Traditional music ownership models benefited tremendously from the ubiquitous ad-supported listening on broadcast radio. Ad-supported listening on Internet radio is the logical complement to the on-demand subscription model and will be the much larger platform for music exposure to consumers and a larger revenue source for artists.
What do industry insiders think are the most important issues and trends facing Internet radio and streaming services? Advertising. You can see this clearly in answers to two of the questions from a recent survey of over 200 people working in the industry.
Last week, Mobile Marketer published an article about the current state of Internet radio advertising. Michael Barris calls out advertisers and marketers for missing some of the key dynamics involved in the audio experience. He applauds innovators such as NPR for use of tactics that are more conducive to the consumer experience, such as XAPPmedia technology.
This past fall there were a lot of comments in the media about Internet radio’s two preeminent revenue models: subscription and ad-supported. Recent data from Strategy Analytics and reported by RAIN News suggests that advertising is the present and future of Internet radio listenership.
Advertising is quickly becoming the primary economic engine for Internet radio and music streaming services. However, there is very little data available on how the industry is implementing its ad serving strategies. To fill this gap, XAPPmedia collected data between November 2014 and January 2015 to shed light on Internet radio ad serving practices over the winter holiday shopping season.
Data from numerous sources is delivering the same verdict: Internet radio and streaming services are mobile channels. While some listening still occurs on desktop, Internet-based audio consumption has migrated overwhelmingly to mobile devices. We all probably suspected this and the data increasingly supports this conclusion.
A recent survey by financial analysts at OTR Global presents a positive outlook for advertising on Internet radio and Pandora in particular. These findings align with other predictions for Internet radio advertising in 2015.
Interactive Audio Ads were introduced to the world on April 8, 2014. Since then, advertisers as diverse as Amazon, Ford, Cleveland Clinic, Fox Searchlight Pictures, StubHub, SmartCar, Columbia University and others have adopted the solution. What were the results? Conversion rates far higher than other mobile advertising formats.
XAPPmedia CEO Pat Higbie shares his Internet radio predictions for 2014 with MediaPost in an article published today. He predicts a lot of changes and growth when it comes to advertising in internet radio.