Response rates increase 200% when advertisers add Internet radio -- defined as both online-only stations and streams of broadcast stations -- to online campaigns, according to research conducted by Parks Associates for audio ad network TargetSpot.
According to the new "Internet Radio Advertising Impact Study," "users who spend the minimal amount of time listening to Internet radio had higher ad response rates than heavy Internet-only users."
Ad responses as defined by the report include purchasing a product online or at a retail location, searching for product information, becoming a "fan" on Facebook, or calling the advertisers.
The research also reported 350% higher ad response rates when advertisers add Internet radio to broadcast radio campaigns.
In a companion report on "Digital Audio Usage Trends," Parks and TargetSpot focused on listener engagement. They report that 52% of digital audio listeners recall hearing or seeing an Internet radio ad -- with 40% of that group responding to an ad.
The study says that digital audio has now reached critical mass -- 39% of U.S. broadband households. While 96% of the Internet radio audience listens via computers, 45% over mobile, and 15% on tablets, the latter medium has the most active users - with 25% of tablet listeners tuning in for four or more hours daily, compared with 23% of computer users and 16% of mobile users.
And 73% of digital audio listeners reported changing stations multiple times daily, a stat the study says mirrors listening patterns for over-the-air radio. That's significant, since the study also found that Internet radio ad recall increases 17% -- and response rates 200-500% -- when users tune in to two or more stations.
The "Internet Radio Advertising Impact" study, conducted online in January, surveyed 2,127 U.S. households that listen to both broadcast and Internet radio -- and use the Internet at least once a month. The "Digital Audio Usage Trends" study, conducted online in December, surveyed 1,000 U.S. Internet radio listeners (ages 18+) who listen to the medium at least once a month.