Digital audio has increased in popularity over the last few years. Companies like Spotify have changed the landscape of audio streaming, which in turn has changed the demand for programmatic audio, also known as audio advertising.
With digital audio’s increase in popularity, many people have made the switch from radio advertising to programmatic audio. Although traditional radio does have its pros, there has been a decline in local radio.
LOCAL RADIO IS DECLINING
- Over the past five years, total local air time sales have declined 21% in Canada’s five largest English Radio markets.
- From 2018 to 2020 the amount of people who listened to the radio in the past month dropped 5%*
- Canadian Digital audiences for RadioPlayer.ca have declined 21% over the past 2 years.**
- Most radio operators (Rogers, NewCap, Corus, Evanov, Cogeco) use RadioPlayer.ca to stream their content online. According to Comscore, total monthly usage varies between 300k-450k and has not shown growth in the past year.
*Source: Vividata Spring 2020 vs. Vividata Spring 2018
**Source: Comscore Canada MultiPlatform, Sep 2019-Aug 2020 vs. Sep 2018-Aug 2019
Source: CRTC data collection, Numeris
Radio pricing bases are on assumed surges in morning and afternoon rush hour listeners. With digital audio, you can skip the premium price and reach your desired audience throughout their day for one constant rate. It also enables you to reach the fastest-growing audio listening market. Target the right people, at any time, on any device.
As well, there isn’t an option for the user to convert quickly and easily. On Spotify, there can be a visual component to the ad. These are called Companion digital display ads which are paired with digital audio ads to offer advertisers a chance to see and click on the ad. The end-user can now easily take immediate action if they are interested in the product or service.
While traditional radio continues to decline or stays stagnant, online streaming platforms such as Spotify or Google play continue to grow in popularity. Spotify alone has over 250 million listeners across more than 75 countries worldwide, which makes it such a lucrative platform for advertisers. With digital audio you can geo-target your advertising, meaning you can target an exact location, from a city, province, or even country. Reaching your target market in your target area.
ONLINE STREAMING IS GROWING
- Canadians streamed 59 billion songs in 2018, a 47 percent increase from the year before
- Millennials consume 42% of their music through streaming.
- Streamers listen to music for longer, 44 hours per week vs. 32 hours for the average Canadian.
- 54% of Canada’s most popular streaming site’s user base opted for the ad-supported model versus the premium ad-free version.
- Spotify has maintained a significant lead in total subscription base versus Apple Music and Google Play, while competitor Pandora has not entered the Canadian marketplace.
Sources: http://www.nielsen.com/ca/en/insights/reports/2017/nielsen-music-360-canada-report-2017.html
Digital audio combines what you love about traditional radio advertising with the benefits of digital advertising, including accountability, detailed reporting, and accurate targeting.
DIGITAL AUDIO IS THE BEST OF BOTH WORLDS
- More accurate demographic targeting
- Managed reach & frequency
- Accountability
- Reach non-radio audiences
- First mover advantage
- Smaller commercial islands & fewer competitors
- Easier campaign budgeting
- Geo-targeting capabilities
Just like traditional radio, digital audio ads should be part of your more extensive marketing campaign and not your only tactic. Making the switch from a more traditional approach, you won’t be restricting your audience and advertising budget only by musical genre. Digital Audio Advertising offers you the ability to target users by demographics, geography, and even mood or activity to maximize the impact.
