XAPPmedia: Internet Radio Ad Load Q2 2015 Report

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XAPPmedia has released its Internet Radio Ad Load Q2 2015 report, according to Pat Higbie, CEO and Co-founder (pictured at left). XAPPmedia is an interactive audio advertising provider that works with Internet radio publishers, including NPR. The report measures the commercial loads of five pureplays and results showed that both the ad load and number of advertisers rose over the previous quarter.

Some findings include:

* The Advertisers: Taco Bell, GEICO and NAPA had the heaviest spot rotation during the quarter and the presence of local advertisers nearly doubled from the quarter before.

*The Load: Ad load rose about 10% from Q1. The average ad load from Q2 was two minutes and 32 seconds (2:32), up from 2:18 in the previous quarter

Ad load for Internet radio is still only about 22% of that found in a typical hour of broadcast radio listening.

* Local Surge There was a significant increase in the number of advertisers on the five Internet radio publishers tracked. Advertisers in Q2 totaled 149, a 26% rise over the previous quarter and our largest quarterly total to date. Unique advertisers identified each month ranged from 67 in April to 82 in May.

The number of local advertisers nearly doubled from the previous quarter. In Q2, 21% of advertisers identified were local, up from 15% in Q1. This trend suggests Internet radio publishers are clearly making an effort to broaden the advertising base beyond national advertisers.

What’s the Limit?

eMarketer and others have reported that most publishers believe they can optimize listener growth by limiting ad load to no more than three minutes per hour. Given the current level of 2:32 per hour, publishers could increase ad load by nearly 20% before reaching the three-minute threshold, but there is always risk when increasing ad load in the highly competitive Internet radio market. For now, it looks like ad load is seeking equilibrium between 2.5-3.0 minutes per hour.

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