Initially, the radio industry was limited to terrestrial (AM/FM) broadcasting. However, with digitisation, the radio broadcasting industry has undergone a tremendous advancement. The introduction of Internet Radio was a revolution that made radio accessible to even more people. Technically, everyone with a smartphone, tablet, or a PC can access the internet radio.
As a result, online audio and podcasting audiences have grown enormously over the past decade. This ardently brought down the revenue for news radio stations. Besides this, this revolution also brought down the audience for terrestrial radio. According to Nielsen Media Research data published by the Radio Advertising Bureau (RAB), 89% of Americans ages 12 or older listened to terrestrial radio in a given week which is reduced to 83% in 2021.
Internet Radio Statistics
Internet Radio (also called web radio, net radio, streaming radio, IP radio, online radio) is an audio service transmitted digitally using the internet. Unlike the traditional terrestrial radio, the internet radio doesn’t require a special setup to receive the broadcasted audio. It can be accessed on any device with an internet connection.
Internet Radio Market
There are many big players in the internet radio market, and Spotify tops the race with a record 27.63% cap of the Global Internet Radio revenue market share in 2019. Following Spotify are Apple Music, Amazon Music, and Tencent Music with 21.39%, 15%, and 8.68% respectively. In the United States, in March 2021, iHeartRadio became the leading online radio company with around 308 thousand active sessions throughout the month.
Most online radio services offer a subscription service for the users to have an ad-free listening experience. At the same time, some provide an option to listen to the radio with audio ads in between the content. This way, online radio services make money.
It is expected that, by 2027, the Global Internet Radio market size will hit USD 59990 million from USD 30610 million in 2021, at a CAGR of 10.1% during 2021-2027.
Internet Radio Advertising
With the inevitable growth of internet radio and its wider accessibility, it is an ideal platform for brand endorsements. With repetitive playing of the same advertisement, the brand is implanted into the listener’s mind, making it more recognizable. Bigger brands in the US such as Verizon, Burger King, Home Depot, Walt Disney, and Coca-Cola are some of the biggest spenders on online radio advertising.
Why should you advertise on Internet Radio?
Establishing a bond
It is believed that over 25% of those that listen to a brand advertisement on the radio are likely to remember it, According to a study. This is probably because of the impact that the human voice creates. A human voice can help establish a connection with others. Besides this, the music, jingles, and other elements that you add to your radio ad can also help in creating a strong bond with the listeners.
The budget plays a very crucial role when running an ad campaign. You must make the most out of each penny you shell out. Internet radio advertising is an apt fit if you are on a tighter budget yet expecting a wider ad reach.
Usually, the online radio advertising costs depend on the airtime’s value. It is charged based on the spot. The charge varies depending on the number of listeners, time of the day when the ad is aired, etcetera.
The average advertising costs for some of the popular internet radio platforms are as follows.
|Pandora||Starting at $1,500 monthly|
|Sirius XM||$10,000 minimum weekly|
|iHeart Media||$5,000-$25,000 weekly|
|Spotify Ad Studio||Starting at $250 for the self-service platform and $25,000 for others|
The online radio industry has seen an enormous increase over the past two decades. Earlier in 2002, the total digital advertising revenue used to be 18 million, which has hit a whopping 949 million in 2019. This is because of the overall increase in the number of listeners.
Every marketer wants to target active audiences. Targeting the inactive audience is a waste of time and resources. With online radio advertising, you only pay for the real reach. This can be very advantageous and cost-effective too.
Thanks to internet radio advertising, targeting the audience has never been so easy. You can reach the audience that matters to you the most. This can be very advantageous for local businesses.
Internet Radio Revenue Statistics
With the advent of digitization, the number of listeners to internet radio has also gone high. As a result of this, the revenue for online radio services has also skyrocketed. According to Statista, the revenue for iHeartMedia alone hit a record 359 million U.S. dollars through broadcast radio activities in the first quarter of 2021. The below is a breakdown of iHeartMedia’s revenue breakdown in the first quarter of 2021.
Some Interesting Facts about Internet Radio
- About 68% of the U.S. population listened to the online radio in the past month in 2021, which was about 34% around 2012.
- Weekly online radio consumption in the U.S. has increased from 12% to 62% between 2007 and 2021.
- iHeartRadio is the biggest online radio company in the United States that has an average active sessions figure of over 300 thousand.
- In 2021, over 940 million dollars of revenue was generated by the online radio streaming services in the United States.
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Frequently Asked Questions
- What is the market size of the Internet Radio Broadcasting industry in 2021?
In 2021, the market size measured by revenue of the Internet Radio Broadcasting Industry is $3.6bn.
- What are the insights of the Internet Radio Broadcasting industry in the US over the past 5 years?
The Internet Radio Broadcasting industry in the US has seen a steady growth of 1.6% per year in terms of market size.
- Is the Internet Radio Broadcasting industry going to see any growth in 2021?
It is expected that, in 2021, the growth rate of the Internet Radio Broadcasting industry will be increased by 4.8% in terms of market size.