED BY GENRE ACTIVITY

Digital Tracks TEA is weighted 10 track sales per one album. Streaming SEA is weighted 1500 plays per one album. Streaming plays includes only those providers that report on-demand activity data to Nielsen.

OBSERVE BECOME A TREND SPOTTER

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Distance Travelled

AVERAGE DISTANCE TRAVELLED Fans are willing to travel large distances to experience their favorite music festival

Source: Nielsen Music 360 2014. Sample: Overall-810. iHeartRadio-84. Coachella-63. Essence-64. Lollapalooza-77. Summerfest-64.

Average  distance  travelled  to  a  music  fes:val  903

miles

1,396  MILES  

1,244  MILES  

739  MILES  

666  MILES  637  MILES  

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ANNUAL MUSIC SPEND

Average annual music spend

Source: Nielsen Music 360 2014. Festival Spend Excluded.

$112

$53

$17 $15 $10

$47 $34

$9 $7 $4 $0

$20

$40

$60

$80

$100

$120

Admission to live events

(ex. Festivals)

Other formats (ex. digital)

Digital Tracks Digital Albums Paid streaming services

Festival fans

Festival fans invest more in music overall, not just through festivals

$138 Average  fes:val  :cket  spend  

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BIG PICTURE: MILLENNIALS AND TECH 18-34 year olds (Millennials) are much more likely to…

67% 82% own smartphones

13% 19% own an Apple computer

34% 48% use Twitter

89% 95% listen to music while doing other things

Base: Ages 18-34, 2014 (745) vs. Gen Pop (2581). Questions based on past 12 months.

Gen Pop Millennials

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58%

42% 45%

55%

TRADITIONAL VS. MODERN COUNTRY

Source: Nielsen NetView. Percentages reflect % share of Country Music Listeners. Indices are % Country / % all US * 100

Traditional country fans skew male, while modern country music fans skew female

TRADITIONAL COUNTRY MUSIC

FANS

MODERN COUNTRY MUSIC

FANS MALE FEMALE

Each artist was classified as “modern” or “traditional” in order to view demographic differences between different

country subgenres.

Country

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COUNTRY TOP U.S. MARKET AREAS There are 4 Texas DMAs in the top 10 country music market areas

AREA TRACK SALES (MM)

% OF U.S. TRACK SALES

INDEX VS. POPULATION

SIZE

Greenville/Spartanburg, SC/ Asheville, NC 6.5 0.9% 290

Oklahoma City, OK 8.9 1.3% 186

Austin, TX 8.4 1.2% 165

Waco/Temple/Bryan, TX 4.3 0.6% 164

Tulsa, OK 5.6 0.8% 158

Nashville, TN 10.7 1.5% 155

Lincoln/Hastings/Kearney, NE 2.8 0.4% 154

Des Moines, IA 4.4 0.6% 153

Dallas-Ft. Worth, TX 28.5 4.1% 151

San Antonio, TX 9.9 1.4% 151

Source: Nielsen SoundScan Track Sales for Country Music, 2008-2014Q2

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HISPANICS ARE MORE LIKELY TO FEEL…

STRONGER DEDICATION TO BANDS

“It’s important for me to own something physical from my favorite band”

“It's important to me to buy CDs from my favorite musicians/bands”

STRONGER ATTITUDES TOWARD MUSIC

“I connect with friends and family through music”

“My friends think of me as trendsetter when it comes to music”

STRONGER PURCHASE INTENT

“I enjoy adding to my digital music collection”

“Music is an impulse buy for me, I don't plan ahead”

STRONGER PURCHASE BEHAVIOR

Average total music spend is ~20% higher for Hispanics

Smartphone streaming is more popular among Hispanics

BASE: ENGLISH-SPEAKING HISPANICS Source: Nielsen Music 360 2014, self-identified as Hispanic (771) versus weighted total of all respondents (2581)

Hispanic | Gen Pop

33% 26% 35% 29%

46% 38% 29% 19%

55% 46% 37% 30%

Hispanics are more likely than average to agree with to the following statements:

$128 $109 60% 44%

LEAD WITH CONFIDENCE

USING DATA TO BACK HUNCHES

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BRANDS AND BANDS Connecting with consumers through music

52%

43% of millennials will view a brand more favorably if they feature music from a band they like in an advertisement

of millennials will view a brand more favorably if they offer free downloads of a band they like

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BRANDS AND BANDS Top ways to integrate with music

1.  Free downloads

2.  Sweepstakes with music prizes, including merch and live experiences

3.  Use music in advertising

4.  Sponsor a tour

5.  Exclusive content or opportunities to purchase tickets

6.  Product placement in music videos

7.  Product placement in music competition shows

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N-SCORE CELEBRITY PERCEPTION Our N-Score tool allows us to measure fan affinity and sentiment for individual celebrities – and assess their potential for brand partnerships

N-­‐Score  

Likeability  

Awareness  

Attributes  

We can evaluate an artist or celebrity’s

ability to move products and

enhance brand reputation.

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41

50

12

13

25

27

10

13

23

26

52

17 Source: Nielsen N-Score.

29

52

15

16

20

29

15

14

21

25

51

20

ALL AGES

AVG RAP/ HIP-HOP

N-SCORE PERSONALITY SCORECARD: DRAKE Fan affinity and overall perception of Drake show lifts among Millennials, outpacing the average Rap/Hip-Hop scores across most all measures

63 58

62

57

13

17

23

24

9

15

23

28

45

15

73

AGES 18-34

Awareness

Likeability

Dependable

Funny

Good Looking

Influential

Offensive

Role Model

Social Media Savvy

Stylish

Successful

Trendsetter

N-Score

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Awareness

Likeability

Dependable

Funny

Good Looking

Influential

Offensive

Role Model

Social Media Savvy

Stylish

Successful

Trendsetter

18

47

9

11

8

22

8

7

15

14

43

22 Source: Nielsen N-Score.

16

55

14

15

20

27

9

13

22

23

43

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ALL AGES

AVG EDM

N-SCORE PERSONALITY SCORECARD: DEADMAU5 Though trailing the EDM benchmark across a number of individual attributes, Deadmau5 ultimately yields the greatest overall N-Score among a18-34 due to increased awareness

N-Score 53 56

31

54

11

13

12

24

7

7

14

15

42

23

61

AGES 18-34

DETERMINE REAL ROI NO FUZZY MATH

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KATY PERRY: HYPED FOR HALFTIME

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[VALUE] [VALUE]

0

100

200

300

400

500

600

700

800

900

1000

25%

30%

35%

40%

45%

50%

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

GRPs Total HH's NFL/Perry Fans

Share of Pepsi sales peak on the announcement of Perry as the halftime performer, and during the playoffs

KATY PERRY FANS / PEPSI SALES TIMELINE

Regular  Pepsi  sales  as  a  share  of  all  regular  Cola  purchases  Source:  Nielsen  Homescan,    Off-­‐Season  1/26/2014-­‐8/23/14;  Regular  Season  8/24/2014-­‐12/20/2014,  Playoffs  12/21/2014-­‐1/24/2014  

11/24/2013: Pepsi begins airing the ‘Halftime’ ad,

featuring music by Katy Perry

10/09/14: First announcement that Katy Perry will play Pepsi

Halftime Show

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ARTIST INFUSED ADS

Source: Nielsen TVBE. 11/24/13 – 11/9/14

GENERAL RECALL

BRAND RECALL

BRAND LINKAGE

LIKEABILITY LINKAGE

45%

20%

44%

56%

38%

11%

29%

41%

Advertising featuring musical artists can see a meaningful boost when placed within award show programming

WITHIN MUSIC AWARD SHOWS

OUSTIDE MUSIC AWARD SHOWS

KATY PERRY INSTAGLAM :15

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EDM / BEVERAGE ACTIVATION How one brand’s investment in EDM increased actual sales of their beverage.

Formula for success: 1.  Syndicated data

•  Music 360 •  Nielsen EDM Insights •  Festival Insights

2.  Custom data •  Homescan panel

•  Hispanic reach •  Brand Effect for TV ads

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RETURN ON EDM Soda marketing campaign using EDM music saw strong returns during the activation

Chart shows total dollar spent in the Lemon and Lime category by each buyer group. Figures are indexed against pre. / Post period limited to unified buyer group through entire research period Dec ‘13 – Feb ’15 / Source: Nielsen Entertainment. HomeScan. Pre: Dec’13 – Feb ‘14; During: April ‘14 – July ’14; Post Dec ‘14 – Feb ‘15

0

25

50

75

100

125

150

Pre

During

Post

-2%

Pre During Post

All Households EDM Profile

Pre During Post

+26%

Ind

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-3% -9%

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2012  The

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•  GET THE IDEA: KNOW THE MARKET •  STATE OF THE INDUSTRY, MILLENNIALS, EDM, AWARD SHOWS

•  OBSERVE OPPORTUNITIES •  TRENDS, SPONSORSHIP, CROSS PROMOTIONAL OPPORTUNITIES

•  LEAD WITH CONFIDENCE •  USE DATA TO BACK THE CREATIVE HUNCH

•  DETERMINE REAL ROI •  DON’T GUESTIMATE ROI OR RELY ON SOCIAL – GET HARD NUMBERS

Thank you TATIANA OLIVEIRA SIMONIAN VP, Branded Music @Tatiana