New business models are forming around new audience behaviors supported by technology advances
CHANTILLY, Va. (April 16, 2014) – A new report by BIA/Kelsey shows that Internet Radio is changing consumer listening habits and the industry economics are starting to follow. Recognizing new opportunities to reach and engage with these audiences, national and local advertisers are shifting budget into Internet radio services. At the same time, new technologies such as Interactive Audio Ads are also emerging to take advantage of voice-activated consumer engagement and conversion opportunities. “The Internet Radio Revolution has Arrived” outlines how a combination of changes driven by platforms, services, audiences and advertisers is reinventing audio.
“Listening hours are moving quickly to Internet Radio and audio consumption as mobile opens up new possibilities for consumer engagement,” said Rick Ducey, managing director of BIA/Kelsey. “Shifts in consumer behavior are causing advertisers to set aside spending specifically for this channel. To take advantage of these new opportunities, Internet Radio is also leveraging new tools such as voice-activated, interactive audio ads that enable convenient in-ad conversions.”
For purposes of this report, BIA/Kelsey defines the Internet steaming audio market as streaming radio services such as Pandora or Spotify, and Broadcast Radio Station Streaming, whether simulcast or not. Either type of audio service may provide advertising supported audio services that may be linear.
BIA/Kelsey’s U.S. Consumer Commerce Monitor™ (CCM) research measures the advertising effectiveness of radio. The most recent survey shows that almost 30 percent of Americans cite broadcast radio as one of their top sources for making local shopping decisions. This choice paces ahead of digital channels like mobile deals, display, or social media.
XAPPmedia Chief Marketing Officer Bret Kinsella added, “At over $16 billion in revenue, radio is a large advertising market. As consumers migrate to Internet radio, billions of ad dollars are shifting to new audio platforms. Internet radio also presents new opportunities for two-way engagement and direct consumer conversion creating more value than traditional radio advertising. BIA/Kelsey’s analysis highlights the dramatic shift that is gaining momentum today.”
This new report, sponsored by XAPPmedia, highlights how these forces will redefine the Internet streaming audio market over the next generation and reviews the economics of the whole opportunity.
Chapters in the 23-page report include:
- The Audio Marketplace
- Reinventing the Audio Market
- Internet Radio Gets Serious
- The Audio Advertising Mix
- Shifting Economics of Audio Advertising
- Trends in the Audio Market
- The Shift to Internet Radio
- What Is the Listening Mix
- “Hands Free” Listening
- Advertising Efficacy
- Transcending the Small Screen
- Closing the Gap
- The Economics of Internet Radio
This complimentary report can be downloaded here: http://www.biakelsey.com/Research-and-Analysis/Reports/Sponsored-Research/The-Internet-Radio-Revolution-Has-Arrived.asp.
BIA/Kelsey Sponsored Research
BIA/Kelsey Sponsored Research is commissioned by companies that wish to spotlight areas of coverage around their expertise. BIA/Kelsey maintains full editorial control and applies its longstanding standards of editorial practice and objective market analysis. Companies interested in contracting BIA/Kelsey to cover a particular topic or profile sectors of local media innovation should contact email@example.com for more information.
BIA/Kelsey advises companies in the local media space through consulting and valuation services, research and forecasts, Custom Advisory Services and conferences. Since 1983 BIA/Kelsey has been a resource to the media, mobile advertising, telecommunications, Yellow Pages and electronic directory markets, as well as to government agencies, law firms and investment companies looking to understand trends and revenue drivers. BIA/Kelsey’s annual conferences draw executives from across industries seeking expert guidance on how companies are finding innovative ways to grow. Additional information is available at http://www.biakelsey.com, on the company’s Local Media Watch blog, Twitter (http://twitter.com/BIAKelsey) and Facebook (http://www.facebook.com/biakelsey). Stay connected by subscribing to the firm’s bi-monthly newsletter.
XAPPmedia™ is the leader in interactive audio advertising and is the first company to Give Consumers a Voice™ allowing instant connections with brands through mobile audio apps. XAPP Ads™ present branded content followed by an opportunity for consumers to interact with ads by voice to receive more content, be connected directly with offers or get back to more listening. Unlike other mobile ad formats, XAPP Ads are effective even when consumers are ultramobile, which means they are listening but cannot interact with a mobile screen visually or by touch. The immediate voice conversion opportunity brings more value to advertisers and increases ad unit yield for audio app publishers. XAPPmedia was founded in 2012 and is headquartered in Washington, DC. For additional information go to http://xappmedia.com.
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