“Radio has a strong future… but there are challenges,” said BIA/Kelsey Managing Director Rick Ducey during a discussion last week with veteran media strategist Mark Ramsey. The two sat down to explore radio industry trends and BIA/Kelsey’s report, “The Internet Radio Revolution Has Arrived.” (video interview below).
In the overall advertising mix, digital will grow to make up one third of media spend in the next 5 years, according to Ducey. Within the audio ads, digital will take a 21 percent share in the next four years. That leaves less than 80 percent of audio ad dollars for “traditional” or broadcast radio. “This will be a blessing and a challenge to broadcast radio,” said Ducey.
Much of this opportunity in digital will lie in interactive forms of audio ads. The connected car is one area Ducey cites, due to a need for hands free interaction. Xapp Media, for example, pioneers an format that prompts users to engage through voice commands (see our previous video demo). The ads will appear within the growing inventory sources of streaming apps that serve audio ads in addition to standard display.
Download the report here (free report sponsored by Xapp Media).