It isn’t just radio brands trying to get a piece of the digital audio pie, Spotify is courting clients with data. The streaming brand partnered with the World Advertising Research Center to conduct a study to push Consumer Packaged Goods and Retail brands to the company’s music and podcasts. The research shows that despite consumers spending 20% of their media time on digital audio, CPG and Retail brands allocate only around 1% of their media marketing investment to the channel.
WARC goes on to explain that 64% of Retail and CPG marketers plan to increase advertising in podcasting, while 55% expect to spend more on music streaming. According to research conducted by Neuro-Insight, digital audio exhibits higher levels of engagement compared to other media channels. On average, digital audio’s engagement levels were found to be 14% higher than TV, 18% higher than social media, and 23% higher than terrestrial radio.
The report has case studies and testimonials from PepsiCo, IKEA, Instacart, Nestle, Kellogg Company, and Kruger Products. While some of these do mention Spotify by name, it can be a good sign for radio that terrestrial and streaming radio are mentioned in their marketing plans. It’s up to radio to determine how much of that pie it gets.
