Audio Advertising Capturing Marketers' Attention, Led by Spotify and Pandora

Among survey respondents who have a relationship with Spotify 86 rate the organization 45 on a five point performance scale for providing innovative and creative opportunities among the highest positive scores received by any of the more than 200 media companies rated by MyersBizNet in its annual surveys Pandora with a larger respondent base also performs positively with 62 positive ratings Spotify Vevo and Pandora all receive excellent performance reviews from ad execs for the quality of their sales teams and customer serviceAdvertising revenues generated by Internet Originated Audio suppliers such as Pandora and Spotify are projected by MyersBizNet to increase an average 30 annually through the end of the decade growing from an estimated 880 million in 2013 to 42 billion in 2020 Radio ad revenues are forecast to increase from a projected 165 billion in 2014 to only 171 billion in 2020 with 20 average annual growth in digital revenues slightly more than offsetting an average 25 decline in legacy ad revenuesBoth Pandora and Spotify are struggling as is radio with marketers39 and agency execs39 perceptions that the category does not justify premium pricing While music content is among the most highly produced and appreciated in the world audio advertising remains oversupplied and undervalued In response Spotify Pandora and Clear Channel are investing significantly in promotional and event initiatives that deliver marketing opportunities beyond media exposureJeff Levick Spotify39s Chief Business Officer explains that Spotify is quotnot a passive listening experience Our audience uses Spotify to build playlists share and actively engage We allow marketers to use our content to sponsor relevant and customized playlists amp8211 for the car workouts shower parties etcquot Marketers can associate their brands with specific music genres and even with moods such as CocaCola39s sponsorship of 39happiness39Yet the value equation for marketers remains costperthousand with currency based on engagement metrics and returnoninvestment still in the distance especially as agencies place increasing emphasis on programmatic and automated buying systems quotWe39ve all been talking about programmatic buying and the race to the bottomquot comments Levick Content platforms should offer creative solutions To effectively compete for traditional media budgets Spotify Pandora IHeartRadio Sound Cloud and other audio media vendors will require more sophisticated research tools than the industry currently offers Spotify recently acquired The Echo Nest a tenyear old Bostonbased firm specializing in machine learning around musicrelated attributes quotWe39re on a fast track to deliver insights on what music discovery means to consumers and what marketers can learn to inform their creative solutionsquotThe recent acquisition of Arbitron by Nielsen will finally bring radio media into the 20th Century and enable Clear Channel CBS Radio Cumulus and other radio companies to compare TV and radio metrics Digital audio companies can be expected to ramp up quickly with enhanced metrics and improve on the low performance scores the industry currently receives in the MyersBizNet survey for advanced research insights and supportFor additional details on the MyersBizNet surveys on advertisers39 perceptions and methodology contact Jack Myers at jmjackmyerscomIf you are receiving this report you are a registered member to MyersBizNet or are receiving it as part of a registered corporate membership As a member Jack responds personally to your emails requests and comments He is available to speak at your company events In addition to MyersBizNet Media Business Reports your membership underwrites MediaBizBloggerscom Women in Media Mentoring Initiative MyersBizNet Economic Media Business Report MyersBizNet Video Media Report plus our exclusive industry economic forecasts trend forecasts and corporate performance research Redistribution in any form except among approved individuals within your company is prohibited As a member you have full access to all archives and reports at wwwjackmyerscom If you require your ID and password contact maryannjackmyerscom

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Audio Advertising Capturing Marketers' Attention, Led by Spotify and Pandora

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Audio Advertising Capturing Marketers' Attention, Led by Spotify and Pandora

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