Web Radio Monitor 2016 to be presented by BLM, BVDW and VPRT at the dmexco 2016 - internet radio and online audio advertising set for further expansion
• Internet radio and online audio providers in Germany expect 35 percent plus in advertising revenue by 2018
• Share of mobile advertising due to increase from 31 percent to 46 percent
• Providers show strong interest in standardised reach measurement
• Online audio listeners already consume 48 percent of radio and music online
• 77 percent prefer advertising to fee-based online audio offerings
• Particularly intensive use of live radio and music streaming
Berlin, 12 September 2016 Providers of internet radio and other online audio offerings in Germany are recording rapid growth in usage and advertising revenue in 2016 and anticipate sustained high growth momentum over the next few years. At the same time, use of radio and music by online audio listeners in Germany shows an increasing shift towards online and mobile audio offerings. For the advertising market, internet radio and online audio advertising environments are becoming more and more attractive. This has emerged from the initial findings of the Web Radio Monitor 2016 published by the Bavarian State Authority for New Media (Bayerische Landeszentrale für neue Medien, BLM), German Association of the Digital Economy (Bundesverband Digitale Wirtschaft, BVDW) and the German Association of Commercial Broadcasters and Audiovisual Services (Verband Privater Rundfunk und Telemedien, VPRT) in the run up to the dmexco exhibition.
Siegfried Schneider, President of the Bavarian State Authority for New Media (BLM): "The internet radio and online audio market in Germany continues to develop with high momentum, providing a basis for innovation, added diversity and further growth in the radio market. The Web Radio Monitor 2016 documents this development, thereby offering an up-to-date factual basis for clarifying commercial and political issues."
Rainer Henze, Chairman of the Audio Focus Group at German Association of the Digital Economy (BVDW) and founder and Chief Executive Officer of laut ag: "Online audio advertising is no longer in its infancy and meanwhile plays an important role in the German advertising market. Its growth driver is the constant increase in online audio use, coupled with outstanding advertising appeal and the digital modulation possibilities offered by the internet. Users benefit from an unprecedented diversity of offerings. Online media agencies and their advertising clients are learning to value these advantages more and more."
Klaus Schunk, Chairman of the Radio and Audio Services Department at the Association of Commercial Broadcasters and Audiovisual Services in Germany (VPRT) and Managing Director of Radio Regenbogen: "Internet radio is becoming increasingly popular among German consumers, established VHF services being the drivers in the internet. Their live streams are already some of the most successful offerings and there is also an encouraging trend towards radio-on-demand usage. As a result, radio and audio are generally gaining importance in the advertising market."
For the first time, users as well as providers were interviewed as part of the survey conducted for the Web Radio Monitor, and their feedback taken into account for purposes of the analysis. Based on this, 48 percent of the entire audio and music consumption among online audio listeners (from the age of 14), including the use of radio and internet radio, already takes place online, according to estimates made by the respondents, and as much as 60 percent in the case of 18 to 23-year-olds. The demand for live radio and music streaming is particularly high – headed by the classic radio brands, with at least occasional use being made of simulcast radio services (one-to-one transmission of a classic radio station via the internet) by 76 percent of the respondents, followed by video streaming services (53 percent), music streaming services (48 percent), online sub-brands offered by classic radio stations (32 percent), online-only radio (31 percent), podcasts (16 percent), radio aggregators (11 percent) and user-generated radio (5 percent). In the course of the day, simulcast radio services dominate usage from morning until midday, while during the afternoon and evening, music streaming services are the offerings most frequently used. Furthermore, advertising enjoys a generally high level of acceptance among the respondents, with 77 percent of respondents preferring advertiser-funded offerings to fee-based online audio services.
The majority of internet radio and audio providers interviewed have registered increases in both streaming and on-demand access during the past year. Almost every third offering (32 percent) is accessed via a mobile device. By 2018, providers expect on average a further increase of 19 percent in streaming data access, resulting mainly from a strong rise in mobile access, which is expected to account for 45 percent of the entire volume as early as 2018.
At the same time, providers anticipate continuing growth in advertising revenue. Based on an estimated net advertising volume of some 17 million euros on the part of internet radio and online audio providers (audio and display advertising) during the past year, a further increase in net advertising revenue to just under 40 million euros (+35 percent per annum) is expected for 2018. Over the same period (2015 to 2018), a rise in the share of mobile advertising from 31 percent to 54 percent is predicted. According to estimates by the online audio providers interviewed, programmatic advertising revenue amounted to only 0.3 percent over the past year and could reach 2 percent during the current year. Over the next few years, respondents are however expecting the importance of programmatic advertising to increase, reaching 11 percent by 2018.
Apart from the positive trend in internet radio and online audio usage, the ongoing establishment of a standard advertising currency remains a growth driver, almost all providers being of the opinion that this enhances marketing opportunities for their own offering. As a result, there is also great interest on the part of professional providers which do not yet participate in the standardised reach measurement system, two thirds of them intending to link up with the standardised reach measurement system in future.
Initial partial publication of the Web Radio Monitor 2016 (with focus on advertising)
on 14 September 2016, 14.00-14.45 h, Seminar Room 1, Cologne Exhibition Centre
Full publication of the Internet Radio Monitor (all results)
on 26 October 2016, 16.15-18.00 h, ICM Munich
Sponsors and methodological notes
The Web Radio Monitor 2016 was commissioned by the Bavarian State Authority for New Media (BLM), German Association of the Digital Economy (BVDW) and the German Association of Commercial Broadcasters and Audiovisual Services (VPRT) and carried out by the Berlin-based research institute Goldmedia. In addition to internet radio and online audio providers, online audio listeners in Germany were also interviewed for the first time this year. The online survey took place between 8 June and 14 July 2016.
BLM: Head of Strategy and Digital Development, Stefan Sutor
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BVDW: PR Manager, Tim Sausen
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VPRT: Press Spokesman Hartmut Schultz, Hartmut Schultz Kommunikation
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