We are back with another industry report!
- RAB’s Radio Advertising President, Erica Farber, explained that people seem to still see radio as a physical item linked to AM/FM stations, but the scope of radio is so much more than that in 2022! Now, radio content can be accessed on any device.
- What makes radio so unquestionably unique compared to the vast amount of advertising options is that it maintains the ability to connect with local audiences, all hearing the same ad at the same time. “On other audio platforms, we're not reaching a particular audience at the same time with the same impact.” - Erica Farber?
- Being able to reach an audience all at once allows radio advertisers to see their impact clearly.
- Overall in Q2, ad spend was down, but? podcast ad spend was an exception. Audio companies are reporting an overall growth in podcast ad spend in Q2?
- The main shift in podcast ad spend for advertisers is adopting a response driven campaign, rather than a growth oriented campaign. Tracking ROI more closely allows advertisers to see the value of their dollar, which is hugely important during a recession when every dollar counts.
- Jonathan Corne, CEO of Athletics Greens (a top 5 podcast advertiser), said in an interview that podcast advertising is about “the long game,” - it’s important to assess ROI and pivot if necessary, but finding “that sweet spot between brand and performance,” is very important.
- With the rapid growth of podcast networks (there are now more than 3 dozen), small podcasters are deciding whether to stay independent or join a network.
- The general consensus is that joining a network brings in new listeners and, of course, new and exciting advertisers. “What we have seen pretty consistently is when we have a show come into the network, it just naturally vaults in the charts. That’s without doing anything,” said Mary Assadullahi, VP of Realm.
- Once listener numbers grow for these smaller podcasts, networks can then offer them opportunities to bring in more revenue. This allows small podcasters to continue making a show their audience loves, without having to sacrifice money they may not have otherwise had to continue producing the show.
- Private labels are benefitting from the recent economic downturn. When consumers go shopping and see a stark increase in price of their favorite shampoo for example, they go looking for the budget option from private labels. Private label brands made up 6.8% of Sephora’s revenue in June ‘22 which is an upturn despite overall sales being down 17%
- Security - a whistleblower has claimed that Twitter brushed significant security flaws under the rug, leaving users personal information at stake and potentially threatening national security.
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