Despite its relatively small share in the digital advertising space, internet radio is seen by advertisers as a lucrative platform for marketing their brands, stated a report examining the trend on the eMarketer website.
“Growth forecasts for internet radio advertising, though positive, are more modest than for other categories of digital ad spending,” stated the report. “Still, advertisers are eager to attach their brands to internet broadcasting and other music-streaming properties,” the report explained.
eMarketer noted that the top reasons advertisers head over to internet radio streaming platforms are because the ads allow their brands to capitalize on the publicity a particular genre or artist gets on the platform; the extent internet radio grows due to ads; and the influence of in-stream audio ads.
In-stream audio ads are those that rolls before, after or during an audio recording is playing. They are typically “harder to avoid or skip than other forms of digital advertising,” according to eMarketer.
An earlier joint study by MediaVest and Clear Channel Media and Entertainment revealed that some 41 percent of listeners said they can tolerate listening to ads as long as they get to stream online audio for free.
Additionally, the study revealed that ads relating to the audio consumers’ music preference and rolled out at the right times and tailored to the audio platform are most likely to influence the consumer.
Online audio platforms like Audioboo pre- and post-roll ads on its platform allowing its content partners to monetize from the ads.
A fairly new entrant in the market, Audioboo, which is owned by Audioboom Group PLC (BOOM.L) and is deemed as the YouTube of spoken word audio content, is rapidly attracting marketers from the digital advertising space.
It will soon get a boost in terms of ads following its partnership with Global Radio’s Digital Ad Exchange (DAX) platform.
DAX allows marketers to target the right audience for their brands on a particular platform from a single buying point.
In a related report, CEO of RAIN Enterprises and Audio4cast Founder Jennifer Lane noted that this year will become a profitable year for the online music streaming platforms as they focus on expanding their advertising space in tandem with third-party, ad buying points.
“2014 will be the year that the ad revenues see serious increases. Both established players like Spotify and Pandora, and new players like Apple, are putting substantial focus on streaming audio ads. Programmatic buying platforms facilitate ad buys,” Lane was quoted saying on the RAIN website.
“Major new players like Beats and YouTube will bring more attention to the space. The year ahead promises significant gains for streaming audio revenues,” she added.
A Nielsen report cited by RAIN notes that online music streaming soared by 32 percent to 118 billion in 2013, based on an analysis of various platforms.