The number one digital advertising topic of 2016 is shaping up to be ad-blocking. It should be noted that most music streaming services rely primarily on audio ads which avoid the viewability problem of ad-blocking altogether. So if the audio is streamed, impressions are delivered. As a result, audio ads are less likely to be victims of ad-blocking technology.
Radio broadcasters have long considered the experience of live and local to be their greatest asset in attracting and maintaining audience. That experience is too often undermined by long stopsets of advertisements that motivate listeners to choose another station or another audio channel altogether.
With a new year upon us, Radio World interviewed CEO Pat Higbie on the future of Internet radio in 2016. As the Internet radio audience continues to grow, so will the interest of national advertisers. With a large amount of consumer attention and advertising revenue at stake, Higbie predicts competition will be fierce for both.
One word can be used to sum up Internet radio in 2015. Growth. Higher numbers for listenership and advertising drove competition between labels and publishers. And, if you look at the top XAPP blog posts of 2015, you’ll notice it all comes down to money.
Yesterday, the U.S. Copyright Royalty Board (CRB) raised royalty rates for Internet radio streams from 0.14 cents to 0.17 cents per song played. The 21% royalty increase takes effect in 2016. Future rates will rise annually between 2017-2020 based on the Consumer Price Index. Who is impacted by the rate change?
The Internet Radio Ad Load Report for Q3 2015 showed a small growth in advertisers, but a reduction in the frequency of the top advertisers. The spots are getting spread around among more advertisers. In Q3, Retail and the combined Media, Entertainment & Gaming (MEG) group were again the top two industries represented in Internet radio ads.
A pair of recent articles in the New York Times and Music Business Worldwide focus on the story of Perrin Lamb, a part-time singer-songwriter from Nashville. Mr. Perrin was an unknown, unsigned artist before landing on a popular playlist on Spotify.
Every few months a naïve journalist gets misled by a false narrative pushed by someone in the recording industry. Last winter it was the New York Times. More recently, Business Insider fell into a similar trap with its headline: “The music industry has made more money in 2015 from a century old technology than ad-supported streaming.”
If you attended Advertising Week this year you couldn’t avoid sessions devoted to millennials, mobile and … audio. Yes, it’s true. Audio is back and hip enough to get attention at the advertising industry’s largest gathering.