Consumers are becoming more comfortable with the idea of online music streaming. However, few music lovers feel they can justify the expense of an ad-free subscription to their favorite service. This situation makes the format attractive to advertisers according to Anthony Mullen at Forrester.
A Forrester study of over 58,000 consumers reveals that 28% of U.S. adults are streaming music for at least some part of each day. Typically, these consumers listen on their PCs or mobile devices. A much smaller group, 6%, is willing to pay for access to this content. The remaining consumers comprise an attentive audience for marketers. And, this audience is likely to grow. An NPD Group study found that consumers between the ages of 13 and 35 are more likely to stream music than to listen to FM radio.
Mullen notes that the streaming music format failed to take off with advertisers at first. Analysts see a big future for the format, now. More marketers are including the streaming music in media buys that often combine several digital components like mobile or social. Mullen says in-stream audio, “is data-rich and, unlike visual advertising, doesn’t fight for consumers' attention, with a single stream active at one time.”
Key contenders in the market include Spotify and Pandora. Google has its own product, All Access, but the company doesn't offer a freemium version.
If you've been working with marketers on their media mix, have you included in-stream audio?[Sources: Sydell, Laura. Google Launches A Streaming Music Service. Npr.org. 15 May 2013. Web. 13 Aug. 2013; Mullen, Anthony. In-Stream Audio Advertising. Forrester.com. 31 Jul. 2013. Web. 15 Aug. 2013]