Thursday, February 7, 2013

Internet Radio's Audience Turns Marketer Heads

Despite small audience, internet radio ads have a special appeal to marketers

The internet radio audience is growing thanks to shifts in consumer listening behavior from terrestrial radio to streaming stations, according to a new eMarketer report, “Internet Radio: Marketers Move In.”

Users are embracing internet radio on a growing range of devices, from PCs, smartphones and tablets to automobiles, connected-home appliances and other gadgets.

Internet radio is monetized primarily by advertising, but the industry is a small player within the digital advertising ecosystem. Growth forecasts for internet radio advertising, though positive, are more modest than for other categories of digital ad spending.

Still, advertisers are eager to attach their brands to internet broadcasting and other music-streaming properties. There are several reasons for this, among them: the appeal of associating a brand with a particular genre or artist; the extent to which internet radio is driven primarily by ads; and the appeal of in-steam audio ads, which are harder to avoid or skip than other forms of digital advertising.

In 2013, the number of US internet radio listeners will grow by 11.1% to 147.3 million. Expansion will continue for the next several years, though rates will taper off to single-digit percentages.

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