Study: Internet Radio A Compelling Opportunity for Advertisers

An interesting new study by GroupM Next compares broadcast and internet radio listeners. GroupM Next is the “forward thinking, innovation unit” of GroupM, the largest conglomerate of Ad Agencies in the world. The unit studies consumer use of new platforms and provides insight to agencies on usage of such.

The study reveals several positive facts about the Internet radio audience. The average age of an Internet radio listener is 34 years old versus the average age of a broadcast radio listener which is 47 years old. Since the average income was found to be similar in both groups, the Internet radio audience is more affluent given their substantially younger age.Earbuds

86% of Internet radio listeners listen to free services and have never paid to listen. They don’t mind ads, and don’t try to avoid them, and are twice as inclined to make a purchase after hearing an ad. In fact, 29% of Internet radio listeners have purchased something they heard advertises, versus 14% of broadcast radio listeners.

The study comes to some very strong positive conclusions about both Internet radio and the future of audio, pointing out that we are in the middle of a major shift in the way that music is delivered. Concluding that the greatest opportunity for brands lies with Internet radio services such as Pandora and iHeartradio, the research emphatically concludes that a “continuously growing user base, a swell of compatible devices and a consumer that is both receptive and responsive to advertising makes Internet radio a compelling marketplace to reach consumers.”Now that sounds like a statement that Internet radio can take to the bank..

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4 responses

  1. structure of respondent base and methodology somewhat questionable fo produce sweeping conclusions promoted in report. think study CCM+E presented at ARF on demonstrable effectiveness of broadcast radio for Dove products has more validity.

  2. This is awesome. Thanks for highlighting this study! Going to get now & share! share! share!….

  3. Pity that the study was positioned as being either an “A” or “B” choice rather than recognizing that broadcast & online work together and are not substitutes for each others when part of a larger, strategic media plan.

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