We are in the midst of the golden age of audio, a sonic boom both in terms of quantity and quality of content. We live in an era of content abundance generally; audio is no different as listeners have never had so much quality choice available to them as they have today. Developments in technology allow organisations that have honed the skill of listener engagement over many years to apply this learning to an increasing wide range of new platforms. The explosion of podcast content and the enormous technology advancements in areas such as smart speakers, data and streaming has made audio a highly innovative and exciting medium, but live broadcast radio is still very much at the heart of that revolution.
The recent Irish Audio Market Report from Ipsos MRBI, a global market research and public opinion specialist, showed, as you might expect, that there has been huge growth in audio-on-demand listenership. What may come as a surprise is that this growth is not at the expense of live radio. Over time, music streaming services have supplanted music catalogues or archives such as CDs, vinyl or downloads, to provide that “personal” music space, but it is not a substitute for live radio. Podcast content has exploded, it is a popular format and listenership is growing but the levels of podcast listening is still dwarfed compared to radio – some 23 per cent of adults listen to podcasts weekly compared to a 90 per cent figure for radio.
Enduring popularity
So why is broadcast radio still so popular in a world of content on-demand and a seeming abundance of choice?
The uniqueness of the medium lies in its ability to foster a two-way dialogue. Unlike some other media, broadcast radio is nearly always live, so it is unbridled, unscripted and transparent. Listening live delivers a shared experience, a human connection, and a sense of community as people collectively listen to the same content at the same time. This sense of communal consumption, which is becoming increasingly scarce in today’s fragmented media landscape, is mostly unique to live broadcast radio compared to any other medium, and it is extremely powerful.
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Audio advertising presents advertisers a perfect opportunity to reach an engaged and attentive audience
The Ipsos MRBI data shows increasing levels of penetration for technology, smartphone ownership (90 per cent) and smart speakers (40 per cent) enable easy access to live radio and all audio content at anytime, anywhere. The increase in smart speaker ownership is significant, having risen from 11 per cent ownership in 2018. Accessing audio content through devices such as smartphones and smart speakers provides advertisers with the ability to communicate in an intimate one-to-one environment, but with all the tracking, targeting, behavioural and contextual opportunities that you get from visual digital activity.
Less clutter
Unlike the cluttered environment of digital on screen, audio advertising in a digital platform is less cluttered as you do not have multiple messages competing for attention at the same time.
Audio advertising presents advertisers a perfect opportunity to reach an engaged and attentive audience.
Audio is at the heart of a lot of modern thinking within many broadcasting groups, both in Ireland and internationally.
Super serving
Wireless Group Limited (the owners of stations in UK and Ireland including Talksport, Virgin and FM104) launched Talk TV, a new television station, in the UK in April 2022 and although they have developed original programmes, 80 per cent of the content is video simulcast of audio content from their sister company, TalkRadio.
This is a fantastic example of taking the skill of audience understanding within an organisation and pushing it to more places to create a great multi-platform entity.
Bauer Media run a subscription radio service in the UK, which provides content ad-free and gives listeners the ability to skip live songs and get exclusive content and bonus stations, effectively super serving a certain type of audience.
The golden age of audio means broadcasters today can create different things on different platforms in different ways to satisfy a listener.
Revenue data
Innovation within audio has been very good for the sector from a revenue point of view. This year, for the first time, all operators in Ireland have co-operated to provide robust and detailed revenue data for the Irish market. This means we have full visibility of revenue based on the actual recorded revenues for every broadcaster in Ireland.
Audio’s share of the total advertising market in the Republic of Ireland is an estimated 12.6 per cent
The data shows that the Irish audio advertising market enjoyed revenues of €145.1 million in 2021 (excluding global players such as Spotify and Acast) with the sector enjoying growth of 18 per cent for the first six months of the year.
This annual profit figure is much larger than previous estimates and puts audio’s share of the total advertising market in the Republic of Ireland at an estimated 12.6 per cent. Although the income picture is strong, it could be even stronger as some European audio sectors enjoy a higher share of advertising money.
The power of sound
The reason audio revenue could be stronger in Ireland is that many advertisers fail to leverage the innate power of audio – the power of sound. Advertisers have an overreliance on visual elements and often neglect the aural senses. While the eye might be the input that people rely on most, it may not be the most potent one to kick start memories, provide salience or generate distinctiveness.
Hearing is the first sense humans develop; we experience sounds right from our time in the womb, which makes it hugely powerful. Sounds are recognised by the brain almost instantaneously, in 0.05 seconds. To put this in context, that is 10 times faster than the blink of an eye. And sounds can become instantly familiar when embedded into popular culture.
In an over-communicated world, there is a real opportunity for brands to harness the power of audio. An audio platform delivers a captive audience, which allows brands the time to craft their story. The absence of expensive production costs means advertisers can focus on pure creativity to tell their brand story in a very powerful way. Not enough brands are doing this, and the audio revolution is the perfect time to change.
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