Tag Archives: IAB

Study: Digital Ads Impact Affluent Americans

The Interactive Advertising Bureau and Ipsos Mendelsohn, an independent research firm have released a new study Affluent Consumers in a Digital World. The study focuses on the behavior of Affluent Americans –  the 21% of U.S. households that have a minimum $100,000 annual income or the top fifth of the country.  They represent 70% of U.S. consumer wealth.

It’s an interesting study that reveals that these Americans, with concentrated buying power and generally low consumption rates of traditional media, are the heaviest users of digital media. While Affluent Americans are less likely than the general population to watch TV or listen to radio, they are more likely to own a smartphone, use the Internet and spend more time online.

They also have higher recall of digital ads than the general population and are more likely to have increased awareness of a product or brand because of digital advertising.  

Digital ads have considerable impact on awareness of products and companies for many Americans, but Affluent Americans are more likely than others to say that they learned about new products or learned about companies they were not aware of before due to digital ads.

Interestingly, this group prefers ad supported websites and are willing to provide more information about themselves in order to receive ads that they find relevant.

According to the study, video, banner, email and search ads are the most effective sorts of digital ads with this group, but I saw no evidence that digital audio ads were even included in the study. The IAB has only recently begun to acknowledge audio as a digital ad type – it’s been about a year since the IAB  formed an audio committee (which I participate on) and released A Digital Audio Overview. On September 19th they will host an agency day at their office in New York City and they are making a strong effort to become a good resource for educating the agency and ad communities on digital audio ad opportunities.

IAB Claims Internet Radio As Its Own With New Report

While broadcasters gathered in DC last week, digital folks were in NYC at the Interactive Advertising Bureau‘s annual MIXX Conference, part of Ad Week in that city. (It’s a shame that the two events are at the same time.) During their event, the IAB released its “Digital Audio Advertising Overview” Platform Status Report, a first ever effort by that organization to define the digital audio space and make it easier for digital advertisers to understand it.

The document “defines the digital audio category and provides a snapshot of the marketplace audience size and demographics as well as outlining the players in the market, the vehicles currently used to deliver content and advertising formats, and some of the most important metrics for measuring success.” It’s a white paper that provides a nice overview of Internet radio in terms of audience and measurement, ad opportunities and standards. While the report calls itself an overview of the digital audio space, in fact it concentrates solely on Internet radio – I saw no references to podcasting, on demand streaming, HD, or any other types of what I consider to be audio of the digital variety.

The paper provides research from Nielsen, Bridge Ratings, AndoMedia as well as Edison Research/Arbitron’s comprehensive annual Infinite Dial Study to define the market size, provide listening data and identify the ad units typically available. It also lists major advertisers such as Chevrolet, Ford, McDonalds, Dunkin Donuts, American Express and Home Depot (the list is longer), and includes a case study of OnStar on the Katz Online Network as well as Pandora.

With this white paper the IAB, the main ad association for the digital market, is finally acknowledging digital audio as a digital ad option for advertisers, so it’s a great thing. With all due respect to those involved, it’s long overdue. While there is little that’s new in the report, it’s all pulled together very succinctly into a credible presentation that sellers can use to educate advertisers. It should be particularly useful with digital ad agencies who have been slow to spend on Internet radio. Having the IAB stamp of approval means a lot.

Congrats to Brian Benedik of Katz360 and Andy Lipset of TargetSpot, co-chairs of the IAB’s digital audio committee, and the companies that are on the committee: AndoMedia, Google, Clear Channel Radio, Comcast, comScore, Cox Cross Media, ESPN, Pandora Media, and others. Hats off for a job well done.

You can download the report here.

Digital Dollars For Radio Up Again

Radio revenue posted a 6% gain over a year ago, the largest year over year gain posted since third quarter of 2000, nearly a decade ago. The gain was made by national spot and digital revenue categories. Digital revenue as defined by the RAB, who released the report, includes all revenue derived from radio websites, and includes streaming. The report includes only AM/FM broadcasters and does not reflect revenue for the overall Internet radio category.

While the growth for national spot revenue was a huge comeback for radio from the 10% decline of last year, the digital category shows enormous positive momentum, growing at an even more rapid pace than it grew last year.

Last year, the digital revenue category was the only revenue category that showed growth for radio, with an annual rate of +13% over 2008. In the year end report for 2009, RAB President and CEO Jeff Haley remarked “Radio’s digital platforms are experiencing the greatest growth and are reflective of the dollar shift from media to marketing by many of today’s advertisers,”

Internet advertising revenues in the U.S. hit $5.9 billion for the first quarter of 2010, representing a 7.5 percent increase over the same period in 2009. While digital dollars for Radio are growing faster than the entire digital spend, Radio’s 480 Million in digital dollars remains a small segment of that pie.

Creating Effective Internet Radio Ads


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Flickr: Inno'vision

A new study by brand strategy firm Cone Inc. reveals that 80% of new media users interact with brands online, the majority doing so on a weekly basis. What’s more, consumers tended to have a more positive opinion of brands that interacted with them in new media, and were more tolerant of marketing messages accompanying that interaction.


“Consumers haven’t yet been exhausted by brand oversaturation in the new media space,” says Mike Hollywood, Cone’s director of new media. “There is still an opportunity for forward-thinking companies to establish a presence and earn a competitive advantage. Based on the growth of user interactions with companies, countless purchase decisions are being influenced by new media. It’s imperative to get on board now that the train has left the station.”

Relative to this news, the IAB, the online ad association, has just released some new recommendations for making online ads more effective. Their advice: keep it simple. Assume that you have a very short amount of time to influence the viewer/listener, and make your point quickly and effectively.

While these recommendations do not apply specifically to Internet radio, there’s good reason to take the advice that’s given and abandon any thoughts of running :60s on streaming stations. Even :30s are probably too long.

More advertisers are beginning to use Internet radio, according to several reports 2010 will be a banner year. It’s important, particularly for advertisers who are transitioning to online radio from broadcast radio, that they use different creative messaging to reach Internet radio’s online audience. Ideally, ads will include an interactive call to action: click the banner, send a text, visit a website, become a (facebook) fan. That’s what consumers want and expect. Sellers must be responsible and advise their clients: shorter messages with ways for consumers to interact are the keys. And for goodness sakes, forget the 800 number…

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