The Rise of Internet Radio Advertising Revenue

Standard Media Index released its January U.S. advertising report. As in other recent editions of this report, digital spending across media categories rose.

According to internet experts Hanson & Hill the major points of the report summary says the magnetic pull of digital media continues into 2016, with marketers drawn towards the sector. Of total ad spend in January, digital formats accounted for 27% — a three-point rise from a year earlier. Digital spending grew 16% year-over-year, keeping the entire ecosystem on the upswing in January by 4%.

Audio advertising was split along the digital divide. Traditional radio advertising volume downward 16% from January 2015. On the other side of the fence, Internet radio received a 29% lift in advertising spend.

Chris Clay, owner of iVybe Radio states, “the reason for the increase in sales is affordability. There are internet stations that have huge listenership! People need to realize that E-commerce is here to stay. iVybe Radio and others have the ability to customize ad packages. With a $500 budget we can maximize the client’s investment with banners, tweets and various forms of social media that give them more bang for the buck. We even do live remotes and contesting. Unfortunately, many have yet to realize that internet radio stations do have an impact. If they didn’t, they would not be Nielsen reporting stations. At iVybe, business owners are now coming to us quicker than we go to them. We do drive traffic, sales and we are getting buys from record labels. We do what radio used to and now we connect where there has been a huge disconnect.”

Lorenzo “Ice T” Thomas, former WERD air personality and owner of internet radio station “Live From The Mia” says “the increase in Internet sales basically supports what I have been saying for years. For the adult radio listener who searches for music to satisfy their palate, the music that is programed for them by most terrestrial stations leaves a lot to be desired. There is a huge void between 18- 34 and your traditional adult contemporary 25 -54 radio stations and Internet radio has found the real formula how to fill that void and advertisers recognize Internet radio numbers are real and are tangible. Internet radio rankings are based on listens/tune ins and THL instead of an individual walking around with a meter on their hip.  Some of the people in the position of power have chased a huge demographic away from terrestrial radio because of a lack of organic research that would reveal the true essence of the culture which equates to an entire generation that grew up on true Classic R&B and Old School Hip Hop music. As technology evolves, so should the way companies conduct research. Due to the repetitive, archaic ways research is done, the 25-54 radio listener who grew up on Classic R&B and throwback Hip Hop radio has chosen internet radio has a platform to enjoy music that satisfies the masses and avoids the circumstantial consequences programmers pay for not rotating the same songs over and over again.  As access to Internet radio becomes easier for listeners through mobile friendly websites, apps and Wi-Fi in all cars the advertising dollars will go where the people go. I’m proud to say that Live from the Mia is the #1 Radio Station in the USA on Streema.com, the #1 R&B Radio Station on Caster.fm. We are also a 2016 sponsor and partner of Jazz in the Gardens, The Miami Takeover and just last week we sponsored The Legends of Troy event at CIAA.

Other legacy media categories have suffered as well: Newspaper spending dropped 17% and magazines lost 2%.

We now live in a digital age and consumers have a plethora of options as to how and when they receive content.

Digital advertising is clearly the shape of things to come as well as an affordable option for small business owners, most of whom cannot afford thousands of dollars in commercial radio advertising. Don’t be at all surprised to see the return of record label advertising their artists, new and established in this arena.