Amplifying Opportunities: Navigating the Future of Digital Audio Advertising in Africa

Dear Silverbacks Community,

We’re excited to bring you this special edition of IN THE VALLEY, where we explore the rapidly evolving digital audio streaming market, and introduce our latest partnership with OMNI. We’ll also outline OMNI’s unique value proposition and the strategic thinking that guided our decision to partner with them.

Market Trends and Opportunities in Digital Audio

The audio streaming sector has been growing exponentially, with engagement more than doubling compared to music streaming and approaching levels seen in video streaming. This sector boasts an average contribution margin of 70%, significantly higher than that of video content, thanks to lower production costs. Users increasingly prefer audio content for its accessibility and the ability to engage passively while multitasking. As a result, global ad spending in digital audio advertising is projected to reach $11.78 billion in 2024, growing at a compound annual growth rate (CAGR) of 6.4%. Notably, 78% of this spending is expected to come from mobile platforms. In Africa, with 613 million mobile phone users and 52 million micro, small, and medium enterprises (MSMEs) spending over $5 billion on marketing, the potential is vast.

The Rise of Audio Streaming and Its Untapped Potential in Africa

Despite the promising trends, Africa’s audio streaming market remains highly fragmented, presenting unique challenges across the value chain. Telecom providers, with their extensive distribution networks, often find themselves in competition with publishing companies for advertising revenue. This competition leads to tension as both sectors strive for financial sustainability. Additionally, advertisers are hesitant to invest in audio advertising due to a cluttered market and the lack of reliable listening metrics, which favors visual media channels. This reluctance is compounded by fragmented consumer access to digital audio platforms, resulting in fewer opportunities for radio listening and reducing the overall effectiveness of audio advertising. The current landscape leaves both advertisers and consumers navigating a complex environment.

OMNI: Disrupting the Audio Streaming Landscape in Africa

OMNI is set to address these challenges as the first Pan-African, 24/7, data-free streaming service. Designed for scalability, OMNI aims to deliver the excitement of live and on-demand sports content to audiences across the continent. By broadcasting directly to cellular phones via telecom infrastructure, OMNI operates without the geographic limitations of traditional FM radio. Unlike potential competitors who focus heavily on content and hope to reach users, OMNI’s strategic partnership with MTN provides unparalleled access to mobile users across Africa. This positions OMNI to capture the market effectively.

OMNI offers specialized audio shows featuring top-tier production quality, ensuring an exceptional listening experience. Additionally, OMNI generates revenue by offering advisory services, charging consultation and media booking fees. Telcos benefit from increased data usage driven by OMNI’s services, while consumers enjoy easy access to high-quality content through extensive telecom distribution networks. This model is advantageous for all stakeholders, solidifying OMNI’s competitive edge in the industry.

OMNI’s Live Radio streams for 35 million subscribers in Africa, and you can listen free NOW or subscribe by clicking here?

Silverbacks and OMNI: A Strategic Partnership

We are thrilled to announce that our podcast will soon be featured on OMNI’s innovative platform, launching in partnership with MTN across Africa. This collaboration will significantly enhance our reach and impact. Beyond the podcast, OMNI’s wide distribution and extensive sports coverage will also be leveraged to promote other Silverbacks-backed products. Our partnership with OMNI further strengthens our presence across the continent and aligns with our broader strategic goals.

Seizing Opportunities in the African Digital Audio Market

The African digital audio advertising market is brimming with opportunities, despite its fragmentation. OMNI’s innovative approach, coupled with Silverbacks’ strategic partnership, positions us for growth and greater impact across the continent’s audio streaming landscape.

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