TargetSpot Unveils Industry’s First Digital Audio Advertising Research

NEW YORK--(BUSINESS WIRE)--TargetSpot, the largest digital audio advertising network, today releases the industry’s first in-depth Internet Radio advertising research, “Digital Audio Usage Trends: A Highly Engaged Listenership” and “Internet Radio Advertising Impact.” Conducted by Parks Associates, the reports unveil the behavioral trends of an emerging “Super Demographic,” and cement the value of digital audio advertising both as a direct and a complementary marketing channel.

“Radio, across all platforms, is a powerful advertising channel that advertisers need to include in their marketing plans.”

The Explosive Growth of Digital Audio

Internet Radio, which includes online-only radio stations and Broadcast Radio station streams, is one of the fastest-growing online media categories, according to eMarketer.¹With the proliferation of new Internet-enabled devices, digital audio usage is gaining tremendous momentum, already connecting more than 89 million consumers per month to online audio content in the US alone.²

“Marketers can no longer afford to ignore the rapid growth of digital audio," said Andy Lipset, Chief Revenue Officer of TargetSpot and co-chair of the IAB Digital Audio Advertising Committee. “These new research reports reveal the existence of a 'Super Demographic' that advertisers can reach and engage directly through Internet Radio – making this medium a critical element of a brand’s overall marketing mix.”

Advertising’s “Super Demographic”

TargetSpot has identified three key characteristics that are embodied by this audience:

1. “Tuned-In” -- Digital audio consumers are deeply committed to their content. They listen to Internet Radio up to three hours a day, also listen to Broadcast Radio up to three hours a day and in addition connect to the Internet for more than four hours a day.

2. “Highly Engaged”-- These consumers consistently listen from their home or work computers, smartphones and tablets. They change stations multiple times per day, refer to their online media players to check the names of songs and artists, and spend substantial amounts of time selecting, personalizing and interacting with a wide variety of digital audio content.

3. “Influencers”-- These consumers are actively involved in social networks, frequently recommend products and services to friends, and are often asked for advice on what to buy, where to eat and where to travel.

Tuned-in, highly engaged and influential, this audience demonstrates significantly higher brand recall and ad response, creating the powerful “Super Demographic” audience of digital audio consumers.

“The explosion in digital audio usage has created a very large and influential audience of connected individuals that consume more and more audio content,” said Rick Ducey, Chief Strategy Officer at Bia/Kelsey. “Tapping into this audience represents an enormous opportunity for advertisers to increase both the reach and effectiveness of their online advertising and/or Broadcast Radio campaigns.”

Internet Radio Advertising Impact on Radio and Online Advertising

TargetSpot research found a 3.5X higher ad response rate when adding Internet Radio to a Broadcast Radio campaign, and a 2X higher ad response rate when adding Internet Radio to an online campaign. These ad responses include both online and offline actions, reaching well beyond the click, including: purchasing a product online or at a retail location, searching online for product information, becoming a “fan” on Facebook, or calling the company.

“These studies confirm that radio and its digital platforms influence behavior and drive traffic. The impact of these advertising synergies will add impetus to Radio’s revenue growth in 2011 and beyond,” said Jeff Haley, Radio Advertising Bureau President and CEO. “Radio, across all platforms, is a powerful advertising channel that advertisers need to include in their marketing plans.”

To receive a free, detailed synopsis of the reports:

Sign up to join our free Webinar with Parks Associates by contacting Jennifer Schenberg, PenVine for TargetSpot, at 917-445-4454 or jennifer@penvine.com.
Download white papers of the research from our Website at http://www.targetspot.com/2011/04/12/targetspot-unveils-first-digital-audio-advertising-research/.

About the Reports

The Digital Audio Usage Trends: A Highly Engaged Listenership report is based on an online survey of 1,000 Internet Radio listeners (ages 18+) who listen to the medium once a month or daily in the United States. The Internet Radio Advertising Impact report is based on an online survey of 2,127 U.S. broadband households (ages 18⁺) who listen to traditional AM/FM radio and Internet Radio and use the Internet once a month to daily in the United States.

¹eMarketer: "Internet Radio Makes Waves," September 2009. ²Arbitron Inc./Edison Research: “The Infinite Dial 2011: Navigating Digital Platforms,” April 2011.

About TargetSpot

TargetSpot is the largest digital audio advertising network. TargetSpot connects top national brands, regional, and local advertisers to highly engaged Internet and mobile audiences. Advertisers work with TargetSpot’s team or use its self-service platform to create rich media campaigns delivering high-impact audio, display and pre-roll video advertising across thousands of online properties. TargetSpot advertisers can target consumers by demographics, listening preferences, and geography down to zip code level; while benefitting from real time reporting and analytics. TargetSpot has 80 distribution partners, including CBS RADIO, AOL Radio, Entercom, Live 365, Yahoo! Music, and MySpace Music. TargetSpot is based in New York City. For more information, please visit www.targetspot.com

About Parks Associates

Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions. The company's expertise includes new media, digital entertainment and gaming, home networks, internet and television services, digital health, mobile applications and services, consumer electronics, energy management, and home control systems and security.