One word can be used to sum up Internet radio in 2015. Growth. Higher numbers for listenership and advertising drove competition between labels and publishers. And, if you look at the top XAPP blog posts of 2015, you’ll notice it all comes down to money. It’s all about where advertisers are spending, royalty rates for streaming services, and what percentage labels are taking from their artists. Technologies like XAPPmedia’s Interactive Audio Ads help publishers increase revenue without increasing ad load, setting up 2016 to be another year of expansion for Internet radio.
1. Internet Radio is Bigger than Facebook. Look at the Data.
When many people think about marketing to mobile consumers, Facebook comes to mind. However, eMarketer data show that Internet radio is even more fertile ground. The analyst estimates that 12% of time spent with digital media will go to Internet radio this year while only 6% will be with Facebook. This is only half the story. Read more here.
2. Part 1: Spotify and Other Streaming Services are Saving the Music Industry
A report issued by the National Bureau of Economic Research concludes that, “interactive streaming appears to be revenue-neutral for the recorded music industry.” The summary conclusions don’t fit the industry trends prior to the study period or the math behind the data. For instance, music sales were declining before the introduction of streaming services. For the full analysis, click here.
3. Artists Should Blame Record Labels, Not Music Streaming
Last year, Taylor Swift caused a stir with her very public disagreement about royalties, leaving many with the impression that music streaming services are unfairly benefiting from musicians’ work. However, industry data emerged this year suggesting record labels are the real beneficiaries. Read the full summary of research analysis that supports this conclusion here.
4. Internet Radio’s Ad-Supported Present and Future
There have been a lot of comments in the media about Internet radio’s two preeminent revenue models: subscription and ad-supported. Data suggests that advertising is the present and future of Internet radio listenership, with 89% of Internet radio listeners favoring the ad-supported option over subscription listening. Read more about the future of ad-supported listening here.
5. IAB MIXX Awards for NPR and Mack Avenue Records – Video Case Study
IAB named the XAPP Ad for Mack Avenue Records artist Cecile McLorin Salvant as one of five finalists for the Mixx Awards honoring the top digital audio marketing work of 2015. The artist promotion ran on the NPR One mobile app and has been recognized for its innovative use of interactive audio technology which resulted in higher engagement rates. How much higher? The answer here.
Part 2: Spotify and Other Streaming Services are Saving the Music Industry
Video: XAPPmedia’s Pat Higbie Talks About Interactive Audio at Hivio
4 Charts Show Radio’s Future is on Mobile