AI tools, leveraging NFTs, virtual concerts? These are only a few of the biggest music marketing trends of 2022.
2020 was a historically tricky year for artists. And while in 2021 and 2022 we saw some excellent developments, making money as an artist or brand in the music industry is still uncertain.
According to research by PwC, the music industry suffered from the most dramatic decline in global revenue in its history, falling by 63.8%. This number is not expected to return to pre-pandemic levels until at least 2024. It’s truly shocking.
This marks the first time since 2000 - when touring overtook physical music sales as artists’ primary revenue source - that the recorded music industry is worth more than the live music industry. The decline in revenue is felt throughout the whole music industry.
1. TikTok & Instagram Reels
Short-form videos and user-generated content are becoming increasingly popular. TikTok and Instagram’s Reels were a massive trend in 2021, and we believe they are here to stay. And you should be aware of the opportunities these platforms offer for marketing your music.
TikTok has been responsible for the rise of several chart-topping hits over the past years. Through creative marketing efforts on platforms like TikTok, you may attract a group of new fans as an artist.
Drake famously collaborated with TikToker Toosie to promote his ‘Toosie Slide’ song.
And guess what?
It topped the charts because the ‘Toosie Slide Challenge’ went viral on the platform. Imagine if he didn’t put in the extra effort to create a partnership like this. Imagine if he had only put a post on his Instagram announcing the new single. Do you think the song still would have topped the charts?
Creative artists and their innovative marketing teams are leading the way, so get creative with the marketing strategy of your releases! Remember, you only need a fanbase of 1000 true fans to make a living as an artist, and you can only win their attention with engaging and valuable
2. Music NFTs
As we discussed in one of our articles, music NFTs enable artists to generate instant income that is controlled directly by an artist without any intermediaries.
Music NFTs are changing the industry rapidly. They are giving more control to the artist every day. Say that you are a producer, you can easily now sell beats directly to the buyers, as music NFT. Thanks to their immutability, end-users can purchase these beats, or a track, on-chain and use seamlessly or hold them for profit on resales.
Music producers get to earn a royalty on every resale.
Some musicians who have created NFTs include Snoop Dogg, Parker McCollum, Nirvana, Duran Duran, and others. Organizations such as The Recording Academy/GRAMMYs, SXSW, Coachella, Billboard, Universal Music, and Warner Music have created NFTs
If you want to learn more about music NFTs and their value, you can click here.
3. Online experiences & tools
While it is essential to upload great content consistently, it does not always pay off in revenue directly. A way of monetizing your great content is by making it exclusive and selling it to your true fans.
For artists, exclusive content for monetization could be any of these things:
- Radio shows
- Video content
- Tickets to live events
Looking at the metaverse from an artist's perspective, it sure does open a lot of doors. It enables musicians to take their brand to the next level.
Why is it so important? The creators have the final say on the distribution of their work!
Other than that, it helps musicians to reach their audience on a much higher personal level. It’s the merging of physical and digital experiences that creates the feeling of musicians and their fans being in one place.
So, this enables artists to interact with each other, increasing the audience reach of the musician. And, of course, this will come with added revenue streams.
Another way to engage with fans and provide them with a valuable experience is simply to chat with them. This is a great way to showcase your personality and maintain that connection with your community of true fans. Many artists are seeing the value of these artist-fan connections and use Instagram DMs or Discord as a way to chat with their core fans. With Fangage, you can easily send emails or text messages directly to your true fans.
A.I tools for A.I-mediated composition, like Amper and Popgun, and voice synthesis are changing the way music distribution works. It also makes it more easier and affordable for thousands of musicians. Cherie Hu, an award-winning freelance journalist, writes:
“I am personally excited about technologies that will enable more people than ever before — people who would never have considered themselves "artists" — to make music for the first time, often with the help of artificial intelligence. Such technologies include voice synthesis (e.g. Replica Studios) and AI-facilitated composition (e.g. Boomy, Bronze) tools that will enable people to go through the funnel from creation to distribution and then monetization in record time.”
4. Social media is changing
And it is not for the better.
Social media platforms have always been great channels to build a following, but reaching your real fans through social media is getting more complicated every day. The big social media platforms increase advertisement revenues, and you need to pay for advertisements to reach your fans. But these platforms are still widely used. The global demand for content will only increase over this decade. As a result, these platforms will be oversaturated, with creators competing for people’s attention.
However, the increase in demand for content means many opportunities to build a fanbase. That is if you focus on sharing the right content on the right platform - meaning the one where your audience can be found.
It is getting more and more important, especially for independent artists, to cultivate a small army of dedicated fans on the platforms you use. You need a steady stream of engagement on social media because you are more dependent than ever on this small army to get a steady income.
5. Live streaming
Live streaming has skyrocketed as a result of the pandemic. No other content is as engaging as live streaming is. And some fans truly seek this live experience, especially now that live shows are off the table.
Live streaming is also a great way of creating content. After its end, you can save your live stream and create content for other platforms with the footage.
6. It is time to reinvent business models
But times like these always bring great opportunities to those who are optimistic and adaptable to change.
The cancellation of shows and festivals worldwide left a gap between artists and fans. Artists promote themselves through music and social media presence and then use ticket sales for live shows to make money from their fanbase. But this is also where that magic connection between artist and fan occurs. And the possibility of making money, but especially that magical connection, was suddenly lost.
But the truth is, true fans still want to financially support their favorite artists, live show or not. So, you need to find creative ways to monetize your fanbase.
The pandemic has accelerated the future of technology, as consumers’ readiness to engage with digital media experiences has accelerated - also in music. Give Fangage a try and see how technology has opened the way for artists to reinvent how they make money online.
Artists must adapt and use owned marketing channels to sustain an income in today's music industry.
Earn money with Fangage by selling tickets, music, merchandise, and exclusive content to fans directly from your website - keeping 100% of the profits. You can do this either through one-time payments or content subscriptions.
The music industry has relied on live performance revenue for far too long. Because of this, many artists are having trouble reinventing their business models and making money in these uncertain times.
The trends named in this blog were long on the way, but now you don’t have a choice but to adapt quickly if you want to have a steady monthly income. If you build an owned audience now, you will be the big winner once live shows come back. You will be able to sell the most tickets because you maintain a close relationship with your fanbase.
Innovate now! Invest time in your fanbase and find new ways to monetize it. Try out Fangage now to build an owned audience and start monetizing today.