Market value is the music industry’s hidden currency
Market value is the music industry’s hidden currency
The better an artist’s social media presence, the higher their booking fees.
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Let’s dive into today’s topic:
Market value is the music industry’s hidden currency
Learn about what we're really selling in the music industry.
Why it matters
Artists have numerous revenue streams: streams, merchandise, ticket sales, sync placements, and more.
But what's the actual product fans are buying?
For some, it's the emotional benefits of the music—hedonistic energy or mood steering, for example. For others, it's a sense of belonging to the artist's community.
However, every artist shares one value indicator: their market value.
How it works
Market value is defined as the price an asset would fetch in the marketplace based on what buyers are willing to pay.
For artists, this can be quantified in various ways:
Booking fees: What venues and festivals are willing to pay for the act to perform.
Partnership value: What brands will pay for a sponsored social media post on the artist's platforms.
Etc
The market value is influenced by factors such as:
Additional festival visitors an act can attract.
Ticket prices the act can command.
Reach within the target audience for brand collaborations.
The desired brand spillover effects for brand collaborations.
Market value is an excellent long-term success metric. It’s the sum of all efforts over time, independent of the chosen product or revenue stream. Market value reflects the impact of various activities (album campaigns, tours, and even social media posts).
Market value significantly influences an artist's revenue and indicates progress towards a sustainable career. For instance, while a single release with 10k listeners might generate a few hundred euros, a higher market value creates a multiplier effect, boosting revenue for every show.
Since music is an emotional rather than a rational product, an artist’s market value is heavily influenced by brand value. Investing in branding, social media presence, and storytelling is crucial.
The better an artist’s social media presence, the higher their booking fees.
Yes, but..
A recent interview with a DJ -unfortunately, I forgot who it was, and I didn’t save the URL- pointed out that many festivals now book their lineup solely based on Instagram (vanity) metrics, e.g. DJs with the most followers get the gig.
While this aligns with the concept of market value, it’s a dangerous trend that can lead to homogeneous lineups and diminish experimentation, creativity, and talent opportunities.
This raises an important question: Should artists chase market value or focus on creative value instead? As is often the case in our industry, the best advice might be to do the opposite of what's proven successful in the past.
Take action now
Artists can start immediately prioritising market value in their strategies by tracking and monitoring their booking fees, ticket prices, partnership offers, and other indicators over time.
Your thoughts
Further reading
What Is Market Value? (Investopedia)
Artists are the worst direct-to-consumer brands on the internet (Where Music’s Going)
Finding the metrics that matter (The Fanbase Builder)
How an artist brand benefits fans (The Fanbase Builder)
How artists can regain control over their marketing efforts (The Fanbase Builder)
Creating personal winning streaks for artists (The Fanbase Builder)
Why ‘Total Likes’ is an excellent TikTok metric (The Fanbase Builder)