One of the first things to know about marketing is that it is, despite what effect people think advertising has on them, extremely difficult to get people to change their behaviour through marketing.
So it is important to understand before you start selling things to the public what it is that they want to buy. Here is a chart from Nielsen that shows how people spent their music money in 2014. So it is probably not too much different today.
There’s also a chart that shows how much the average person spends on music in a year.
First off, the bad news. The average person spends $105 on music in a year. Now, the good news. That is the AVERAGE person. That includes people that spend $0 per year on music (yes, they do exist) and people who spend thousands of dollars on music. If you remember our Customer Pyramid, those are the SUPER FANS. And that’s why you want to spend your money and time selling them something rather than the NON-MUSICAL.
This chart also tells you, though, where to concentrate your efforts. First of all, you are only able to get a certain percentage of the dollars. You are not a big name act (35% of music spending) nor a Satellite Radio company (9%) or Online Music Streaming Service (3%). And while you might appear at a festival, you yourself are not a festival. Knock off another 8%. DJ events take another 3.5%. So before you start, you’re basically not going to get a sniff of 56% of what the average person spends on music.
The GOOD news, though, is that thanks to your new found marketing intelligence you are not going to be talking to the average person, and the non average people (who spend more than $100 per year) spend 44% of their music money on things you can provide:
Buying Music Gift Cards for Others: 9%
Buying Digital Tracks: 8%
Buying Digital Albums: 7%
Paying Cover to Small Live Music Events: 5% (YAY!)
Buying Other Forms (Vinyl): 2.5%
Find more statistics at Statista