BIA/Kelsey: Net Radio Changing Listening Habits
April 16, 2014 at 10:54 AM (PT)
A BIA/KELSEY study, "The Internet Radio Revolution Has Arrived," found that consumer listening habits are being changed by Internet Radio -- and that 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.
"Listening hours are moving quickly to Internet Radio and audio consumption as mobile opens up new possibilities for consumer engagement," BIA/KELSEY Managing Dir. RICK DUCEY said. "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 most recent U.S. Consumer Commerce Monitor™ (CCM) research found that almost 30% 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. "At over $16 billion in revenue, radio is a large advertising market," XAPPMEDIA Chief Marketing Officer BRET KINSELLA added. "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 report can be downloaded here.