There's no question that video is and will continue to be the preeminent media format; all media types, regardless of where they began, now play in the video space, and consumers' collective appetite for it isn't slowing down. We've seen viewers steadily migrate away from linear television and toward on-demand streaming sources. What's interesting to note, however, is that while radio has faced a similar challenge from streaming pure players, it has not declined at nearly the same rate.
In fact, AM/FM radio still accounts for more than half of consumer listening time, according to the Edison Research Share of Ear Report in Q2, 2017. This is due in part to the longer commute times and less use of public transit in the U.S. compared to other countries. For now at least, the car isn't the primary listening location for consumers using streaming audio services. This may well change as more connected cars hit the road and streaming becomes a more frictionless experience.
These are just a few of the insights we uncovered while digging into the world of audio for our latest Media Economy Report, which MAGNA has published bi-annually since 2012, drawing on our proprietary insights, forecasts and expertise within the IPG Mediabrands network.
Other highlights include:
- Marketers have begun to take note of a diverse, affluent and growing podcast audience. Measurement breakthroughs will likely spur more investment moving forward.
- For AM/FM radio, key industry verticals are suffering. Retail and automotive make up one third of advertising sales, and both currently face headwinds.
- Between local businesses expanding and a more favorable view of direct digital media as a replacement, local radio has been hit harder than national.
- Similar to Music Choice in MVPD households, consumers with connected televisions have taken to streaming music via the set, whether it's Pandora, Spotify or music videos on YouTube.
- Smart speakers, such as Amazon's Echo, can quickly become the entertainment hub in a home and offer a number of new opportunities for advertisers.
- Driven by virtual assistants like Siri and smart speakers, voice search is becoming an increasingly common phenomenon, with some sources predicting half of internet searches will be conducted that way by 2020.
If you're interested in checking out the full report, you'll have the opportunity to do so at CES, where it will be making its debut. After all, a lot of the technology that will enable the evolution of audio will be right there on display. You can pick up a copy at the IPG Mediabrands suite at the Fairway Villa Wynn/Encore, or inquire with one of our colleagues.
By Brian Hughes
Brian Hughes leads the Audience Analysis Practice for MAGNA, which is tasked with making sense of consumers’ media habits in a fully mediated world.
Appered first in Media Village