How Playlist Promotions work and Calculating The Results
By John Reynolds
You get a lot of insights from social platforms but how to calculate playlist promo and results is still tricky.
A performing, recording, or independent musician has a 5% chance to live solely off their music. This includes musicians who live with their family unit. Those who are a part of a large music label, and finally the ones who spend at least 30% of their working hours performing in venues, bars, and everything in between.
The stereotype of the starving artist has seldom changed over the last century. However, the hope digital outlets generate has given musicians of this generation a leg up on their senior counterparts.
CD sales and demo tapes dominated the revenue stream only 30 years ago. Today the individual track, the stream, the view, and finally the live show, are inescapable reaching one's fans and monetizing a career.
In light of this new form of digital dominion, the industry of playlist curators exploded and is the main gateway for artists to get their music out.
Riddled with bot accounts the market is difficult to navigate. Yet, there is hope if you find the right agency to rummage through the fraudulent accounts.
Playlist marketplaces are important to engage in Playlist Promotion
Playlist marketplaces are a jungle of questions for most artists. Will the streams count, will they lead to more, and is it really worth it? Usually composed of a shadowy SEO-jammed website with user-friendly buy buttons, playlist marketplaces are in the grey zone of the music promotions tool kit.
As buying views is pretty controversial on account of bot accounts and automation, the proper way of addressing playlist curators is the classic pitch, which an artist can do via submission portals or directly by finding the owner of the playlist in question.
Not always the simplest method, nor does it usually garner a lot of response, but if your music is fly, your pitch is clean and your timing on when you sent the message was properly throughout, you should expect at least a 15% positive response rate. Which is not bad, considering it's a question of numbers. The more playlists you are on, the more views or streams you get.
The Reality of Streaming Royalties
Despite streaming making up over 60% of all redistributed revenue in the music industry, the average artist will be making under 1000$ a year from streaming. In the case of Spotify, arguably the largest streaming platform in the world, a recent study by Forbes demonstrated that from their 7 billion dollars of royalty payouts, 28% of the artists received over 10 000$.
Now, that might seem like a lot, but consider that the 28% includes label artists, superstars, film scores, and legacy artists that have spent decades making a career. This essentially means that they are most likely equipped with a promotional or marketing team, that monitors, tracks, and adjusts their reach metrics to maintain a steady flow of listeners and onboard new fans.
Calculating Playlist Promotion Campaigns
So, let’s do some calculations. At an average market payout of 0.006325 $ / stream, 159 000 streams would gross roughly 1000 USD, which means to reach that 10k revenue milestone an artist would need to generate close to 1,59 million views in the first year of their Spotify career.
With Spotify advertising starting at 250 USD per ad campaign, and pseudo-view marketplaces selling 10k views for an average of 50 USD, an artist would be able to hit 100k views with roughly 750 USD. Assuming that they would make an extra 30% viewership count due to the ad push, 130k views would have an average cost of 0.005769 $, at a margin of roughly 8% grossing 822.25 USD a profit of 72.25 USD. Following the numbers, the average value of your first batch of streams is 0.000556 $. That's right, dollars, not satoshi’s.
Streamlining your work and pushing with paid advertising is an option. But at an 8% margin, not counting the risk, the time, the constant monitoring, and the artists' scalable popularity, which needs to break through the industry's saturated market, it is not a good business case and does not offer a livable wage for anyone.
Firstly it is important to realize that your chances of reaching monetization amounts with a laissez-faire attitude on streaming platforms like Spotify are slim to none. All streaming platforms are marketing or promo dependent if you want to use them as a source of revenue, rather than just another profile. According to Spotify, 57 000 of its nearly 10 million creators represent over 90% of the streams, and therefore its royalty redistribution
The rule of thumb for most professional artists is 50 / 50, 50% of the time you market and build your brand, and 50% of the time you make your art; fair enough. But this means your learning curve, the trial, and error of target markets, the engagement analysis, and of course the adaptation of your strategy can only be done during 50% of your waking & working hours.
If algorithms were that simple to adapt to, there wouldn't be a 50 billion $ market cap in music marketing technology. The reality of the situation is that without professional help or some type of technological literacy, you are basically shooting in the dark hoping to hit a fly on the nose. Reliant on fan 2 fan engagement, the artist without a team nor the digital know-how is setting themselves up for failure and is unfortunately caught in the blaze of hopium offered by most platforms.
Taking into account that a salary of 10 - 30k USD may be an upper or middle-class income for the developing world, but in all major North American and European cities, where the average rent is between 1000 - 1800 USD, an annual income under 30k means you are spending over 50% of your net on basic housing before taxes and food are even brought into the mix.
Needless to say, if this is your only income, you are stuck in a literal poverty cycle and will most likely be going through serious financial stress as life is far from being a predictable path.
To stream or not to stream why it matters when you calculate playlist promo?
For MPT Agency, all industries throughout history have demonstrated, you cannot challenge technological innovation. All artists should be present on all streaming platforms, be it only for the visibility or convenience factor for fans. The one they ultimately choose to use in their conversion funnel is dependent on the artists' budget, their time metrics, and of course, their understanding of the algorithmic ecosystem that governs the how's and why’s of visibility.
Paying for streams can be a part of larger campaigns the artist adopts in their path to success, but in no way, shape or form should it be the be-all and end-all of their exposure strategy.
Make sure you check our blog about influencers who can be a huge help to your playlist campaign. We regularly post key artist content so make sure to follow us on Instagram for more music marketing-related updates.
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Posted on September 12, 2022
The Ultimate Guide To Influencer Marketing For Musicians￼
By Yvonne Martin
How does one define the ultimate guide to influencer marketing? To level the playing field in the music business today is more of an architectural development than anything. It is simpler than ever to produce an album or a single in your bedroom, submit it to the internet, and encourage interaction on social media.
It also enables musicians to use influencer marketing. Not only the internet, but all technology is to blame for this.
Naturally, the internet allows influencers to advertise music to millions of prospective followers worldwide through their social media platforms.
The disadvantage of the simplicity of recording and sharing music is that everyone will be able to do it. How can you make your song stand out from all the others and be heard in the crowd?
That is indeed a difficulty, but there are tools available to assist you. For musicians, one such method is Influencer Marketing.
Does it seem interesting to you? So, consider this your formal invitation to join the influencer marketing renaissance.
What Does Influencer Marketing For Music Look Like?
One of the largest emerging trends that independent musicians may currently include in their social media marketing plan is influencer marketing.
A so-called "influencer" is used to promote a good, service, or brand in influencer marketing, a kind of social media advertising. When employing influencer marketing, it's important to consider the influencer's account's emphasis and how their audience's interests relate to your brand.
It's not surprising that influencers have a significant effect on what music is popular and, by extension, what isn't in a world where social media platforms like TikTok, Instagram, and YouTube are the primary tastemakers for new music.
Particularly in the music industry, the development of influencer marketing has helped new musicians gain massive fan bases, generate buzz for their songs, and become overnight sensations.
Influencers may share your music with their audience in several different ways. They could come up to you and want to listen to your music. Influencer marketing, on the other hand, usually emphasizes organized collaborations in which you've had some input. They might:
Review or get live feedback on your music
Incorporate your music into a video's backdrop.
Put a caption about your music.
How To Use Influencer Marketing As A Musician?
If done properly, influencer marketing is a terrific tool in a musician's marketing toolbox. It's better to get started by learning how to utilize it to create the greatest campaign you can.
Do Extensive Research
The most crucial phase of any marketing plan is research. You need to understand how to locate affiliates and how to recognize the top affiliates for your brand at the start of your influencer marketing journey.
Select your influencers
Know the influencer’s content
Know their services
Know their values
And most importantly, know your goals
Broaden Your Platforms
Instagram is sometimes referred to be the influencers' social media network, and it is undoubtedly well-liked by some groups of individuals. Influencers are not just present on one site, though!
Depending on your objectives, you may find that the increasingly popular video influencer platforms Youtube and Tiktok are more suited for artists. For instance, a well-known TikTok creator may include your music in a video to make it a trend, which might be more successful than a silent Instagram post.
Plan Your Budget
Influencer marketing often entails payment in exchange for your influencer's services, just like any other marketing campaign.
Relevance to your niche or genre is more crucial than audience growth. This should be reflected in your budget, which should be based on the influencer's price which is most likely to have an impact rather than their popularity.
Your team finance strategy must be effective and include a backup plan for extra services that can be useful to you, such as giveaways.
Stay In Control
There are occasions when marketing campaigns don't go as expected. This is just the way business works; it doesn't mean your campaign was a failure; it just means you may use it to your advantage moving forward.
You must determine the cause if your campaign doesn't seem to be benefiting your brand.
Regression testing is one method you may use to do that. Define regression testing then.
Regression testing allows you to evaluate the strengths and weaknesses of particular campaign components without changing the elements of your campaign that are already successful.
Make sure to have a positive working relationship, and never forget to consult your affiliate partners before making significant changes to your campaign.
Which Platforms Work Best For Music Influencer Marketing?
For creators of any size, becoming viral on TikTok is now a feasible goal thanks to the platform's algorithm. The music industry may target a younger audience that favors music influencers over all other types of influencers at this center for Gen Z.
The great majority of TikTok's viral moments originate from its Commercial Music Library, which is a collection of more than 150,000 pre-cleared, royalty-free tunes gathered from up-and-coming musicians and prestigious record labels. Each track may be used for advertisements and promotions, and the collection is accessible worldwide.
Instagram offers a decent collection of tracks that users can use for their Stories and Reels, similar to TikTok. This has shown to be an effective strategy for artists to engage audiences and introduce them to fresh talent. In addition, short videos with music might help your content be noticed given Instagram's new focus on Reel content.
YouTube developed YouTube Shorts in 2021 as its own short-form vertical format to keep pace with TikTok and Instagram Reels. Users may utilize Shorts to be able to produce content that resembles the viral trends on TikTok and Instagram by selecting music snippets from among the millions of videos posted on the platform.
Although Reels and TikTok videos are more well-known than Shorts, YouTube remains the best option for people who want access to a wider variety of music.
Twitch is typically associated with live gaming broadcasts, but it's also a platform where musicians can share their work, grow a fanbase, and interact with their followers.
As all live performances and events were put on hold due to the pandemic, Twitch's popularity among musicians skyrocketed. To organize virtual shows, conduct Q&As, and showcase their most recent albums, many musicians turned to the streaming site as a consequence.
However, those who work in the music industry also utilize Twitch as a method to play video games after work. Regular users of the platform, artists like Post Malone and T-Pain have taken advantage of it to reach a larger audience.
Use music influencer marketing to capitalize on the biggest trends on social media.
The simplest method to add personality to your content on social media is to include music in your posts. And in the music industry, collaborating with creators might be the secret to expanding your audience and propelling your brand and merchandise to the top of the charts.
MPT Agency strives to develop your brand's online presence and can help you spread the word about your music and increase your fan base.
To find out what other services can enhance your musical career, make sure you check our blog regularly and follow us on Instagram for more music marketing-related updates.
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