If you asked someone what Pandora was two or three years ago, the unanimous answer may have been a jewelry chain. Now, if you ask that question, most people will say an Internet radio service. When it comes to listening to music, it’s my go-to. Even as I write this blog post, Pandora’s 90’s channel is blaring in the background.
Ad-supported listening has removed the cost barrier and made it easy for consumers to access the music they want to hear. Brands like Spotify, TuneIn, Apple Music and Slacker have joined Pandora in what some industry professionals are calling the “audio renaissance.” Besides offering endless entertainment for users, Internet radio provides a very exciting advertising opportunity for brands. What’s better than reaching users and getting their undivided attention in times you couldn’t reach them before.
In the 2015 Internet Radio Trends Report, XAPPmedia looked at some trends that make advertising on Internet radio a no-brainer.
An increase in users & time spent listening
- eMarketer reported in 2014 that U.S. monthly digital radio listeners had grown to 160 million. That is over 50% of all U.S. citizens and 63% of Internet users.
- The audience is expected to grow to 183 million by 2018, significantly outpacing population growth.
- Nielsen reported in January 2015 that 67% of all music listeners access streaming services in a typical week.
- According to Pandora, 1.7 billion hours are streamed each month in their service. YouTube averages 1.9 billion hours per month.
- Users spend 22.5 hours per month on Pandora on their mobile phones – 1.5 hours more than on Facebook.
- 44% of listeners said Internet radio was displacing time formerly dedicated to AM/FM broadcast radio, according to an Edison study.
A shift in where and when users are accessing music
- 2/3 of 18-34 year-olds listen to online radio monthly.
- Edison Research released data that shows 13-17 year-olds’ report listening to more streaming audio than AM/FM broadcast radio.
- Only 5% of streaming radio is now spent via computer. Compared to other content categories including social media and games, it was the most used on smartphones and tablets.
- A study by Nielsen shows that 79% of music listening is consumed while multi-tasking.
- The majority of people are listening to Internet radio in their car or at the office.
If it wasn’t clear from all the stats above, the Internet radio industry is here to stay and will provide value for advertisers for many years to come.
Although Pandora is a definite leader in the advertising space, many internet radio providers offer a lot of different opportunities including sponsored listening, branded stations, display, amplified digital and experiential events for brands to choose from.