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XAPPmedia Issues Internet Radio Ad Load Report
RADIO ONLINE | Friday, February 20, 2015 |
The latest Internet Radio Ad Load report from XAPPmedia explores how four leading Internet radio services were managing and filling ad inventory during and immediately after the 2014 holiday shopping season. The data collection started in November, 2014 before Black Friday, continued again in December, 2014 before Christmas and then concluded in January to provide a post-holiday point of comparison.
The results showed that the number of advertisers identified rose between November and December and then dropped in January. The difference is a much steeper climb in advertisers after Black Friday in the heart of the holiday shopping season. This increase in advertisers likely contributed to the increase in ad loads.
Additional key findings showed:
- 101 different advertisers were identified On one radio service there were 50+ advertisers identified while the other three averaged only 22 advertisers during the same period The majority of advertisers or 87 percent, appeared on only one of the radio services while 10 percent were identified on two services and 4 percent on three No advertisers were found on all four radio services There is little doubt that Internet radio and broadcast radio are competing for ad dollars and relevance with top audio advertisers
Media commentator Greg Satell of Digital Tonto offers this explanation that he characterizes as Media's Golden Rule: "Marketers are willing to pay more for consumers than consumers are willing to pay for content. This rule appears to apply to 89% of Internet radio listeners. Consumers have a wide variety of payment options with most ranging from $4.99-$9.99 per month. These services all offer adfree listening and typically include other features such as on-demand track selection. Despite these benefits, most consumers choose to listen to ads as their cost of using Internet radio services.
The analysis considered more than 10 metrics related to Internet radio Ad Load. Some of these metrics and findings include:
- Average Ad Load Per Hour (minutes), 2.69 Average Number of Ad Units Per Hour, 6.45 Percent of Ads that Were 30-Seconds, 77% Number of Identified Advertisers Per Month, 29-57
There is also a strong bias toward the traditional 30-second ad format, although the services differ on whether and how often they serve ad blocks as opposed to single ads. Also, the seasonal trend is evident in the results showing a rise between November and December followed by a January fall. This finding would appear to follow convention, but it is the first attempt we are aware of to quantify the change across a number of different Internet radio providers.
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