World-first study reveals music can cause 8% spending boost for businesses

Music technology company Audoo, has partnered with GEMA, the German performing rights society, to launch a world-first ‘Music Impact Study ’ to quantify the commercial value of background music in gastronomy and retail spaces using accurately tracked data.

The pioneering study powered by GEMA assesses that background music is an economic factor that can be measured scientifically. By comparing footfall and spending in commercial spaces, with and without background music, the ‘Music Impact Study’ has revealed that the use of background music increases sales in retail by an average of 8% and in gastronomy by an average of 5.4%. The economic benefits of using background music prove that a music license is a worthwhile “investment”.

“The fact that background music influences customer behaviour, customer retention and spending positively has been investigated many times, but there have been no concrete figures on the increase in sales so far. GEMA’s ‘Music Impact Study’ closes this research gap”, says… Sonja Schoenfeld, Project Manager of the “Music Impact Study” at GEMA. For the first time, the added value generated by commercial music users was measured directly at the point of sale of retail stores and gastronomy businesses.

Audoo’s cutting-edge music recognition technology played a crucial role in gathering accurate data for the study, reinforcing its and GEMA’s mission to enhance public performance royalties through precise music usage tracking.

The ‘Music Impact Study’ is a large-scale study that took place under the scientific direction of international scientists. In order to gain a 360-degree perspective, the connection between music and sales was examined using several scientific methodologies. The empirical field study at the Point of Sales was preceded by extensive literature research, quantitative surveys and interviews with experts.

Throughout the study, Audoo’s technology reported over 130,000 tracks with an impressive 99.6% device uptime which refers to the percentage of time that Audoo’s Audio Meters were operational and successfully collecting data during the study; ensuring precise and reliable data collection.

The data has also revealed music trends and insights; for example, the most-played song in the Retail sample was ‘Lifeline’ by German artist Glockenbach featuring Ella Henderson and in the Gastronomy sample, ‘Austin’ by US artist Dasha. The other leading track of domestic repertoire was ‘Wave’ by FAST BOY and Raf (most-played song of the Gastronomy sample) and the top domestic artists overall were Trettmann (Retail sample) and Michael Schulte (Gastronomy sample). Further topline stats are below.

Audoo’s seamless and venue-friendly self-installation process is what made this research possible, with most participants opting to keep their GDPR-compliant Audoo Audio Meter post-study, highlighting the value of this technology to retail and hospitality businesses.

The success of the ‘Music Impact Study’ underscores the value of precise music usage tracking and its potential impact on businesses. GEMA has described the research as a significant milestone and recommends that other rights societies engage in similar research.

Johannes Everding, Director of Business Development at GEMA commented: “Partnering with Audoo on the Music Impact Study has provided invaluable insights into how background music influences customer behaviour in commercial spaces. Audoo’s innovative technology ensured a seamless and highly effective data collection process and the results mark a significant milestone in understanding the commercial value of music. I look forward to seeing how these insights can benefit both businesses and rights holders alike. The partnership with Audoo was characterised by innovative thinking, fast action and values.”

Ryan Edwards, CEO and Founder of Audoo said: “Partnering with GEMA on this never-seen-before study is a testament to the power of real-world data in demonstrating the impact of music in public spaces, for both customers and business owners. We’re excited to see how these insights can shape the future of music licensing and we hope to work with more PROs and CMOs to deliver further data-driven research projects in the future.”

GEMA Music Impact Study – Gastronomy Sample

Overall Top Songs recognised by Audoo