For most brands, it’s common knowledge that the key to a strong advertising strategy is to use a healthy mix of digital and traditional mediums. Put too much into out-of-home, T.V., radio, or print, and you’re missing out on relevant intenders with a genuine interest in your product or service. Avoid these all together and you’ve forfeited the exclusive value that mass media provides your brand.
Many marketers struggle with deciding where to put the remainder of their media dollars that have yet to be allocated. Streaming radio is a vehicle that is often left out of media buys, simply because it gets forgotten. Landing somewhere in between traditional and digital, streaming is unjustly overlooked, but can be the crucial element your approach is missing. Here’s why:
Streaming is Diverse
Between Pandora, Spotify, Apple Music, and many more, there is an abundance of services to choose from when deciding where you want your ads to show. Each service caters to a slightly different audience, so be sure to incorporate that into your decisions. For example, Spotify tends to skew younger while the majority of Pandora listeners are over 30. Most services also allow you to layer in precise third party data on top of the audience demographic and geography segments. Selling cars? Auto intender data lets you only speak to users that are in the market for a new vehicle. Chandeliers? Luxury home buyers are going to yield better engagement than the everyday user.
Streaming is Cost-Effective
With the average CPM for audio starting at $5, streaming radio is a reasonable investment for even the smallest brands. From there, you can customize your ads to include companion banners, pre-roll, and even native content.
Streaming is In Demand
In the car, at the gym, or on the beach, streaming continues to increasingly dominate. While terrestrial radio remains an excellent medium to gain mass reach in an Omni-channel strategy, a recent study conducted by the Music Business Association found that over half of millennials favor streaming. It caters to the “instant gratification” of listening to a certain artist or playing a specific song that many music lovers no longer have patience for with FM radio. While it’s true that a growing number of subscribers continue to upgrade to the paid services, on average only 30% of users pay for ad-free listening, leaving the rest as open, valuable targets.
Whereas traditional radio listeners are more likely to skip to another station when an ad comes on, the personalization factor that streaming provides through targeted data and visuals is ultimately what captures user attention. Designate some of your 2018 terrestrial radio budget to streaming radio; you’ll find yourself generating better quality leads at much less of an expense.