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    Default Internet Radio Changing Listening Habits

    From Radio Online:

    A new report by BIA/Kelsey shows that Internet Radio is changing consumer listening habits and the industry economics are starting to follow. Recognizing new opportunities to reach and engage with these audiences, national and local advertisers are shifting budget into Internet radio services. At the same time, new technologies such as Interactive Audio Ads are also emerging to take advantage of voice-activated consumer engagement and conversion opportunities. "The Internet Radio Revolution Has Arrived" outlines how a combination of changes driven by platforms, services, audiences and advertisers is reinventing audio.

    "Listening hours are moving quickly to Internet Radio and audio consumption as mobile opens up new possibilities for consumer engagement," said Rick Ducey, managing director of BIA/Kelsey. "Shifts in consumer behavior are causing advertisers to set aside spending specifically for this channel. To take advantage of these new opportunities, Internet Radio is also leveraging new tools such as voice-activated, interactive audio ads that enable convenient in-ad conversions."

    For purposes of this report, BIA/Kelsey defines the Internet steaming audio market as streaming radio services such as Pandora or Spotify, and Broadcast Radio Station Streaming, whether simulcast or not. Either type of audio service may provide advertising supported audio services that may be linear.

    BIA/Kelsey's U.S. Consumer Commerce Monitor (CCM) research measures the advertising effectiveness of radio. The most recent survey shows that almost 30 percent of Americans cite broadcast radio as one of their top sources for making local shopping decisions. This choice paces ahead of digital channels like mobile deals, display, or social media.

    XAPPmedia Chief Marketing Officer Bret Kinsella added, "At over $16 billion in revenue, radio is a large advertising market. As consumers migrate to Internet radio, billions of ad dollars are shifting to new audio platforms. Internet radio also presents new opportunities for two-way engagement and direct consumer conversion creating more value than traditional radio advertising. BIA/Kelsey's analysis highlights the dramatic shift that is gaining momentum today."

    A free copy of this report can be downloaded here.

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