Perspective - Peter Charlton at NOVA on audio’s challenge for 2023

By AdNews | 2 December 2022
 
Peter Charlton.

AdNews asked industry figures for their assessment of 2022 and outlook for next year

Peter Charlton, NOVA Entertainment CEO

Having seen a shift in how and when consumers listen to audio in 2021 as a result of the forced changes to our lifestyles and routines, 2022 has seen these new listening occasions remain but with significant increase in audience. The daily habit of connecting with your favourite radio show has bounced back with more people are listening to commercial radio than ever before (well over 12 million a week) .

The well-publicised growth in podcast listening and the subsequent increase in ad investment has continued in 2022. The ear bud generation has embraced audio listening on mobile, desktop and smart speakers as they search for more curated streamed music, radio stations on-demand and new radio brand extensions that fill all manner of listening niches. We at Nova have seen a 25% increase in connected radio station listening this year, with an incredible 50% increase in listening to Smooth’s digital brand extensions.

Most reassuringly, revenue has followed this audience growth. The time spent with our products, the amount of content on offer and the opportunities and occasions for advertisers across all audio platforms has seen revenue grow significantly on all platforms. In November we have even managed to see ad investment exceed that of the fabled 2019 benchmark.

The main challenge to the return to growth this year has been in effective recruitment and efficiently balancing workplace flexibility with productivity and staff engagement, but we are getting there!

Looking ahead, as we move from pandemic uncertainty to global economic uncertainty, we are grateful for the resilience of audio in uncertain times and the trust people have in our brands. We all need to be cautious in our outlook as advertisers re-evaluate their investment and efficiencies, but we’re buoyed by the fact that, during the GFC of 2009, both outdoor and radio increased their share of media agency expenditure as advertisers looked for cost effective robust audiences. This will happen again in 2023.

Next year investment will shift away from linear television, with its decreasing audiences and increasing cost, towards BVOD , streamed tv channels, outdoor and the brand-safe, scaled audiences offered by audio.

In 2023 audio’s challenge won’t necessarily be in finding audience for advertisers, but helping them capitalise on the growing one we’ve already got. To do that we will provide more robust and granular listening data and a deeper view of streaming audiences with the launch of the new hybrid audience measurement system Radio 360. We plan to make the purchase of digital audio uniform , automated and simplified across all radio groups and we will introduce radio attention metrics for the first time.

The challenge for brand marketers in the face of uncertainty in 2023 is to hold their nerve, maintain their investment and make some audio creative.

 

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