Last week, XAPPmedia released the 2015 Internet Radio Ad Load Report and there is an entire section on the advertisers themselves. In 2015, the XAPPmedia sample identified 406 distinct advertisers across five leading Internet radio apps. This reflects growth of more than 5x over what we identified in Q4 2014. Leading the pack of these 400-plus advertisers in spot load for 2015 were The Home Depot and GEICO.
XAPPmedia today published the Internet Radio Ad Load Report Q4 2015. Total advertisers identified through 2015 rose to 406, a 5.4x increase over 2014. Average ad load across the five tracked audio publishers rose 5.7% to 2 minutes 29 seconds (2:29). While ad load seems to oscillate around the 2.5-minute mark each quarter, the total advertiser count continually rises.
Royalty payments are the single biggest cost for Internet radio and audio streaming services. The question for observers of industry data is whether Soundexchange royalty collections are a good barometer of industry health and the revenue that Internet radio delivers to artists.
The Financial Times reported over the weekend that Apple Music has reached 10 million subscribers. This trails what The Verge estimates is over 25 million Spotify subscribers, but represents impressive growth just six months after launch. It is interesting to consider the different user acquisition strategies used by the leading music streaming services.
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?
Consumers are now conditioned to watch television and listen to audio on their own schedule. This has introduced the term known as "time shifting" and changed the way the industry thinks about ratings and audience.
Inside Radio ran an article today on the Advertising Week panel organized by XAPPmedia. The article concludes that while Internet radio has expanded quickly there is still more room for growth and that presents big opportunities for advertisers. Quotes from iHeartMedia, Triton Digital and XAPPmedia.
The Q2 Internet Radio Ad Load Report recorded that advertisers grew 26% over the first quarter of 2015. While the rise in the numbers of advertisers occurred broadly across industries, the automotive and education segments led the growth.