In-stream audio advertising remains ripe with marketing opportunities according to research
As online music streaming continues to dominate the market research from Forrester and analyst Anthony Mullen reveals that marketers are still missing out on revenue from in-stream audio advertising opportunities.
According to Forrester data based on 58,000 responses, 28 per cent of US adults and 17 per cent of EU adults stream music on their PCs and mobiles. Only six per cent of US respondents were willing to pay to access online streamed radio, with the lion’s share using freemium and ad-supported models.
“Advertisers and marketers are largely stuck on preconceptions of over-the-air (OTA) and haven’t understood the unique opportunity for marketing within streaming services,” writes Mullen in his online blog. “It is data-rich and, unlike visual advertising, doesn’t fight for consumers' attention, with a single stream active at one time.”
According to Mullen in-stream audio advertising remains ripe with opportunity though it still largely underinvested in despite providing ROI.
He adds: “Over the past few years, it has matured to the point where it is part of standard campaign efforts, available through exchanges and even integrated into RTB platforms…for those looking to get into advertising traction on the difficult medium of mobile, in-stream audio is a particularly good method, with subscription models making opt-in advertising as part of the deal.”
In his research Mullen explores why in-stream advertising offers such a unique opportunity to advertisers, particularly in mobile, highlighting that in France 15 per cent of those surveyed stream on a computer but 27 per cent use mobile and that mobile streaming is likely to be the one trend that will continue worldwide with metropolitan regions of Hong Kong, Mexico and South Korea using mobile as their preferred listening method.