Music streaming has gained extreme popularity, listenership and has evolved into a massive industry with billions of dollars going into this market each year. Music (or audio) streaming has become an essential part of everyday life for many of us and the COVID-19 pandemic has helped boost this industry with many staying home regularly listening to music and podcasts. Audio streaming is convenient, has a vast array of music and podcast options, millions of on-demand songs, and ways to discover new choices and genres – all from your mobile device. The key reason for music streaming market growth is driven by the expansion of mobile, specifically mobile advertising spending, use of mobile apps, and increased subscription services (such as Spotify, Pandora, and Apple Music to name a few). Even video platforms such as YouTube are also very popular for music fans. According to Business Wire, the global music streaming market is estimated to grow at a CAGR (Compound Annual Growth Rate) of 7.4% from 2020 to 2027, to reach $46.9 billion in 2027! There’s absolutely no doubt this media is exploding, but how can streaming radio ads help you grow your business?
Benefits of Advertising on Streaming Radio
With a strong and steadily growing listener base, streaming radio offers many significant benefits and features for advertisers. To start, many users subscribe to the free/unpaid versions on their platform of choice – and consumers are aware they will be receiving ads in exchange for free music, therefore ads are expected. Advertisers can reach their target audience whether they live in the local community or across the nation- wherever they are. So, how many people are listening? Around 176 million people (62% of the U.S. 12+ population) are now weekly online audio listeners – which is an all-time high for this media category. What makes these platforms so popular? According to Music Tech, for example, Spotify is considered the world’s most popular music streaming app with 70 million tracks, 2.2 million podcast titles, and 345 million users worldwide (Music Tech, May 2021). As of February 2021, Pandora reportedly has 70 million active listeners and 6.8 million paid subscribers. In addition, Apple Music has over 72 million premium subscribers. In addition to the number of users, most streaming platforms allow advanced targeting options. These targeting options enable you to reach the audience you want to speak to within your target demographic. Depending on the platform, advertising capabilities include country, city, state, DMA or MSA, and zip code targeting, age, gender, language, weather, genre, playlists, sponsored sessions, video, and display/clickable ads – you won’t miss your target audience! Additionally, streaming radio ads allow businesses to advertise affordably, making them a beneficial compliment to your overall media and marketing plan.
How Streaming Radio Ads Work
The main benefit of streaming radio ads is that you can reach listeners anytime, on any device (mobile, tablet, desktop, web, gaming consoles, connected TVs and cars, and even connected speakers), wherever they go – and they work! Streaming radio ads are effective because they engage the listener rather than interrupt them. Audio ads are served between songs/content while there are no distractions- so you have a captive and engaged audience ready to focus on the message being delivered. In addition, you can complement audio ads with display banner ads that entice users to act (such as visit your website, for example).
Streaming Radio Ad Formats & Best Practices
There are many different streaming radio ad formats and lengths. Examples include pre-roll (before the content), mid-roll (during the content), post-roll (after the content), live playback (often used in podcasts), audio sequencing (based on audience retargeting information) and branded audio streaming (sponsored web radio program). Recommended ad lengths vary depending on the message, advertising objective, and placement and can range from :05 – :60 seconds in length. To have your message received in the manner it is intended, it is important that your radio ads are high-quality and are produced with messages that are personal to the listener. Radio ads must be creative, memorable, and entertaining while establishing attractive offers that elicit easy purchase decisions or user interaction. One important criterion for radio ads is to remember that listeners may not have their screen on and therefore calls to action need not rely solely on screen activation or companion banner interaction. Ultimately, the bottom line is the radio ad needs to stand out and resonate with the listener you are trying to engage so that it is both memorable and effective! The end game: High-quality streaming radio ads paired with a well thought out media plan and placements can bring advertisers the results they are looking for.
If you have questions about or need help with streaming radio campaigns for your business, let Brand Ranch Media help! We have a state-of-the-art production studio and years of experience in the radio industry. We would love to give your marketing efforts a little boost and help you obtain the results you are looking for! Please feel free to give us a call at 713-309-6380 or reach out with our online contact form.