CMA PRIME PROSPECT STUDY MEASURES IMPACT OF ECONOMY ON COUNTRY FAN ENGAGEMENT

By Courtesy of CMA World
Posted Friday, October 30, 2009

CMA PRIME PROSPECT STUDY MEASURES IMPACT OF ECONOMY ON COUNTRY FAN ENGAGEMENT
Latest CMA Research Findings Available Online Now as a Benefit to CMA Members; New Tracking of 2008 CMA Consumer Segmentation Study Begins in November

NASHVILLE - If knowledge is power, then the Country Music Association is the place to get your information fix with resource materials and research findings to support the current and future business interests of the Country Music industry.

Continuing with the initial summary of findings that stemmed from its 2008 Country Music Consumer Segmentation Study, CMA cast new light into the interests and resources of the genre's most potentially rewarding fan base, identified as Prime Prospects, with information that measures the impact of the economy on Country fan engagement.

More Research on the Way
The latest information gathered by the Leo Burnett Company and The Right Brain Consumer Consulting from earlier this year builds on data previously made available to CMA members at My.CMAworld.com.

Following "The 43rd Annual CMA Awards," which airs live Wednesday, Nov. 11 (8:00-11:00 PM/ET) on the ABC Television Network from the Sommet Center in Nashville, CMA will begin yet another round of research. The new study will track any changes from the original 2008 Consumer Segmentation Study. For the second year, this information will be presented at CRS 41, including a follow-up panel to help attendees analyze the study's findings. The presentation will be held Thursday, Feb. 25 (11:00 AM/CT) at Country Radio Seminar 41.

Results from the Latest Update
New information is available now. A survey was undertaken early this year by telephone and online with 712 Country Music fans (18-54), who were identified as Prime Prospects. They are grouped in four categories that represent the most promising demographics for current and potential consumers: CountryPhiles (passionate fans of Country Music), MusicPhiles (dedicated fans of Country as well as other genres), Today's Traditional (prospective CountryPhiles who haven't yet monetized their commitment significantly), and Pop Country (prospective MusicPhiles whose Country tastes lean toward the pop side).

A key purpose of this new round of research was to gauge the impact of the current economy on the behavior of fans in each category. Results indicate that the Core Country Music fan segments (CountryPhiles and MusicPhiles) are less likely to monetize their support for the genre than they would have been a year ago; in effect, many have migrated from the CountryPhile and MusicPhile groups into the less responsive categories that fall under the heading of Low-Funding Fans. At the same time, the size of the total Country fan base (adults 18-54) has grown slightly from 39.7 in 2008 to 40.9 in 2009.

The challenge of keeping these fans engaged even in uncertain times guided the formulation of a series of questions posed in the survey. The questions, followed by multiple-choice answers, yielded important insights into the lives of today's Country fan including:

How would you describe the state of your own personal finances these days? Eight out of 10 Prime Prospects regard today's economic conditions as negative, (categorizing it as "Not So Good" or "Poor"). As for the more engaged CountryPhile segment, those quizzed by phone were the predominant demographic to respond "Excellent" (about one in seven), while 25 percent struggle with more difficult financial challenges and answered "Poor" when asked about the state off their own personal finances.

Looking ahead 12 months, how do you see your household financial situation? Respondents overall were hopeful about their prospects, choosing "better" or "same" in far greater numbers than "worse." CountryPhiles polled by phone constituted the most optimistic demographic.

In the past 12 months, have you been spending about as much as you did before, spending more or cutting back? Respondents as a whole admitted to cutting back on their spending over the previous year, but here too the CountryPhiles emerged as the most potentially responsive group; though they cut down on their expenses, they did so less extensively than other Prime Prospect segments.

For deeper insight into these trends, researchers asked respondents to break their spending patterns down into 28 specific areas. Not surprisingly, the findings indicate significant reductions particularly in discretionary areas such as luxury items, travel, dining out, and electronics, while expenditures stayed steady on cell phones, gas, Internet access, and other areas considered essential and often a conduit for connectivity - including some entertainment channels such as cable TV and satellite radio.

When asked about their pursuit of certain leisure activities, respondents indicated that they were pursuing (or intended to pursue) those that were free as much (or more) than they had in the previous year. They planned to stop or cut down on renting and going to movies and subscribing to magazines. The free activities they wanted to pursue included no-cost downloads of Country Music, a fact that leads to another area of exploration in the CMA study.

Internet Findings
The 2008 CMA BrandProspect Segmentation Study determined that home Internet use varied widely throughout the entire Prime Prospect sample, but that it skewed low among CountryPhiles. Still, nine out of 10 Country Prime Prospects go online at various times and locations, mostly via high-speed access, and within the CountryPhile segment that number is four out of five. Equally important, the Core Fans - those most likely to monetize their interest in the genre - are the most inclined within the Country Music fan base to access information online. And within that group, CountryPhiles with regular online access lead the pack in frequency of Internet use, especially in visits to Country-devoted destinations.

The nature of these online excursions was examined as well. About two out of five Prime Prospects with online access will search for Country Music-related content each month; one in five do so weekly. Videos and online radio or music samples are the most popular weekly destinations; and Country news, song lyrics and product purchases lead the list for monthly visits by Prime Prospects as a whole. Within that group, CountryPhiles index highly on using the Internet to feel more connected to their favorite artists and music. YouTube, iTunes and radio station sites in particular also influenced their subsequent tastes and behavior.

Researcher Insights and Recommendations
With vast amounts of data available at their fingertips, CMA's members have access to information that will aid them in drawing their own conclusions, specific to their individual business interests. But researchers also offered some of their insights and recommended responses based on this latest round of findings:

1. Economic downturns have had a stronger impact on Country Music Core Fans than the population at large, with the result that some have joined the "Low-Funding Fan" group whose members are less likely to spend on Country Music products.

2. Different segments of the Prime Prospect Country Fans behave and respond in unique ways making it important for various music industry interests to be clear and focused about who they target with marketing campaigns.

3. Most Country fans go online occasionally, though not always at home, making YouTube, iTunes, and radio station sites important mass-marketing networks - especially for CountryPhiles and MusicPhiles.

4. There are still opportunities and to generate revenue in changing and challenging times. Album compilations can be created for CountryPhiles, Pop Country fans, and other groups. Young fans can be invited to assemble in bus packages to concerts. Simple downloads can stimulate novice fans to purchase more easily and frequently online. And more.

An in-depth portrait of CountryPhiles and MusicPhiles as well as information on CMA Country Music Consumer Segmentation Study, CMA BrandProspect Segmentation Algorithm and CMA Prime Prospect Study are available on the CMA members-only Web site, My.CMAworld.com.