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Part 4: Audio StreamingThe immersive experience of audio streaming is growing, and brands are finding new ways to integrate their offerings into platforms ranging from gaming consoles and podcasts to automobiles.
Part 4:
Audio StreamingThe immersive experience of audio streaming is growing, and brands are finding new ways to integrate their offerings into platforms ranging from gaming consoles and podcasts to automobiles.
Digital Trends:Predictions for 2019 and Beyond
A seven-part series brought to you by the Insight Lab at MNI Targeted Media Inc.mni.com
2For more strategic predictions go to mni.com, or email [email protected].
Consider this statistic—80% of U.S. adults currently use at least one audio streaming service. Moreover, over half of the daily time spent with audio services is with digital audio 1.
Traditional radio will remain in the game for nearly as long as people drive cars. Still, the number of people straying away from AM/FM channels and toward on-demand and digital audio platforms is on the rise. Given the constant need to stay connected, more people are plugging into digital audio via smartphones, tablets, and voice-activated technology.
While listeners across demographics use smartphones extensively to tune into digital audio, Millennials and Gen Z-ers are drawn toward services that allow
From Audio Streaming to a Sonic RevolutionThe era of Aural Renaissance is here, and it’s here to stay.
them to listen to their favorite music and audio files on-the-go, offline, and synced across all devices. They also give priority to services offering personalized music recommendations.
The implications of this audio revolution for marketers are plenty—think personalized in-stream audio ads, branded playlists, connected technologies, and beyond. One of the biggest audio-driven benefits for 2019 will be the availability of first-party consumer data—near-perfect audience data is picked up by digital audio platforms, which will enable better ad targeting and delivery, seamlessly blending ad and content into a singular sonic experience.
Digital Trends: Predictions for 2019 and Beyond [ Audio Streaming / mni.com
Music Streamers are
Source: Spotify, 2015.
2xOver 2x as likely to pay more for brands.
more likely to recommend brands to friends.
61%
more likely to describe a brand as “the only brand for me.”
74%
more likely to describe a brand as fun and playful.
70%
Source: eMarketer, September 2018
How Do U.S. Internet Users Listen to Music?(% of respondents, by demographic)
Radio Streaming music
services
MP3sDigital videos
Digital radio
Satellite radio
CD
18-34 35-54 55+
3Digital Trends: Predictions for 2019 and Beyond
[ Audio Streaming / mni.comFor more strategic predictions go to mni.com, or email [email protected].
Ad Tech Streams into Audio Digital audio is booming: 93% of radio ad buyers looked at programmatically purchasing ads on online music streaming services such as Spotify and Pandora in 2017 2.
The emphasis on brand-safe environments—particularly those with an abundance of freemium, ad-supported subscribers—will drive ad spending in digital audio. Brand safety in digital audio formats, such as podcasts and streaming music, is more easily attained. Audio offers a higher level of control to advertisers in terms of the quality and safety of the content as well as the demographics their ads are served to.
Podcasting is Growing in Popularity and Monetization Podcasts, already touted as the new Talk Radio, will witness a further surge in popularity, despite a less-than-desirable user experience and hard-to-find content for listeners, and thin measurement data for advertisers.
73 million people in the U.S were expected to listen to a podcast at least monthly in 2018, equating to over one-fifth of the U.S population. This figure will rise to 23.7% in 2020 4.
What to Expect in 2019
Digital Trends: Predictions for 2019 and Beyond [ Audio Streaming / mni.com
4For more strategic predictions go to mni.com, or email [email protected] Trends: Predictions for 2019 and Beyond
[ Audio Streaming / mni.com
marketing campaigns are intended to soft-sell a brand or its recent launch—some function as awareness campaigns, while others reinforce a brand’s image in consumers’ minds.
Calvin Klein and Reebok put together creative music collections to showcase new launches.
Bacardi collaborated with Major Lazer on the “Sound of Rum” campaign, which had an assortment of soundtracks to tell the brand’s story, for the launch of a limited-edition rum.
Brand ActivationAudio-focused brand activation budgets are set to grow, albeit slowly. In 2018, Nike created an immersive audio installation for its Air VaporMax sneaker, which generates unique soundscapes based on bioanalytics of the user’s skin temperature and environmental humidity.
Retail Staying PowerRetail audio environments are being revamped so customers stay longer in stores, which will lead them to spend more.
3D Audio3D audio music will no longer be a futuristic vision. Platforms such as YouTube VR and Facebook 360° enable user interaction with 360° videos that contain spatial audio. Brands who are serious about engaging their target audience with immersive experiences are sure to invest in these audio experiences.
Podcast Ads & Purchase IntentSince listeners are highly immersed when tuned into a podcast and usually don’t mind hearing ads, it is a strategic platform for advertisers to share their message. Sponsored podcast ads are typically kept to a minimum and are relevant to the program’s content, which are often read (voiced over) by the host. This builds greater trust and brand recall, both key measures of advertising effectiveness.
U.S. podcast ad revenues are predicted to cross the $500 million mark in 2019, a 28% increase over 2018’s revenues 4.
Winamp Comeback Winamp will stage a comeback, with a brand new update that will overhaul the service to compete head-on with modern streaming services. The player plans to bring together podcasts, streaming radio stations, and music under a single, cross-platform application.
Playlist MarketingPlaylist Marketing—with Spotify leading the way—will receive a boost, as brands identify creative ways to carve a space for themselves in the coveted audio environment. Such playlists are carefully curated, keeping in mind the brand or product’s theme, its target consumers, times of day the playlist is most likely to be played, and even the target audience’s possible mood. These audio-centric
What to Expect in 2019Audio Streaming[
Digital Marketing 101 [ Pharma / mni.com
Sources
[1] Pandora, 2018
[2] The Future of Programmatic Radio Advertising | WideOrbit & eMarketer | 2017
[3] U.S. Podcast Ad Revenues, 2017-2020 | eMarketer
[4] What’s Next For Voice Control? | eMarketer | 2018
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