GroupM Next, a division of media investment management operation GroupM, has released a white paper on its predictions for the future of the Internet radio marketplace and streaming, consumer behavior and its implications.
The study found that Internet radio attracts listeners who are more likely on average to be younger and more affluent than those who primarily listen to broadcast radio. These listeners also take Internet radio with them everywhere, listening at work, home, the gym and on the go because of the ubiquity of connected devices. For users who also access the streaming services on a laptop or desktop, advertisers are also able for the first time to employ visuals such as graphics or videos with their ads.
They are also more likely to respond well to ads — they more frequently say they don’t mind the advertisements (and thus don’t actively avoid them). Internet radio listeners are also more likely to have purchased products that they have heard about on ads. Hypertargeted advertisements for specific demographics are also enabled with Internet radio, an advantage for advertisers that even exceeds the offerings of broadcast radio’s geo-targeting.
Internet radio itself was also shown to make cars more attractive to consumers. With a connected dashboard, those surveyed were more likely to be interested in buying the vehicle.
GroupM Next’s study also showed that the hype surrounding Apple’s iTunes radio has continued after the Worldwide Developers Conference, with many Internet radio listeners planning to switch services after its release in the fall.
To read more of the paper’s insights, go here.