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In a world of influencers and Instagram models, consumers are either more skeptical or more naïve than ever. Scroll through any social media page and you'll be met with a brand or sponsored post, only some of which are called out as advertisements. The lines between branded and non-branded content have never been blurrier. It has changed how we define a commercial, and how we define celebrity sponsorships.
Look no further than the music industry. In the past ten years, the industry has gone through monumental shifts in how music is distributed, and therefore, how much revenue artists receive (by and large, less). Looking at the chart below, it is clear to see how quickly the subscription and streaming model has grown as a source of digital revenue. From no notable revenue from this source until 2010, it steadily grows to roughly $4 billion in 2016.
“At wholesale value, the industry was up 14.6% to $2.7 billion... but overall market revenues are still significantly below the levels they were in 1999.”
As the RIAA states, “At wholesale value, the industry was up 14.6% to $2.7 billion... but overall market revenues are still significantly below the levels they were in 1999.” That was the U.S. industry’s biggest year ever, when revenues approached $15 billion. Still, there’s cause for optimism. The RIAA’s most recent data shows that 62% of industry revenue in the first half of 2017 is from streaming services.
Meanwhile, brands in 2017 are waking up to the fact that consumers need something more convincing than loyalty schemes and advertising. Brands have developed personalities, to the extent that their social handles get into petty Twitter wars, just like us. In a time when content is king, and social platforms are threatening traditional advertising, brands are seeking out ways to gain customers without just filling space on a screen. If product placements were for Gen X, branded content and experiences are for Gen Y and Z.
Dr. Reece Akhtar, an Applied Psychologist at University College London, says “brands endorse and collaborate with music artists and influencers in order to infiltrate subcultures, and cement themselves as integral members of the community.”
IF PRODUCT PLACEMENTS WERE FOR GEN X, BRANDED CONTENT AND EXPERIENCES ARE FOR GEN Y AND Z.
The meaning behind brand and artist partnerships has evolved quickly within the new music landscape. When you think of the following partnerships, what comes to mind? Diddy and Ciroc, Nicki Minaj and MYX Moscato, Vince Staples and Sprite. You can likely see these artists holding said products in various posts and ads, and recall mentions on tracks: “Myx Moscato and vodka, I’ma mix it."
FANS BECOME DESENSITIZED TO SEEING ESTABLISHED ARTISTS WITH RISING STARS, AND BECAUSE THE INCIDENCE IS HIGHER, THE ASSOCIATION IS LESS POWERFUL.
The purest form of co-sign is where the artist is actively involved in the design of the product they are promoting. Skepta and Nike recently got together to create SKAir. Dr. Akhtar comments, “When grime fans think of Skepta, Nike Air Max instantly comes to mind. This creates a symbiotic relationship between the consumer, the artist and the brand, where each supports the other in promoting a tribe, lifestyle and identity.”
Skepta confirms this connection in a recent interview with Hypebeast. “Fresh Air Maxes, especially being from London, is something that we’ve always known,” he said. For Skepta, Air Maxes are part of the culture he has taken globally with Boy Better Know.
Kojey Radical is an artist from East London and a man of impeccable style. Kojey is no stranger to brands asking him to wear their clothes. He has forged a collaborative partnership with Adidas EQT (a sub-brand that promises “everything that is essential, nothing that is not”) and we asked him how his relationship with Adidas is different.
