Local radio companies continue to invest new ways to help their clients reach the growing digital audience. But, they continue to do well in the traditional ad market as well. BIA/Kelsey analysts report that these companies are winning the battle against new national upstarts by broadening listener experiences. They’re also expanding the types of opportunities that are available to advertisers. In 2014, radio operators will continue to lean heavily on key industries to maintain their share of the local ad market.
Does ad-supported digital-music streaming radio pose a threat to traditional networks? It’s worth considering this question as more competitors crowd the field. Pandora, Spotify, iTunes Radio and iHeartRadio are all courting audiences and marketers. Their move to grab local revenue could change the radio industry.
Radio has long been the perfect medium to reach consumers who are captive in their cars – commuting, carpooling or running errands. But an increasing number of consumers are discovering Internet radio and listening in a wider range of venues. As this audience grows, marketers are taking notice.
Last week I blogged about the rising ad sales in the radio industry in 2012. Marketers are right to put part of their ad budget in this format. New research shows the format’s biggest impact may come from its ability to connect with shoppers immediately before they visit stores.
Advertisers continue to find growth in the radio format. After coming off of a strong year in 2011, radio revenues are still rising. Sales in digital and off-air are fueling the channel’s growth. And, specific advertising sectors are responsible for much of the increased demand.
Radio stations have long struggled to find a business model that will deliver revenue in the digital arena. Consumers are ready to use their mobile devices to listen to radio in new ways, a trend which explains the popularity of Pandora. But Pandora doesn’t own the digital radio market and new competitors hope to mark their mark and unlock more revenue for stations and their reps.
Radio continues to draw a crowd. That’s especially true for marketers that want to reach the Hispanic demographic. The latest numbers from Arbitron’s RADAR report show reason for optimism in one of the most traditional media formats.
Last month, I highlighted a couple of studies that pointed out the difficulties faced by traditional radio stations when it comes to garnering more digital revenue. A new service being rolled out by Jelli, a company that delivers user-controlled radio, may change the way spot radio works and build digital revenue for radio stations. This service is available now for national spots but may soon be used by local marketers as well.