Shazam aims to grow its advertising revenue by offering brands more data on music consumption and new sponsorship opportunities. Brands will be able to use the “Shazam Brand Connect” program to identify up-and-coming artists and musical genres they can align themselves with. Until now, Shazam has mostly sold their data to record labels to help them gauge market interests and trends. Moreover, the company also plans to launch its first event highlighting emerging artists later this year, which will provide brands with sponsorship opportunities.
What Brands Need To Do
Previously, Shazam mostly limited their ad efforts to selling in-app banner ads and occasional pop-ups while users wait for search results. Now as it looks to boost ad revenue, it is offering brands more data and new opportunities to connect brands with the music industry. At a time when consumers start to turn away from traditional ads (see more on this in the Ad Avoidance section of our Outlook 2016), it is important for brands to take advantage of Shazam’s diversified ad products and try engaging their audience with branded music content and events.