Audio.ad will offer XAPP Ads® that enable mobile consumers of music streaming services and other audio apps to interact with advertising simply by speaking. Audio.ad will be XAPPmedia’s exclusive representative in Latin America and the U.S. Hispanic market.
Yesterday, we explored the numbers behind Spotify’s tremendous growth in subscription and advertising revenue counterbalanced by its shrinking gross margins. Today, we will discuss where all of that money is going.
Spotify recently released data showing that it had surpassed $2 billion in revenue with an 8.7% net loss. However, these were far from the most interesting data points that became public. The near doubling of advertising revenue, the fall in effective monthly revenue per user and the contracting margins are noteworthy.
Triton released its March 2016 Webcast Metrics Top 20 Ranker which showed a continued rise in Internet radio listening. This also represented the first month that Triton proactively broke out Average Active Session (AAS) growth rates for pure play and broadcast Internet radio and streaming services. While both showed strong year-over-year growth, broadcast showed a small decline since the beginning of 2016.
Internet radio audience has grown quickly. The industry commands somewhere between 600 – 900 million monthly listeners globally depending on which analysis you choose to cite. In the U.S., 57% of the population listens monthly and 50% weekly. The growth will allow Internet radio and streaming music services to capture an increasing share of the $42 billion in mobile advertising forecasted for 2016.
Yesterday’s MediaPost article discussed the listening habits of car commuters citing data from XAPPmedia’s Internet Radio Ad Load Report and Edison Research. The article specifically compares the channel switching behavior of AM/FM radio listeners to Internet radio listeners during a commercial break.