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BIA/Kelsey Says Advertisers Shifting to Internet Radio

Internet radio “hands-free” use creates listening where it didn’t previously occur

Recognizing new opportunities to reach and engage with audiences, national and local advertisers are shifting spending to 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.

BIA reaches those conclusions in a new study commissioned by interactive ad company XAPPmedia. “The Internet Radio Revolution Has Arrived” outlines how a combination of changes driven by platforms, services, audiences and advertisers is reinventing audio.

For the 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 might be linear.

Internet radio services have “hands-free” use cases that create listening where it didn’t previously occur, or where it may have been constrained for one reason or another, according to the report results.

These use cases range from 14% to 24% adoption by streaming audio listeners and include listening environments such as the car, gym, public transportation or walking around, according to BIA/Kelsey and Edison Research. “An open question is how effective will advertising on mobile devices be when listeners can’t see the screen to interact with offers,” according to the report.

Click here to download the report.