The FINANCIAL — With the significant improvement in infrastructure and mobile technology proliferation, digital entertainment is increasingly popular in Asia Pacific. And as the average cost of data plans comes down while the respect for the need to pay for music content gradually heightens, demand for digital music entertainment in the region grows.
The music streaming industry in Asia Pacific embraces a strong market outlook, with forecast revenue of US$1.38 billion by the end of 2018 and the number of users reaching 87 million by 2020.
Asia Pacific also offers another advantage – amongst all regions, it carries the highest proportion of Internet users who have streamed music using mobile, showcasing the enthusiasm of Asians in utilising mobile as a primary streaming device, according to Ipsos.
Music streaming apps by default affect youngsters who rely on the platform to pick up their favorite tunes and the latest hits; this segment is highly receptive to advertising and expressing more confidence in purchasing products or using services that have been advertised.
There is considerable amplification power within music streamers. Compared to those who do not stream music, streamers are more likely to speak to friends and family about their purchases; they also believe that paying extra for quality is worthwhile and like to treat themselves with something special even if the item is expensive. This showcases the need to put music streaming apps on the advertising radar when targeting millennials. Music apps outperform social apps in terms of both click-through rate and install rate.
Possessing the potential to combine behavioural data with location granularity, music apps have the potential to become a platform that offers targeted, one-on-one advertising with an engaged, high-value and young audience.