Report: Internet Radio Ad Load Climbs, Advertisers Increase, Local Spots Up

Xapp Media

Internet radio ad load on mobile climbed in Q2 2015, but still trails Q4 2014 levels at the height of the holiday advertising season, according to a report issued by research company XAPPMEDIA.COM.

Whereas Q1 2015 experienced a 16% decline in ad load over the previous quarter to an average of 2 minutes 18 seconds, Q2 2015 is up 10% sequentially to an average of 2 minutes 32 seconds. The seasonal fall in ad spending and an inventory sell-through problem impacted the first quarter and that, plus a rise in advertisers, has resulted in Q2 increases.

Ad load increased markedly even within the quarter with JUNE, reaching 2:43, the second highest rate recorded, trailing only DECEMBER 2014 when there were 2-3% fewer listeners than today. As a result, total ads served in JUNE were on par with DECEMBER.

The second significant change is an increase in the number of advertisers on the five Internet radio publishers tracked. Advertisers in Q2 totaled 149, a 26% rise over the previous quarter and the largest quarterly total to date. Unique advertisers identified each month ranged from 67 in APRIL to 82 in MAY.

More advertisers moving into Internet radio may help offset current inventory sell-through challenges caused by competition with other advertising channels and the steady growth in users and listening hours that yields an ever-increasing number of ad slots to sell.

The number of local advertisers nearly doubled from the previous quarter. In Q2, 21% of advertisers identified were local, up from 15% in Q1. This trend suggests Internet radio publishers are clearly making an effort to broaden the advertising base beyond national advertisers.

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