For today’s DG I’m going to stray from the usual format. Instead of a handful of different articles I’d like to focus on one comprehensive Magna Global research study about the State of Audio. (MAGNA State of Audio) It’s an amazingly in-depth piece which covers all aspects of Audio supply, demand, and new value drivers for the sector. I’m featuring this on a Friday so you can curl up with it over the weekend. 😉 In all seriousness, if you work in audio-based media this is a must read!
It’s a fairly complex piece, so here are a few notables:
FROM AM TO AMAZON: For starters check out the timeline of the history of Audio below. From the invention of Amplitude Modulation (AM Radio) around 1900 to Amazon’s first AI-driven Echo connected speakers in 2014, we’ve come a long way. It’s interesting to see how the rate of technological change is starting to accelerate in what had been a mature industry for decades. It would be fascinating to jump in a time machine and check out this updated timeline 50 years from now. I’m guessing Audio will be as ubiquitous as the air we breathe by then.
SHARES GETTING SQUEEZED: The next graph shows the different media types’ percent of ad revenue over the years. Not surprisingly the legacy medias (TV/Print/Radio) are in a period of decline as ad dollars migrate to digital. Of the three traditional media types Radio has held its share the best over the last 10 years, but that’s beginning to change. Broadcast Radio’s slice of the ad pie, which once stood in the low teens, is now at 7%, and is projected to decrease to 5% within the next five years.
AD REVENUE ALWAYS FOLLOWS USAGE: So where’s the Audio revenue going? For the answer check out the next graph. Audio streaming dollars from pureplay publishers (Pandora, Spotify, etc.) are beginning to cannibalize Radio’s revenue base. According to Magna’s forecast, by 2022 streamed audio ads will generate over $3.3B of ad revenue in the US, which will comprise 30% of the total Audio spend.
SO WHAT’S NEXT?: Towards the end of Magna’s report they highlight the key growth drivers for the future of Audio. It comes down to three things . . . Connected Home, Connected Car, and Voice-based Search. Each of these platforms have two things in common. They increase overall Audio consumption and allow for digital ad delivery. The perfect combination to grow an industry! There are too many charts in this section to highlight, so check out pages 21-22 of the report for details.
I know this is a big read, but it’s important stuff. Hopefully you found it as enlightening as I did.
Have a great Friday (and weekend) guys!
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Your dedication to sharing knowledge is unmistakable, and your writing style is captivating. Your articles are a pleasure to read, and I consistently come away feeling enriched. Thank you for being a dependable source of inspiration and information.
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I must applaud your talent for simplifying complex topics. Your ability to convey intricate ideas in such a relatable manner is admirable. You’ve made learning enjoyable and accessible for many, and I deeply appreciate that.
Your passion and dedication to your craft shine brightly through every article. Your positive energy is contagious, and it’s clear you genuinely care about your readers’ experience. Your blog brightens my day!
Your passion and dedication to your craft radiate through every article. Your positive energy is infectious, and it’s evident that you genuinely care about your readers’ experience. Your blog brightens my day!
I am continually impressed by your ability to delve into subjects with grace and clarity. Your articles are both informative and enjoyable to read, a rare combination. Your blog is a valuable resource, and I am sincerely grateful for it.
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Your storytelling prowess is nothing short of extraordinary. Reading this article felt like embarking on an adventure of its own. The vivid descriptions and engaging narrative transported me, and I eagerly await to see where your next story takes us. Thank you for sharing your experiences in such a captivating manner.
I couldn’t agree more with the insightful points you’ve articulated in this article. Your profound knowledge on the subject is evident, and your unique perspective adds an invaluable dimension to the discourse. This is a must-read for anyone interested in this topic.
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I’m genuinely impressed by how effortlessly you distill intricate concepts into easily digestible information. Your writing style not only imparts knowledge but also engages the reader, making the learning experience both enjoyable and memorable. Your passion for sharing your expertise shines through, and for that, I’m deeply grateful.
Your storytelling abilities are nothing short of incredible. Reading this article felt like embarking on an adventure of its own. The vivid descriptions and engaging narrative transported me, and I can’t wait to see where your next story takes us. Thank you for sharing your experiences in such a captivating way.
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In a world where trustworthy information is more crucial than ever, your dedication to research and the provision of reliable content is truly commendable. Your commitment to accuracy and transparency shines through in every post. Thank you for being a beacon of reliability in the online realm.
Your storytelling prowess is nothing short of extraordinary. Reading this article felt like embarking on an adventure of its own. The vivid descriptions and engaging narrative transported me, and I eagerly await to see where your next story takes us. Thank you for sharing your experiences in such a captivating manner.
Your passion and dedication to your craft radiate through every article. Your positive energy is infectious, and it’s evident that you genuinely care about your readers’ experience. Your blog brightens my day!
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