7 Trends for advertisers in 2024

7 trends for advertisers to watch in 2024

1. Stability in digital ad spend. Next year, US digital ad spend will hit $306.94 billion, up from $270.24 billion this year.

2. The loss of cookies will lead to consolidation. With Google’s full phaseout of cookies set for 2024, expect a push for mergers and acquisitions among ID providers.

3. AI will continue to make its mark. generative AI will become more widespread in: a) Creative ideation and media planning. b) ID-free targeting: Generative AI is supercharging the process of targeting groups of people based on context, rather than just trying to pinpoint individuals based on identity signals

C) Search: Expect more generative AI-powered tools and algorithms in social search.

4. Nielsen’s role in TV measurement will evolve

5. Increased demand for cohesive digital experiences. Better and more user-friendly ways to navigate and avoid content fragmentation spread out among different services. It could also mean more bundling.

6. Ad-supported streaming will be more popular. US ad-supported video-on-demand viewers will reach 180.2 million in 2024.

Apple TV+ will likely be the last major streaming service to launch an ad-supported tier.

7. Smaller social walled gardens will continue to reduce use of mass social media platforms due to negative environments, bullying & conspiratorial tendencies.

with thanks to eMarketer & Insider Intelligence

Radio's Use of 1970s Research Is a Problem

Radio has utilized a decades old research technique to measure 2023 music consumption,

Consumer-facing companies from Procter & Gamble to McDonalds to your local grocery store today are all utilizing sophisticated market research tools to improve customer satisfaction to advance their businesses. The majority of today’s radio industry companies do not.

Does this make sense?

Is it part of the reason radio continues to inaccurately reflect true music consumption?

For decades, traditional radio has been using a research technique called "call-out," where listeners are asked to rate songs based on a brief snippets or “hooks”. The goal of this research is to determine which songs are most popular with audiences so that radio stations can adjust their playlists accordingly.

However, as technology has evolved, the limitations of call-out research have become increasingly apparent. In contrast, new methods of measuring music consumption, such as on-demand streaming services like Bridge Ratings' STREAMSTATS, are providing radio stations with much more accurate data about what listeners are actually consuming.

The Call-Out Era

The call-out technique has been used by radio stations since the 1960s. The basic idea behind it is to play hundreds of short song clips, and have listeners rate it on a scale of 1 to 5. This information is then used to determine which songs are most popular and to create playlists that will attract and retain listeners. However, there are limitations to this approach. First, it relies on the listener's ability to accurately recall a song after hearing only a brief clip. This means that the results are subject to biases and inaccuracies, as listeners may not remember a song accurately or may be swayed by factors such as the time of day, location or mood.

We all listen to music. It fits a mood, an activity, a location or state-of-mind. We choose the music we listen to because it fulfills something inside us. Being asked to rate a song in an artificially induced time and place places a bias on any result and inaccurately reflects the appeal of a song.

Second, call-out research is time-consuming and expensive, requiring significant resources to administer and analyze the results. For the sake of the consumer, most call-out or on-line music tests are limited to the number of songs that can be tested usually around 100 per test. This approach limits the scope of music that can be rated and can make it difficult for stations to keep up with changing musical tastes and trends.

Finally, call-out research is limited in its ability to capture the full range of listener preferences. Unlike on-demand music streaming research, call-out/online testing typically only measures how much people like a particular song, without providing any insight into why they like it, how often they listen to it, or if they skip it when it is heard on the radio.

The Rise of On-Demand Streaming Services

In recent years, on-demand streaming services like Spotify and Apple Music have revolutionized the way people consume music. Social media platforms including Tik-Tok and YouTube have also revolutionized consumption habits making it easier for listeners to hear music they love whenever they like on any device. They also collect a wealth of data about users' listening habits, including what songs they listen to, how often they listen, and when.

Bridge Ratings’ StreamStats research reveals deeper user consumption data rooted in actual user behavior including popularity of course, but also provides radio programmers Passion scores. Song skips are taken into account as well location and time-spent listening.

Traditional music research only skims the surface of any song appeal but the biases involved with this type of research result in an inability to pinpoint why or how a song is climbing the charts or fading in popularity.

The on-demand music data provides radio stations with a much more accurate picture of what listeners are actually listening to and allows them to properly align playlists and programming decisions with actual consumption.

For example, if a particular song is ranked #30 most-consumed song on a station’s list but it is the #5 most-played song on that station, over-exposure of a song with limited appeal will likely cause tune-out. On the other hand, a song ranked #2 most-streamed by the station’s audience, but it the 39th most-played is likely to reveal a potential weakness in the station’s music approach which can limit the number of daily listening occasions which directly impacts station ratings.

Bridge Ratings' STREAMSTATS is a highly utilized on-demand streaming data service, providing radio stations with detailed information about music consumption across a variety of genres and music formats. This data includes not only which songs are being listened to, but also how long listeners are listening, how frequently a song is listened to, which artists are gaining or losing popularity, and which genres are on the rise or decline.

Why Radio is Stuck in the Call-Out Era

Despite the limitations of call-out research, many radio stations continue to rely on this technique to determine which songs to play. This may be due in part to the fact that call-out research has been a part of radio culture for so long that it is difficult to break away from. The perceived comfort factor of using this decades-old technique for determining popular music is outweighed by the reliability, ease and specificity of on-demand streaming research insights.

However, there are several reasons why radio stations should consider transitioning to on-demand streaming data instead. First and foremost, on-demand streaming data is much more accurate and comprehensive than call-out research. It provides a much clearer picture of what listeners are actually listening to, and allows stations to respond more quickly to changing musical tastes and trends.

Second, on-demand streaming data is much more cost-effective and efficient than call-out research. Rather than relying on expensive surveys and focus groups, radio stations can access detailed information about music consumption across multiple genres and listener lifegroups.

Third, on-demand streaming data provides a wealth of insights into listener behavior that call-out/on-line music tests simply cannot capture. By analyzing data on what songs listeners skip over or how long they listen to particular tracks, radio stations can gain a better understanding of what drives listener engagement and loyalty. This information can be used to create programming that aligns with actual consumption providing listeners with an appreciation for a station’s music.

The Power of On-Demand Streaming Data

Several studies have demonstrated the power of on-demand streaming data compared to traditional call-out/on-line testing. In a study conducted by Music Biz, researchers compared the results of call-out research with on-demand streaming data, and found that streaming data had a higher effectiveness rate as a predictor of which songs would be successful on the radio. The study found that while call-out research with a high margin of error was accurate only about 30% of the time, streaming data was accurate about 90% of the time.

Another study conducted by Edison Research found that on-demand streaming services and social media are now the preferred method of music discovery for many listeners, surpassing traditional radio. The study found that among respondents aged 13-54, 39% reported that they discovered new music through on-demand streaming services, compared to 30% who discovered music through AM/FM radio.

Charts and graphs from Bridge Ratings' STREAMSTATS further illustrate the power of on-demand streaming data. For

This chart provides a much more accurate and comprehensive picture of what listeners are actually listening to than any call-out research could provide. It shows which songs are currently popular, how long listeners are staying tuned in, and how much of an impact different platforms are having on music consumption.

Conclusion

Traditional radio's reliance on call-out research is a classic case of relying on past “technology” to solve 2023 radio listening challenges. Rather than embracing new proven streaming technology and methods that reflect actual music consumption the radio industry programs from their playbooks of the 60s, 70s and 80s. While call-out research may have been effective in years past, it is clear that on-demand streaming data provides a look at true consumption and a comprehensive picture of what listeners are actually listening to and why.

By embracing these new methods, radio stations can stay ahead of the curve and provide a better listener experience, competing more effectively.

Why Marketing to Superfans May Not Be The Best Tactic

Superfans are often defined as the most loyal, passionate, and engaged customers of a brand or a product. They are the ones who will go the extra mile to support, promote, and defend their favorite brand, even without being asked or rewarded. Superfans are seen as the ultimate goal of marketing, as they can generate positive word-of-mouth, increase brand awareness, and drive sales. However, marketing to superfans is not always the best strategy for a business. In fact, it can be a waste of time and resources for several reasons.

Much has been written regarding the effectiveness of marketing to Superfans - regardless of product or service.

Superfans can best be described as a person who has an extreme or obsessive admiration for a particular person or thing. The number of Superfans for optimum business growth is arguably 1000 or 1500.

But is marketing to such a select group of consumers the best approach?

First, superfans are not representative of the majority of customers. They are a small and niche segment of the market, who may have different preferences, needs, and expectations than the average customer. Marketing to superfans may lead to creating products or services that are too specialized, too expensive, or too complex for the mass market. For example, a video game company may focus on developing features or content that appeal to the hardcore gamers, who are willing to spend hours playing and mastering the game. However, this may alienate the casual gamers, who are looking for a more accessible and enjoyable experience. By marketing to superfans, the company may lose sight of the bigger picture and miss out on opportunities to expand its customer base.

For the music industry,marketing to superfans may be a waste of time because that approach may neglect the potential of other customer segments, such as the casual listeners, the new fans, or the cross-genre fans

. These segments may have different tastes, preferences, and behaviors than the superfans, but they may also contribute to the growth and diversity of the music industry. For example, according to a report by CompareCamp, U.S. K-Pop fans outspend the general population on total music spend and listen more to music than the average American. They also use social media to look for new music by 31% of all teens. Moreover, R&B/Hip-Hop with a 26.7% share was the most-consumed genre in 2022. These statistics show that there is a huge market for music genres that may not have a large or vocal fan base, but still have a loyal and engaged audience.

Marketing to these segments may help the music industry reach new customers, increase its revenue, and diversify its offerings.

Second, superfans are not easy to identify or reach. They are often hidden among the millions of followers, subscribers, or customers that a brand may have on social media or other platforms. Finding out who they are, what they want, and how they behave requires a lot of research and analysis. Moreover, superfans may not be responsive to traditional marketing methods, such as advertising or promotions. They may be more interested in authentic and meaningful interactions with the brand, such as feedback, recognition, or co-creation. Marketing to superfans requires a different approach and mindset than marketing to regular customers.

Third, superfans are not stable or loyal. They may change their preferences, opinions, or behaviors over time due to various factors, such as personal circumstances, social influences, or competitive offerings. Superfans may also become dissatisfied or disillusioned with the brand if it fails to meet their high expectations or if it deviates from its core values or identity. Superfans may also switch their allegiance to another brand if they find it more attractive or appealing. Marketing to superfans is not a guarantee of long-term success or retention.

Bottom line: marketing to superfans is not a wise strategy for most businesses. It can be a waste of time and resources that could be better spent on understanding and satisfying the needs and wants of the larger and more diverse customer segments. Superfans are not the only source of value or growth for a brand. They are not the end goal of marketing, but rather a by-product of creating products or services that deliver value and satisfaction to all customers.