Targeted Radio Advertising

Advertising Shake Up for 2015

January 29, 2015

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The Super Bowl is one of – if not the – biggest sporting events watched in America, synonymous with showy half-time celebrity performances and adverts. But not just any adverts – brands pull out all the stops with their big-budgeted celebrity-endorsed ads. This year even features the likes of the Victoria’s Secret Angels and queen of the derrière, Kim Kardashian. And being ostentatiously American, any adverts shown and any songs performed will trickle down through social media and reach – and impact – the rest of the Western world.

The Super Bowl Sound Awards for Excellence in Audio Creativity

Perhaps no other sporting event is so lucrative for televised celebrity performances and brand adverts. But for this year’s Super Bowl, TV adverts are not getting all of the attention. The Super Bowl Sound Awards for Excellence in Audio Creativity – yes, it’s a mouthful – is a chance for advertisers to strategically use audio in order to increase their consumer outreach. And the judges? Radio listeners, of course.  Westwood One, the flagship network for radio’s Super Bowl XLIX coverage, stated, ‘Our Super Bowl broadcast is the perfect environment for advertisers to leverage their commercial creative, thanks to our incredible reach and sheer volume of audience across platforms.’

It’s not just Super Bowl-related ads that are getting a shake-up this year

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Picture Credit: Inside Radio

The latest figures by Borrell Associates indicate where the biggest growth for advertising lies for 2015. Video ads are
still top players, with an estimated growth rate of 39% to $7.7 billion. Targeted display ad spending will nearly
double to a monumental $28.2 billion, a humongous growth rate of 92.4% from 2014. Audio ad growth for radio is a much smaller estimation figure of 8.3% to $300 million. Overall, Borrell state that audio ads will capture just 1% of all digital money spent by advertisers. But these figures for audio ads may be bolstered by two factors. The first is the influence of the Super Bowl. If their new radio ads scheme works, more brands may feel more confident in investing their time and money in audio ads. The second, is that of the ‘mobile effect’. Within five years, Borrell estimates, nearly 70% of online advertising will be done via a mobile device. Listener-targeted audio adverts in mobile radio apps, despite being quite a mouthful, could be the key to a more increased audio ad growth rate.

Native advertising is set to get a boost too

BIA/Kelsey has forecast that native ad spend in the US will reach $18 billion by 2019. Facebook’s shift to in-feed advertising and their transition to mobile puts them at the heart of native advertising. In fact, a vast majority of Facebook’s $7.9 billion in advertising revenues for the first 9 months of 2014 came from none other than native formats; in-feed on desktop and in-stream on mobile. And this year, Facebook are pushing ahead for native video advertising. Just how they will gain revenue from these ads has not yet been announced, but it is possible that whilst the videos will appear on a user’s newsfeed, they won’t play automatically – suggesting cost-per-click. But one thing is for certain; native advertising will bring in big revenue for Facebook, and in return for native video advertising overall. That leaves native audio advertising as an area that has been vastly untapped.

In with the old and in with the new

The traditional platform of advertising, via the much-beloved television set, is and probably always will be a highly effective way for brands to reach out to existing and new consumers. But with digital platforms being an ever-increasingly important aspect of our lives, it is time for advertisers to embrace these new shake-ups if they really want to realise their potential and expand their outreach – and essentially make more money! After all, with over 90% of adults listening to radio, it is surprising that technology changes have not been embraced as much as they should be.

 

If you are interested in becoming a broadcasting partner, or would like to know what our integrating technology can do for you, contact our Partnership Account Manager Matthew Layton – matthew.layton@exaget.com or +447533517396

If you are interested in advertising opportunities, please contact the CEO of Exaget, Shankar Meembat –shankar.meembat@exaget.com or +447411130680

NPR One – The blueprint for mobile radio apps?

January 21, 2015

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Statistically, online radio listening is increasing year-on-year, with the biggest percentage of listeners falling in the 12-24 years of age bracket; and it’s the same story for music streaming services. As both audio platforms try to boost their listener percentage, they must look at what makes them different from their competitors. But online radio looks like it might have an advantage…

 

BURSTING AT THE SEAMS

There is no denying that the online music streaming industry is over-saturated. Just off the top of your head you would probably be able to name Spotify, Pandora, Deezer, SoundCloud and Grooveshark. And that’s just the big international players – imagine how many more, local, music streaming services there are the world over. Just last week it was announced that Tesco’s ex-music streaming service, Blinkbox Music, is to be sold to Guvera, yet another such service, hailing from Australia. French service Deezer acquired US based Muve Music to expand their music streaming footprint in America. And yet again this week we have been informed of two – yes, two – more music streaming services that we should keep our ears peeled for – Boomio and Nusiki, who both lay claims to providing users with services that are different, and better, than their competitors.

 

‘IF INSTAGRAM AND SPOTIFY HAD A KID’

Brian Hewitt, co-founder of Chicago-based Nusiki, has described this new app as ‘if Instagram and Spotify had a kid’. The secret, it seems, in launching these new apps, is in implementing small features which other apps have overlooked and making a big fuss over that. Spotify shares music too publicly? Ok, we’ll make our sharing system more controlled, as in the case of Nusiki. After all, it’s the little things that make the difference, a phrase that seems to carry a lot of weight in the world of music streaming.

Boomio’s mantra seems to be ‘sharing is caring’ as users pick a song to listen to and share, and at the end are prompted to either re-share in order to hear the next song or buy the track on iTunes. Sharing can be done to an individual, a group, or a social network.

But at the end of the day, music streaming services are limited in what they can offer to the listener when compared to the content of radio. Radio stations are of course already available on mobile phones, but they often lack that element of personalisation that such services as Spotify and Pandora offer. But what if there was an app that brought to you relevant news and stories, in bite sized chunks, from your local radio station as well as internationally, with the curation aspect of music streaming services?

Larry Rosin, president of Edison Research, has recently talked about one such app – NPR One. Dubbed ‘Public radio made personal’, it is available only in the US, although users worldwide can still download it and listen in. The app itself has many great qualities, but it’s not just good; it could well be a blue-print for future radio apps with which to take the online audio platform by storm.

 

‘PANDORA-ITISATION OF CONTENT’

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The advantages of radio are numerous and well-known. One of the oldest social mediums, it still continues to have a large relevance in people’s day-to-day lives. What NPR One does so well is offer their listeners efficiency. Up-to-date relevant news and stories, in under 5 or 10 minutes. Like the music streaming services, you can skip stories, flag your favourite, and share. But it also reminds the listener that there is a local public radio station as part of its programme, and one that needs financial support. Through this scheme the app inspires a wholesome community feel; radio really does bring people together.

Of course, NPR One only deals with news and stories; there is no music, no presenter tete-a-tete, no real-time traffic and weather updates. But all of these typical radio features could be merged with NPR One’s principal concept to create great personalised radio apps, which would have a better value to listeners than all the current numerous music streaming services which fundamentally all do the same thing, albeit in differently packaged ways.

And it’s not just broadcasters and listeners who would benefit from such apps; advertisers too could cash in by the implementation of personalised user-targeted ads.

The moral of the story? NPR One have a great mission and concept. Taken on a global scale and implemented by other radio apps, mobile radio would certainly offer much more than music streaming services – the varied content of radio, with the curated personalisation of music streaming, and adverts tailored to both listener and broadcaster. We all know that radio as a medium is still going strong, with audience figures constantly on the up, and it’s refreshing to see that younger listeners haven’t been completely sucked in by the world of streaming – at least, not in the UK. 

 

If you are interested in becoming a broadcasting partner, or would like to know what our integrating technology can do for you, contact our Partnership Account Manager Matthew Layton – matthew.layton@exaget.com or +447533517396

If you are interested in advertising opportunities, please contact the CEO of Exaget, Shankar Meembat –shankar.meembat@exaget.com or +447411130680

 

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December 8, 2014

It’s been a hell of a day at work. Best not to mention the tube. And it looks like someone gave the kids too much sugar. Slouched on the sofa, G&T in hand, there’s just one thing you want to do. Chillax with your favourite artist, Nicki Minaj. You love the song, but you haven’t yet seen her ‘Anaconda’. You wonder what it looks like. YouTube is about to show you.

But oh….the bitter disappointment. It’s the dreaded YouTube pre-roll.

Frankly, you couldn’t care less about some new dragon warfare game. You start to search frantically for those two holy words – ‘Skip Ad’. Panic sets in. You can’t find them. You may not be particularly religious, but you’re praying now. You must endure 30 excruciating, agonising seconds of what feels like medieval torture. Never has time gone by so slowly.

The YouTube pre-roll is a negative experience for the viewer. If the viewer – essentially, to an advertiser, a potential customer – feels like they are being harassed or forced to endure a piece of advertising content, then someone in the advertising and marketing world is not doing their job properly. The net result is that the potential customer is left with a negative association with the advertising brand.

Our association with the YouTube pre-roll is a negative one. However, the opposite is true with a well-produced, well-deployed audio pre-roll. Here at Exaget, we entwine broadcaster and advertiser brands into a product that really works. We leverage the emotional connection the listener has with the radio station. By downloading the radio station’s app on to their mobile, they have invited the radio station onto a device as personal as a toothbrush.

We’re currently running a brilliant example of the sensitively branded pre-roll with one of our premium broadcasters, French Radio London. When a listener opens the French Radio London app on their mobile phone or device they are greeted by the following pre-roll, which interweaves the radio station’s brand with that of their luxury advertising partner, Relais & Châteaux.

For a sneak peak of how our pre-roll works, download the French Radio London App here
For a sneak peak of how our pre-roll works, download the French Radio London App here

This turns the audio pre-roll into an incredibly valuable piece of advertising real estate. At this point the listener is most probably still looking at their mobile device. Not only will they engage with the accompanying visuals – in this case the understated sophistication of Relais & Châteaux’s gourmet gift boxes – they are also presented with an opportunity to interact with the brand with just a simple tap of the map icon.

The benefits are obvious to the advertiser, the broadcaster and the listener. The advertiser gets to leverage the emotional connection that the listener has with the broadcaster’s brand and output – resulting in a deeper engagement with their own brand and product. This in turn helps to establish a relationship with the consumer, increasing the likelihood of consumer-to-brand interaction, and ultimately improving the advertiser’s chances of increased sales. In this case the exclusive and opulent nature of the advertiser’s brand adds value to the broadcaster’s already premium brand. The listener is presented with a seamless, consistent, and relevant listening experience.  

Your relationship with your phone is personal. Emotional. As is your relationship with the radio station you chose to listen to. Mobile in hand, radio on, headphones plugged in, you cocoon yourself in your own little world. It’s personal. Intimate even.

The new possibilities offered by interactive radio advertising allow advertisers to turn these personal, intimate moments into opportunities for engagement.

But woe betide the advertiser who abuses them.

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Exaget Week in Review: Targeted Radio Advertising, Mobile Transactions & Streaming Income

January 30, 2014

Exaget Week in Review, Targeted Radio Advertising, Mobile Transactions, Streaming Income

Berk Marketing reminds business owners that radio is an affordable, direct response vehicle that efficiently attracts qualified leads. On-line advertising may be new and shiny, but radio advertising is steady and reliable.

Square’s million share tender offer values the company at a whopping $5 billion and illustrates just how hot the mobile payments space has become. BIA/Kelsey’s survey data certainly captures this momentum, showing that both consumers and small-businesses are embracing mobile payments.

Streaming income gained 30% over 2012, continuing a three-year upward trend. Streaming revenue accounts for 70% of all Swedish music earnings. Because of the streaming powerhouse in Sweden, total music revenue is on a similar three-year growth curve.

Here’s this week’s round up:

As Internet Advertising Cost Rises, Targeted Radio Advertising Is A Secret Weapon

While Internet and mobile app advertising continues to be the fastest-growing segment, growing by 32.4% in 2013 according to Neilson, they are not necessarily the most effective. That’s because consumers still trust traditional media advertising over Internet advertising. Neilson reports that 58% of consumers trust radio ads compared to 44% who trust search advertising, 39% who trust social media ads, and 35% who trust mobile display ads.

Square’s Mobile Transactions Gives Company $5B Valuation

When it comes to mobile payments via credit swipe, 42% of consumers say they have done so. The heaviest users are the 35-44 age group (45.4%) and Hispanics (48.9%). SMBs realize that more of their customers are going mobile and they are optimizing their presence to be more mobile as well. According to our LCM survey, almost 40% of SMBs reported that mobile marketing is a high priority in the next 12 months.

Streaming revives music biz in Sweden; what should musicians learn from this?

IFPI Sweden released industry metrics for 2013, showing deepening loss of CD and download sales, countered by a large year-over-year gain in streaming revenue. Billboard did a good job translating from Swedish and packaging the statistics into a chart.

Heinz Radio Case Study 2014 – RAB

New best in class radio case study from the RAB: The “It has to be Heinz” campaign demonstrates how uncompromising attention to detail at every stage of the creative, media and evaluation process enables brands to harness fully the emotional influence of radio to drive their business.

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
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