With 2014 coming to an end, many industry leaders are sharing their predictions and what they expect from 2015. Pat Higbie, CEO of XAPPmedia, shares his thoughts on the new year ahead.
Pat Higbie’s Internet Radio Predictions for 2015
- Total listening hours on Internet Radio will grow by at least 50 percent in 2015. According to a recent report by the International Federation of the Phonographic Industry (IFPI), it states that by 2016, 30 percent of the world’s population will own a smartphone. This means there will be more than two billion potential mobile listeners. In 2015, we predict the number of listening hours will grow because the listening habits of consumers are shifting toward Internet Radio due to increased mobile use and unmatched convenience.
- Local advertising will become more prevalent on Internet Radio. Pandora has already proven that the local advertising business model works as it now accounts for 21% of advertising revenue and has contributed to rising CPM rates. Additionally, with Spotify looking to build local sales along with partner Triton Digital and iHeartRadio already having access to local markets, we expect the market to grow rapidly in 2015.
- The number of Internet Radio advertisers will increase five fold in the upcoming year as local advertisers start using the channel to reach growing audiences. Internet Radio publishers will respond to advertiser demand for more measurable consumer engagement and introduce Interactive Audio Ads to demonstrate higher ROI compared to other ad formats.