“Digital Audio Advertising Overview” Released by IAB
Report Showcases Scope and Diversity of Digital Audio Audience and Outlines Opportunity for Marketers
NEW YORK, NY (September 28, 2010) — The Interactive Advertising Bureau (IAB) today introduced its “Digital Audio Advertising Overview” Platform Status Report, which defines the digital audio category and provides a snapshot of the marketplace audience size and demographics as well as outlining the players in the market, the vehicles currently used to deliver content and advertising formats, and some of the most important metrics for measuring success. The announcement was made at the IAB’s sixth annual MIXX Conference and Expo in New York City where leaders from across the marketing and advertising industry converge for the most influential digital media summit.
The report is the first from the IAB’s new Digital Audio Committee, a forum for industry leaders to discuss issues, promote the platform and find ways to make it easier and more appealing for buyers of advertising.
“Music forms the soundtrack to our lives and, increasingly, that soundtrack is being delivered digitally, often via the Internet,” said Randall Rothenberg, President and CEO, IAB. “Advertisers have taken note of this, and marketers are incorporating digital audio into their campaigns across a number of significant verticals.”
An Arbitron and Edison Research study from April 2010 indicates that about 27 percent of U.S. online users, or roughly 70 million individuals, listened to online radio in the previous month. Seventeen percent, or about 43 million people, listened to online radio in the previous week. Tapping into this audience represents an enormous opportunity for advertisers to increase the reach and effectiveness of both terrestrial radio and digital/web ad campaigns.
“The digital audio market opportunity continues to grow very rapidly and we expect 2010 to finish as one of the most successful years to date,” said Brian Benedik, President, Katz360, and Digital Audio Committee co-chair. “We foresee an even bigger year in 2011, so there is an immediate need for us to educate and align media companies, agencies, marketers and even users on how we can optimize advertising within the digital audio platform.”
“The landscape of companies participating in the digital audio sector is broad and diverse and encompasses both the traditional radio world as well as pure-play digital natives,” said Andy Lipset, President, TargetSpot, and Digital Audio Committee co-chair. “This report lays out common terminology and definitions for digital audio advertising, so that the industry can speak with the same language, and it highlights the platform as a viable and exciting channel for interactive advertisers.”
The Digital Audio Committee was formed last December with the goal of establishing industry guidance through standards and best practices to help bring clarity to the audio marketplace. The committee strives to educate marketers and agencies about the value of audio as a powerful and effective advertising medium.
The committee consists of various players in the audio ecosystem and the IAB is actively looking to increase its size by encouraging interested parties to become members of the IAB. Current committee members include:
- Clear Channel Radio
- Cox Cross Media
- Cybage Software
- Interactive One
- Pandora Media
Brian Benedik and Andy Lipset are available to discuss the report and the committee’s observations at the MIXX Conference & Expo in New York City today. In addition committee member Tim Westergren, founder and chief strategy officer for Pandora, is speaking on the IAB MIXX main stage today at 10:30AM about how his company is creating a more personalized digital-audio in-car experience with the Ford Motor Company.
About the IAB
The Interactive Advertising Bureau (IAB) is comprised of more than 460 leading media and technology companies who are responsible for selling 86% of online advertising in the United States. On behalf of its members, the IAB is dedicated to the growth of the interactive advertising marketplace, of interactive’s share of total marketing spend, and of its members’ share of total marketing spend. The IAB educates marketers, agencies, media companies and the wider business community about the value of interactive advertising. Working with its member companies, the IAB evaluates and recommends standards and practices and fields critical research on interactive advertising. Founded in 1996, the IAB is headquartered in New York City with a Public Policy office in Washington, D.C. For more information, please visit www.iab.net.
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