Music streaming apps have made it easier than ever before to listen to and share your favourite songs and albums. Now, Spotify has published new research which finds that 60% of music streamers are using their smartphones to listen. Another 40% of users are now also streaming TV content on their devices.
The success of streaming apps has opened up new opportunities for marketers. Indeed, the revenue opportunity is currently worth $1.5 billion and is expected to reach $7 billion by 2030. Advertisers can now reach consumers during mobile moments when they are more engaged, e.g. whilst commuting or working out.
So what makes audio so special? Spotify says audio is personal and enables people to dive into a world of their own. In addition, it can boost or underscore a wide variety of moods.
Generation Z is now 54% more likely to stream audio on headphones than the rest of the population. Tech innovations will likely boost the way we consume audio in our cars and at home by connecting all devices to the Internet.
Ultimately, the growth in music and spoken word content consumption will boost advertising time. By assigning mood profiles to songs and shows, marketers could cater better-matched ads to their selected listeners. Targeting is no longer just about demographics, but about the way consumers are feeling.
But are audio ads working?
According to a comScore study, ads within podcasts were found to be the least intrusive and consumers felt a better connection whilst listening to them. In addition, two-thirds of respondents said they acted on those ads by looking up the product or making a purchase.
A separate analysis by Spotify and Nielsen highlights that listeners prefer audio ads over display ads when using streaming apps. Audio ads also tend to be more memorable with a 24% higher recall rate than display ads, and they boost purchase intent. For marketers it pays off to create story-like ads that fit seamlessly between audio or spoken-word content.
The success of audio advertising is further solidified in findings from Advertising Age and The Trade Desk, which show that US marketing businesses are planning to more than double their advertising spend over the coming 12 months compared to 12 months ago.
Rob Wood, CEO of Music Concierge, explains:
“Music stimulates us or calms us down. That’s why we go to the gym and use stimulating music, or we go to a spa and we use relaxing music. It affects our bodies and our behavior. A lot of brands, by their very nature, are trying to influence your behavior [too].”
But when telling your product or service story, a good soundtrack matters as well. Of 3,500 audio ads, around 89% use music in some way, according to Ipsos.
In addition, Spotify has previously released findings which show that streamers can be reached more effectively compared to non-streamers. Indeed, they are 90% more likely to listen to a podcast and 34% more likely to read traditional magazines than non-streamers.
Through streaming, consumers are now actively engaging with media across devices and during the moments that matter most to them. It’s up to us to listen and respond in tune.