Combining Mobile and Radio can lead to a better ROI for the Advertisers. The growing Smartphone population is not something to be ignored. In Europe, smartphones overtook feature phones in 2011, with the same expected globally next year.
People are spending much more time on Apps rather than browsers on their devices. Unlike the desktop, where search is a great way to look for anything, specific bookmarks or apps are the way to go with mobiles. There is also an increase in the number of average apps per device. In the US, 56% of Smartphone Owners Have Downloaded Any Audio App with top 3 being Pandora, iHeart and the stations own app.
Radio continues to hold its own. And this is not just in terms of the number of people listening but also the average listening hours. A study by Edison and Arbitron found, not surprisingly, Radio is the media predominantly consumed before arriving at a store. It is a media that can be consumed while on the move. What is also interesting is the high response rates of follow up actions to Radio commercials, with almost half having responded to a radio ad.
RAB’s study on the impact of Radio advertising found that the average RoI from Radio is over 7 pounds. And adding radio to the campaign mix has a positive impact on the overall RoI of the campaign. there are number of factors why Radio tends to be having these positive impact. Radio is the closest thing to personal (mobiles have taken that role now) and has a strong emotional connection to the listener – which contributes to this impact.
Users tend to click more on ads and brands that are locally and otherwise relevant. The personal nature of the mobile device makes it possible for advertisers to serve ads that are likely to be acted upon more.
In a study in the US, it was found that 60% of Internet users have listened to Internet radio. Mobile is about half of that, according to various reports. Which is in line with the UK stats too – where in about 24% have listened to radio via their mobile. These stats exclude the music streaming apps, which are growing rapidly.
The trends are clear for Internet radio growth and advertising. The market is in the early phases but given the trends in mobile adoption and its effectiveness – this is definitely the area of growth.
It is not just about the volumes, but the impact of Digital Audio too. Internet radio has seen increased response rates consistently. This is a great opportunity to increase your ROI, is doable today and is waiting to be exploited.
If you found this week’s update interesting feel free to join our mailing list or donate a share, like or tweet. Subscribe to our newsletter to get our update into your mailbox. If you are a broadcaster, or advertiser and are interested in learning how targeted audio advertising can work for you get in touch.
Exaget Team
Twitter – @Exaget
Facebook – Exaget
If you found this month’s Infographic interesting feel free to join our mailing list or donate a share, like or tweet. Subscribe to our newsletter to get our update into your mailbox. If you are a broadcaster, or advertiser and are interested in learning how targeted audio advertising can work for you get in touch.
Exaget Team
Twitter – @Exaget
Facebook – Exaget
The IAB (Internet Advertising Bureau) has been working with PwC (PricewaterhouseCoopers) since 1997 to survey the value of the online advertising market. Their figures have become the industry standard for measuring advertising spend. 2008 was the first year that IAB and PwC surveyed the UK mobile market Ad spend.
2008:
The research found that in 2008 UK Mobile ad spent accounted for £28.6 Million. This was a year on year (YOY) growth by +99.2% (2008 vs 2007).
IAB and PwC forecasted further growth in mobile advertising with decline in traditional media in 2008.
2009:
In 2009 things started getting interesting as even after UK’s GDP dives to – 6% YOY in Q2 2009, UK showed the fastest growth in smartphone market, with 24 % of the UK using smartphones was a YOY growth by +70% (2009 vs 2008). 2009 saw the biggest decline in overall ad spend since records began.
The research found that in 2009 UK Mobile ad spent accounted for £37.6 Million despite worst year on year record for advertising. This was a YOY growth by +32.2% (2009 vs 2008) (like for like).
“Despite the tough economic climate in 2009, we have seen many brands spending on mobile for the first time indicating the growing importance of this channel in reaching a large engaged consumer audience with the right message in the right place and at the right time” – Ed Laws, Director, Yahoo! mobile marketplace, EMEA.
2009 gave a positive indications for 2010 and still plenty of room for growth.
2010:
In 2010 UK had a mobile revolution with smartphone growth by 58%. With more engaging adverts, Geo-Location and brands building their mobile strategies. Mobile ad spent in 2010 accounted for £83 Million. This was a YOY growth by +115.9% (2010 vs 2009) (like for like).
Alex Kozloff (Mobile Manager, IAB UK) predicted that “2011 is the last chance brands have to do mobile before they are too late.”
2011:
With 5.5million mobile internet users in 2011 and 24% out of them buying via mobile, mobile advertising turned out to be an essential platform for marketing. Mobile ad spent in 2011 surpassing all the forecasted numbers accounted for £203.2 Million. This was a YOY growth by +157% (2011 vs 2010) (like for like).
There is not much change in the breakdown (%) when we compare 2011 and 2010. Since 2010 advertisers have given more emphasis on mobile search adverts as 13.4% of paid search clicks came from mobile. Larry Page (CEO,Google, 13/10/11) said that “We’re also seeing a huge positive revenue impact from mobile, which has grown 2.5 times in the last 12 months to a run rate of over $2.5 billion.”
2012:
In 2012 UK’s Digital ad spend which includes Online, Mobile and Tablet all together accounted for £5.416bn which was an increase of £607m (+12%) YOY. Out of the total digital ad spend, Mobile ad spend was £526m, which was a YOY growth of 148% (2011 vs 2012 like for like)
The Total mobile ad spend (£526m) breakdown showed similar figures of that of 2011. This stability of breakdown suggest that the advertisers had found a formula for an effective mobile advertising campaign.
H1 – 2013:
In the first half of 2013 the total digital ad spend has reached £3.014bn, this is 17.5% increment compared to first half of 2012. Total mobile ad spend in H1 – 2012 was £188.1m. In H1 – 2013 it has already reached £429.2m which is a YOY growth of 127% (H1 – 2012 vs H1 – 2013)
Mobile ad spend is now 14% of the total digital ad spend. It is predicted that Mobile to reach nearly £1 billion and 16.5% of digital ad spending this year in the UK. (Source)
The growth in mobile advertising spend in the UK shows no signs of abating, and should represent nearly one-quarter of display spending and more than one-fifth of search by 2014, according to estimates from media investment management firm GroupM. (Source)
Methodology used for this survey:
Display figures are not adjusted to account for organisations that have not participated
The display figures are drawn up on the basis of site declaration and have not been not verified
Search figures are estimated through modelling and industry estimates
Total advertising revenue is reported on a gross basis
Only media spend reported to ensure fair comparison to other media including display ads such as banners, pre/post roll and in game, in sms/mms and search ads
Figures do not include SMS / MMS production and delivery costs, and other mobile marketing revenues
If you found this week’s update interesting feel free to join our mailing list or donate a share, like or tweet. Subscribe to our newsletter to get our update into your mailbox. If you are a broadcaster, or advertiser and are interested in learning how targeted audio advertising can work for you get in touch.
Exaget Team
Twitter – @Exaget
Facebook – Exaget
Mobile advertising is well on its way to being an integral part of the marketing conversation for most companies. The fact that so many people have smartphones and are somewhat addicted to them is enough to make any marketer giddy with excitement.
In 2012, $10 billion in sales were made through mobile channels. That’s expected to rise to $30 billion by 2016. In addition, 55 percent of smartphone owners use their smart phones to research purchases. Those numbers have mobile app developers and advertisers salivating. But they need to focus on real opportunities and not false hopes. (source)
Mobile audio features within applications represent an enormous and largely unrealized opportunity for both mobile developers and their brand partners. With more than a million apps in the app stores, only a fraction offer premium audio experiences and even fewer incorporate audio advertising.
Until now mobile radio has failed to take advantage of the inherent advantages of smartphones – Internet access, GPS, connectivity, reach and personal ownerships. Imagine being able to target customers with offers specific to their demographics, current location and time of day. Such flexibility in targeting allows for a very high ROI.
For e.g.: Imagine you have had a busy morning at work. You go outside to get your lunch, listening to radio on your phone you are walking down the high street, confused what to eat today as there are so many options right in front of you and just when your favourite song finishes you hear an audio advert “Confused about what to eat for lunch today?, why don’t you come to Pizza Hut and try our new lunch menu? “ And then you realise that you are standing right outside a pizza hut store.
Exaget enables broadcasters to connect with their listeners like never before, targeting them with relevant content based on location. We deliver high response rates and returns for clients, without expensive retrofitting. Through our innovative geo-location and demographic targeting technology, we bring you closer to consumers by replacing regular radio commercials with targeted messages specific to the individual listener. This is done in real time, so it is incredibly effective.
With listeners tuning in from around the world, investing in better targeting has never been more essential (or lucrative). With your own branded channel on our UTuneMe app, or by integrating our clever Exaget technology into your existing app, you can start getting closer to your listeners right away.
Savvy developers and companies who experiment with this emerging trend will be rewarded well beyond those who continue to view the smartphone as just another screen.
If you found this week’s update interesting feel free to join our mailing list or donate a share, like or tweet. Subscribe to our newsletter to get our update into your mailbox. If you are a broadcaster, or advertiser and are interested in learning how targeted audio advertising can work for you get in touch.
Exaget Team
Twitter – @Exaget
Facebook – Exaget
Mobile’s share of ad spend doubles in a year! Fuelled by smartphone ownership reaching over two-thirds (68%) of the UK population in June 2013, mobile advertising grew like-for-like by 127% to £429.2 million in the first half of 2013 from £188.1 million in the first half of 2012. Mobile now accounts for 14.1% of all digital advertising spend – nearly double the 7.2% for the same period last year. As 4G networks begin to roll out, mobile video advertising grew sharply, up 1,260% from £1.7 million in the first half of 2012 to £23.0 million in the first half of 2013.
Advertising networks have played an increasing role in advertising as online advertising grew. An advertising network (ad network) is an online system that specializes in matching up advertisers to publishers. With the popularity of mobile apps, many mobile apps are looking to host advertisements to monetise their users. Mobile Advertising networks work as brokers for both publishers (apps with content that can host ads) and buyers (the advertisers).
Typically, each Ad network requires a small component to be installed within the website or App. This is typically called an SDK or API. This allows the ad to be delivered to the website or App.
There are many different ad-formats: Banners, Pops, Interstitials, Richmedia, Audio, Video and many others. Some ad formats perform better the others. Some are considered more intrusive than others. Some have slammed mobile audio ads as annoying, while some marketers admit that having a bit of sound can be a good way to bring user’s attention to one ad amongst half a dozen banners.
Benefits of using an ad network for advertisers is that they can plan their campaigns dynamically and monitor the progress regularly. That allows them to make changes and improve their Ad perfomance based on the feedback. Most Ad netowrks now allow for charging only when an objective is met, in terms of impression, action, etc. An ad network’s targeting capabilities enable you to segment massive audience by demographics, day part and music genres and geographically.
Ad networks have been mainly focussed on serving ads within Apps and on Websites. And Audio Ad network would truly enable delivery of an audio ad within an audio program, combining the power of traditional radio advertising with all the benefits of Internet advertising, including precision targeting and performance tracking. Other benefits are:
• Capitalize on user captured attention
• Short and non-intrusive ads creating positive brand acceptance
• Real-time targeted ad delivery
• Real-time reporting of ad impressions and CTR for optional banners
• Assured delivery — Don’t pay for “impressions” that are not seen or heard
• No guessing on ROI
• Targeting on ad level — each ad within a campaign may have unique audience targeting
On the other side, joining an ad network frees publishers from having to invest into a sales team, set up their own ad servers and invest in tracking software.
• Monetize while giving your app a head start on loading.
• Capitalize on unexpected user behaviour and fill in idle time with relevant ads.
• Preserves the full screen real estate on mobile devices and web sites.
• Real-time request of ad length before delivery: 10, 20, 30 second flags.
• Real-time monitoring and reporting of ad traffic and revenue.
At Exaget we have developed our own audio ad network monetising online inventory for internet radio broadcasters with a self-service ad portal enabling full management, control and reporting for custom made audio ad campaigns.
If you found this interesting feel free to join our mailing list or donate a share, like or tweet. Subscribe to our newsletter to get our update into your mailbox. If you are a broadcaster, or advertiser and are interested in learning how targeted audio advertising can work for you get in touch.
Exaget Team
Twitter – @Exaget
Facebook – Exaget
Efficient advertising is an integral part of modern day business models. Recently, Heart’s brand new TV advertising campaign has been designed to take advantage of The X Factor and cinema audiences to further promote the brand’s name through a £2.5 million initiative. The 30 second advert will allow Heart, the UK’s largest commercial radio company, to reach an even larger audience than normal, and use the captive audiences present within the huge X Factor and cinema audiences’ to guarantee maximum exposure.
Heart might be supplementing their radio facilities with this new TV advertising campaign, but that does not mean that the radio itself is a poor method of advertising. Radio advertising was once expected to become increasingly irrelevant in a future where new forms of technology seem to be invented on an almost constant basis, yet the actual outplaying of the advertising market has already shown that this is far from the case.
The Popularity of Radio
The radio still represents a highly appealing service for many people, as shown by Rdio’s recent move to launch a free smart radio service for its listeners in the United States, Canada and Australia. The music streaming world is already a competitive sector due to established brands such as Spotify, Pandora and Apple’s iTunes radio, and this latest move from Rdio is expected to bring the company back into the spotlight after some relatively low-key recent years.
The Radio and Twitter
When you think about it, the continuing presence of radio advertising is unsurprising, as it possesses many of the intrinsic principles that have made Twitter such a popular marketing tactic. Both distribute selected forms of content over a mass audience, and the priority for both mediums is to maximise persuasive impact within very limited restrictions. Tweets are constrained by characters, just as radio advertising is limited by time, and both need to be as authentic as possible to prevent their audiences from casting their attention elsewhere; so the similarities are actually quite striking between the two methods.
What’s more, the window of relevance for individual advertisements on both the Radio and Twitter is very fleeting. Both need to make a lasting impression almost instantaneously, or their worth will quickly be lost. Similarly, radio audiences and Twitter users are known to be most active at certain times of day, meaning that marketing strategies making use of them really need to plan their promotions, taking advantage of times when their target demographics are at their most accessible.
Radio advertising and Twitter are also typically formatted to only advertise messages that are consistent with their following audiences. A drastic deviation in tone can prove to be especially off-putting, so it’s important to restrict the sort of topic that receives exposure on both mediums. With the popularity of Twitter still in the ascendency, it really comes as no surprise to see the radio holding its own so ably, as the comparisons are plain for all to see.
Exaget’s Internet Radio Advertising Services
If you’ve yet to make the most of radio advertising, then look no further than Exaget to provide you with the most intelligent bespoke solutions to reach the exact target audiences that you’re intending to. Please feel free to contact us if you require any further information about the service that we offer.
Convergence of Mobile and Radio
November 22, 2013
Combining Mobile and Radio can lead to a better ROI for the Advertisers. The growing Smartphone population is not something to be ignored. In Europe, smartphones overtook feature phones in 2011, with the same expected globally next year.
People are spending much more time on Apps rather than browsers on their devices. Unlike the desktop, where search is a great way to look for anything, specific bookmarks or apps are the way to go with mobiles. There is also an increase in the number of average apps per device. In the US, 56% of Smartphone Owners Have Downloaded Any Audio App with top 3 being Pandora, iHeart and the stations own app.
Radio continues to hold its own. And this is not just in terms of the number of people listening but also the average listening hours. A study by Edison and Arbitron found, not surprisingly, Radio is the media predominantly consumed before arriving at a store. It is a media that can be consumed while on the move. What is also interesting is the high response rates of follow up actions to Radio commercials, with almost half having responded to a radio ad.
RAB’s study on the impact of Radio advertising found that the average RoI from Radio is over 7 pounds. And adding radio to the campaign mix has a positive impact on the overall RoI of the campaign. there are number of factors why Radio tends to be having these positive impact. Radio is the closest thing to personal (mobiles have taken that role now) and has a strong emotional connection to the listener – which contributes to this impact.
Users tend to click more on ads and brands that are locally and otherwise relevant. The personal nature of the mobile device makes it possible for advertisers to serve ads that are likely to be acted upon more.
In a study in the US, it was found that 60% of Internet users have listened to Internet radio. Mobile is about half of that, according to various reports. Which is in line with the UK stats too – where in about 24% have listened to radio via their mobile. These stats exclude the music streaming apps, which are growing rapidly.
The trends are clear for Internet radio growth and advertising. The market is in the early phases but given the trends in mobile adoption and its effectiveness – this is definitely the area of growth.
It is not just about the volumes, but the impact of Digital Audio too. Internet radio has seen increased response rates consistently. This is a great opportunity to increase your ROI, is doable today and is waiting to be exploited.
If you found this week’s update interesting feel free to join our mailing list or donate a share, like or tweet. Subscribe to our newsletter to get our update into your mailbox. If you are a broadcaster, or advertiser and are interested in learning how targeted audio advertising can work for you get in touch.
Exaget Team
Twitter – @Exaget
Facebook – Exaget