How should streaming music sites be viewed by advertisers?
I was reading an article on the success of streaming music sites, such as Pandora and Spotify. One of these companies’ main concerns is the need to grow their ad revenue at the same rate as their popularity. From an advertiser’s standpoint, as we begin exploring these new placement options, it needs to be decided from which of our current budgets (assuming they can’t be increased) will we pull money from to incorporate this new investment? Should the medium be viewed as digital media, or should it be viewed as a replacement for traditional radio.
I believe the latter is the most logical. Granted, these streaming music outlets are technically online and digital in nature, they are being accessed more and more every day by users as supplements and even replacements to traditional radio. Pandora and Spotify (to name a couple) applications are being downloaded to smartphones and plugged into car stereos on the road; they are being listened to with headphones during a jogger’s run; even from 8 to 5, listeners tune-in from their work desks.
To me, this seems to be a major amount of time that was traditionally dedicated to radio that is now shifting to streaming music sources. We as advertisers have to move where the audience is. If the audience is shifting its listening patterns from radio to more streaming music sites, tell me, why wouldn’t advertiser dollars follow suit?