25 Feb Internet Radio Has a Special Appeal to Marketers
According to a new eMarketer report, “Internet Radio: Marketers Move In” the Internet radio audience is growing. Shifts in consumer listening behavior from terrestrial radio to streaming stations have users embracing internet radio on a growing range of devices.
Internet radio advertising currently is a very small portion in digital spending budgets, yet advertisers seem eager to attach their brands to Internet broadcasting. In-stream audio ads are harder to avoid or skip than other forms of digital advertising, making them more effective.
In 2013, the number of US Internet radio listeners will grow by 11.1% to 147.3 million and will continue to expand for the next several years.
Most of the dollars that fuel the Internet radio industry come from advertising, followed by a smaller percentage that stem from subscription fees.eMarketer estimates that internet radio ad spending in the US will reach $970 million in 2013 and grow to $1.31 billion by 2016.
These figures are benchmarked from the Radio Advertising Bureau (RAB), which defines digital as follows: “All revenue derived from the [radio station] web site including banner ads, tile ads, pop-up ads, internet/web streaming and dedicated streaming advertising, eCommerce, text and email messaging, other mobile media, and web-affiliate relationships (local or national).” The RAB also includes HD radio in its definition of digital.
One challenge marketers face is that ad inventory on these services is limited. Subscribers see no ads at all, and users who opt for free, ad-supported tiers generally do not tolerate heavy ad loads.
To overcome these obstacles, Internet radio streaming services will need to continue growing their audiences, diversifying into new venues and innovating unique and fresh ways to work with marketers.
You can read more about this appeal at http://www.emarketer.com/Article/Internet-Radios-Audience-Turns-Marketer-Heads/1009652#mwo5JzpFh0qUR0fk.99