In recent years, the penetration rate of smartphones among individuals has increased significantly. Many people have probably used audio media such as Internet radio or digital music (digital data music that is streamed or downloaded to listen to) services through their smartphones. In addition, Clubhouse, which has become popular this year, has been well-received for its ability to easily listen to audio content that interests you from the comfort of your own home, and the number of users has increased rapidly. According to the survey results announced by LINE Research in April 2021, the recognition rate of Clubhouse is as high as 69%. Approximately 60% to 80% of people across a wide range of generations, from teenagers to those in their 50s, are aware of the product, which shows that it has penetrated a wide range of age groups in a short period of time. I think the popularity of Clubhouse has made it more familiar to use voice services using smartphones, but it has been used by many users around the world for a while. Currently, the number of users of digital music services alone, which is one type of audio media, exceeds 1.3 billion worldwide, and the number of users is expected to continue to increase in the future. Since it is audio only, it is often listened to while driving, working or doing housework, and is popular with users for being easy to incorporate into their daily lives.
At the same time, the audio advertising market related to audio media is also showing rapid growth. Here, we will introduce in detail the basics of what audio advertising is, the market size of audio advertising, and the audio media and strengths that can be used for audio advertising.
What is audio advertising?
When hearing the word audio advertising, many people may think of radio commercials (radio advertisements), but it also refers to advertisements placed on audio media such as radio, music streaming services such as Spotify, and internet radio. point. Audio advertising is also called audio advertising or digital audio advertising. Audio-only advertising is mainly radio advertising and was not called audio advertising in the past, but with the spread of services such as digital music services in recent years, it is now called audio advertising (audio advertising/digital audio advertising). Now it looks like this. Audio ads can be delivered between music streaming services or internet radio, and can be anywhere from 15 to 60 seconds in length.
Audio advertising market size
In Japan, there are still few opportunities to hear audio advertising, but in the United States, it is a growing market with advertising revenue exceeding $3 billion (approximately 335.7 billion yen) in 2020. It has grown 10 times over the past six years, and is said to be about the same size as the Japanese radio market by the end of this year.
Although audio advertising is still relatively unfamiliar, it is a rapidly growing market in Japan. According to a survey conducted by Digital Infact in February-March 2020, the market size of digital audio advertising was 700 million yen in 2019, but in 2020 it was 1.6 billion yen, an increase of 229% from the previous year. It becomes. It is said that the market will reach 42 billion yen by 2025, making it a market that is attracting attention for future growth.
The reason behind the rapid growth is the increase in the number of users. According to a survey by Otonal Co., Ltd. and Asahi Shimbun Co., Ltd. announced in January 2021, the number of users of podcasts, a type of internet radio, in Japan is estimated to exceed 11.23 million people. . Among them, 47.1% started listening to podcasts within the past year, which shows that the number of users has rapidly increased in this short period of time. Due to the effects of the coronavirus, which has continued since last year, people are spending more time at home, and this is also a tailwind, and the audio media and audio advertising industries are expected to continue to grow rapidly.
Audio media that allows you to place audio ads
Here we will introduce four audio media in which you can place audio ads.
−Spotify
Spotify is a streaming service with over 70 million songs and 2.6 million podcasts and content. It was founded in Sweden in 2006. As of 2021, the number of users is 356 million, of which 158 million are paid members, making it the world’s largest music distribution service. The service started in Japan in September 2016. Compatible electronic devices include computers, smartphones, tablet devices, and game consoles.
Basic features like music playback are now free, allowing you to search for the music you want to listen to, create a music collection, see what friends and artists you care about are listening to, and create your own personal Radio station. Paid plans vary in what you can do depending on the amount, but you can listen to music without ads and share the playlists you create with others.
Spotify’s audio ads allow up to 30 seconds of audio ads to be delivered between songs. The feature is that advertisements can be distributed according to user attributes (age, gender, area of residence, music genre, etc.) when using the Spotify app.
-radiko
radiko started operations in Japan in 2010. The slogan is “Enlarge the world with sound.” It is a free audio service that allows you to listen to radio on your computer or smartphone. Currently, this service is only available in Japan.
You can listen to radio stations in the area where users are located, and some programs have a time-free feature that allows you to listen to programs from within the past week. Also, if you become a paid premium member, you will no longer be restricted by area and can listen to programs from all over Japan if they are registered for area-free listening.
In the spring of 2020, the number of monthly unique users exceeded 9 million, the highest ever, and each user listened for about 130 minutes a day. 99 radio stations from all over Japan are participating, and if you are a paid member, you can listen to radio stations from all over Japan at any time that is convenient for you, without a limit on the number of programs.
radiko’s audio advertisements have replaceable ad slots on broadcast stations all over the country, and you can insert ads between each piece of content.
−Podcast
Podcast is a type of Internet radio and Internet television, and is a service that allows other users to listen to audio and video data files by uploading and publishing them on the Internet. Since podcasts can be created by individuals, the content is wide-ranging, and the genres that can be listened to through podcasts include news, music, comedy/comedy, society/culture, TV shows/movies, sports, business, health/fitness, education, art, etc. . Podcast is a coined word combining Apple’s iPod and broadcast, which means broadcasting, and is a feature that has been included in iPhones and iPads since the beginning.
Podcast audio advertising “Podcast Audio Ads” has the ability to pay advertising costs based on the number of downloads and to target users based on user attributes (age, gender, area of residence, music genre, etc.). This makes it possible to place audio ads that are charged based on the amount of ads delivered according to the budget, and when the budget limit is reached, ad insertion will be automatically stopped.
−J-WAVE
J-WAVE is an FM radio station in Tokyo. It was established at the end of 1987 and began broadcasting in October of the following year. It was the second commercial FM station to open in Tokyo. In 2006, we operated Japan’s first free Internet distribution service specializing in music programs, “Brandnew J “Just Like Radio,” and in August 2006, we launched “J–” an Internet service provider business mainly targeting the Tokyo metropolitan area. WAVE@NET” has been launched. This is the first example in Japan of a broadcasting station itself embarking on a provider business to integrate the Internet and broadcasting.
With “J-WAVE Podcast Audio Ad”, J-WAVE distributes digital audio advertisements in the ad space of podcast programs distributed to various websites, podcasts, and smart speakers, allowing you to place advertisements according to your budget. A feature of this service is that you can place advertisements at a cost that is based on user attributes (age, gender, area of residence, music genre, etc.) and the number of advertisements placed. It is also possible to support “date and time targeting” that specifies the distribution date and time or day of the week, “area targeting” that specifies location information such as country or prefecture, and “device targeting” that distributes only to specific devices.
5 strengths of audio advertising
− High complete listening rate
If you have subscribed to a paid audio media service, you can skip the advertisements that play in the middle, but if you are using audio media for free, you cannot skip the advertisements. You will listen to it from beginning to end.
Since audio ads have a high probability of being delivered to the users to whom they are delivered, there is a high possibility that they will be interested in the ad itself.
−Advertise advertisements smoothly
Advertisements are often disliked because they contain information that is out of touch with what people originally want to see, are questionable, and are displayed repeatedly. Among these, audio advertisements are said to be a stress-free type of advertisement that can guide users. Audio media can be listened to while driving, working or doing housework, and it is possible to make people feel less stressed by placing advertisements between the contents. .
− Users can be guided to advertisements that are of interest to them.
Since audio advertisements are distributed over the Internet, they have the advantage of being able to collect detailed user data such as the age, gender, interests, time of day, and location of those actually viewing the ads before posting the ads. Since it is possible to collect more detailed data on personal information such as user viewing history than before, it is possible to create advertisements that are more tailored to the customer’s perspective.
-Hearing it with your ears makes it easier to remember
According to a study on memory in advertising, it is said that the human voice tends to convey the speaker’s emotions more easily than music, and it tends to convey information more efficiently. Additionally, audio ads are more likely to be remembered than visual advertisements such as billboards or visible ads.
It is said that listening to music is more likely to be remembered, encourage people to purchase a product or service, and increase brand awareness.
-Relatively lower advertising costs
Since it is an audio-only advertisement, it is possible to create it at a lower price than traditional video advertisements. As I mentioned earlier, since it is possible to collect detailed data on actual viewing users, it is also possible to create advertisements that are more interesting to users.
Weaknesses of audio advertising
The weakness of audio advertising is that it provides guidance only through audio, which makes it difficult to provide guidance if it is something that is not very familiar or recognized in people’s lives.
Also, the number of viewers in Japan is still small compared to television. As a result, fewer people will listen to the advertisement itself. The number of users is expected to increase in the future, so once the number of users reaches a certain level, there will be no problem.
Deployment of audio advertising
It is said to be effective to launch advertisements that combine auditory and visual elements, such as combining web advertisements such as banners, in addition to audio advertisements alone. A method called retargeting is used to deliver advertisements to users once and guide them again, making it easier for them to apply for services or make purchases. This is actually something that is actively used in American podcast advertising.
summary
Here, we have introduced the basics of what audio advertising is, as well as the market size, audio media, and the strengths of audio advertising.
Until now, radio advertising has been the mainstream, but with the spread of various streaming services and internet radio, a new term has been born: audio media. Due to the characteristics of voice advertising services that use the Internet, it is possible to place advertisements that match user attributes (age, gender, area of residence, music genre, etc.), and direct advertisements to a group that is closer to potential customers. It is possible to. Additionally, it is said that more effective advertising can be achieved by combining auditory and visual advertising, such as combining web advertising such as banners in addition to audio advertising.
The number of users of audio media, which is popular for its ability to easily watch content that interests you while driving, working or doing housework, is increasing year by year, and I think it will continue to attract attention in the future. Masu. It is said that the audio advertising industry will reach 42 billion yen by 2025, so if you are interested in audio advertising, please use this as a reference.