Two-thirds of Millennials (18-34) who listen to Pandora would rather spend their money on “experiences” than “things,” according to a study [pdf] from the internet radio platform. The report notes that this represents a 10% increase from last year’s study, with women (74%) more likely than men (58.5%) to prefer experiences.
The focus on experiences brings to mind 2014 research from LoyaltyOne, in which Millennials appeared to show an above-average inclination to want hands-on experiences as loyalty rewards.
The Pandora survey asked Millennial listeners to identify the experiences on which they’d prefer to spend their money. Not too surprisingly given that the sample base is comprised of Pandora listeners, music-related experiences ranked highly. While travel (81%) was the experience cited by most respondents, concerts (60%) followed, ahead of movies (49%), music festivals (32%) and sporting events (26%).
Millennials’ affinity for live music events has been found in earlier research, too. According to Nielsen, while 52% of Americans’ music-related spending goes to live events, that figure rises to 64% among Millennials.
When it comes to the most important factors for attending a music event, respondents overwhelmingly pointed to artists they know and like (95%). Beyond that, around half also cited the atmosphere (55%) and their friends’ attendance (49%) as motivators, with 1 in 4 also noting a fear of missing out. If they can’t attend, one-quarter would live stream a music event, which Pandora notes is “important for brands to think about.” Brands sponsoring live streaming video can expect benefits relating to authenticity of communication, per a recent report from BrandLive.
Meanwhile, the Pandora study finds that 82% of Millennial listeners notice brands sponsoring a music event, and 1 in 3 have a more positive opinion of the brand after the event. Younger Millennials (18-24) as well as Hispanics and African-Americans show the most positive response to brand sponsorships, per the study, which also notes that more than 1 in 3 Millennial listeners are more likely to purchase the brand’s product after seeing it at an event.
Previous research from Nielsen indicates that 43% of music fans notice when a brand or product sponsors an artist or brand.
Recent data from IEG reveals that sponsorship spending on music in North America is expected to grow by 4.8% this year to $1.4 billion, outperforming the sponsorship industry (4%) growth overall.
About the Data: Pandora describes its methodology as follows:
“A survey ran on the Pandora Soundboard in January 2016 surveying Pandora listeners A18+ about their attitudes and opinions regarding events and concert attendance.
A total of N=3,755 A18+ answered the survey. Data has been weighted by gender and age to match Pandora’s registered user data.”