While the pandemic ravaged advertising spend for the radio sector, industry experts are positive about the new digital habits it cemented and see a post-COVID recovery coming in 2021.
This year radio advertising revenue fell dramatically due to the pandemic, with the latest November SMI data showing that the sector declined 17.3% year-on-year.
However, across the radio networks, as well as streaming platforms such as Acast and Spotify, digital listenership has boosted.
Newly appointed Nova Entertainment boss Peter Charlton says brands need to take note of this shift to digital, which was already in motion for years.
“The ‘Air Pod Generation’ are now listening to more audio, via more devices than ever before,” Charlton says.
“They’re not taking a siloed approach to audio consumption, and neither can we. It won’t be enough in future to be a specialist in any single audio platform. We need to be masters of all audio formats, both their individual strengths and how they complement each other.”
Meanwhile, ARN chief strategy and connections officer Lauren Joyce says the acceleration of digital audio means that we can expect to see standardisation in the new year.
“With greater investment in content, brands will also expect more in terms of measurement and precision targeting,” Joyce says.
“This will see major audio players accelerate their roadmaps to addressability and lobby industry groups to standardise and make digital data accessible.”
Read all the predictions from radio and audio experts below:
Nova Entertainment CEO Peter Charlton
This year we’ve all been witness to the power of a crisis like COVID to accelerate change. In the case of audio, it brought forward the inevitable expansion in the way Australians listen to the audio content they love, to include more digital channels. The result has been a deeper, not weaker, connection to the medium. The ‘Air Pod Generation’ are now listening to more audio, via more devices than ever before. They’re not taking a siloed approach to audio consumption, and neither can we. It won’t be enough in the future to be a specialist in any single audio platform. We need to be masters of all audio formats, both their individual strengths and how they complement each other. That puts radio groups in prime position to own the future of audio in Australia.
In 2021, we’ll take a unified approach to articulating the total audio opportunity to advertisers, delivering more integrated audio solutions, the data and insights to prove effectiveness, and automated buying opportunities to make it easier than ever to invest.
Southern Cross Austereo chief sales officer Brian Gallagher
2021 is the year that digital audio advertising in all of its forms scales for advertisers. Everything from instream addressable ad insertion to podcast advertising will experience massive growth in advertiser support as the ad dollars follow the audiences into multiple audio platforms. Australia’s traditional radio businesses will be the core driver of this activity. Core to our success will be the alignment of our tools, from insight and targeting, to the deployment of dynamic creative and our suite of attribution products which provide daily proof that our products are delivering for brands. Digital audio advertising comes of age in 2021.
ARN chief commercial officer Pete Whitehead
In the chaotic year that was 2020, radio provided a constant source of information, escapism and companionship. Despite the predictions of a lockdown-led listenership decline, consumption actually increased but was spread across more platforms than ever before. As we move into 2021, we will see a balance of people returning to the office mixed with the continuation of working from home, resulting in the ongoing increase of in-home listening. This will accelerate the rise and rise of the smart speaker and Australia will continue to outpace the rest of the world in smart speaker adoption, reinforcing the fact that Amazon Echo, Google Home and Apple HomePod are no longer seen as a ‘stocking filler’ for consumers and a ‘novelty’ for advertisers but a catalyst for voice adoption and an emerging gateway for radio stations to connect with listeners in their homes.
2021 will be a year in which brands up the ante on development of specialised audio strategies and venture deeper into areas such as dynamic creative and interactive audio in order to engage with consumers in the most intimate and impactful way possible.
Acast AUNZ regional managing director Henrik Isaksson
Podcasting listens and ad revenue have both skyrocketed this year – a trend that will only continue into 2021. As podcasting continues to dominate, brands will look to players with dedicated insights, technology and specialist sales teams to help develop their audio-on-demand strategy. There will also be a greater focus on the tech behind podcasting – be that self-service ad tools, better tools for creators, or better measurement criteria that’s IAB compliant. It’s an exciting time for the industry and we’re so proud to be leading the podcasting charge here in Australia.
Nine Radio head of content Greg Byrnes
As we adjust to a new normal, Australians are turning to live radio in increasing numbers for community engagement, truth and debate. In 2021 there will be ever more demand for radio’s live, local and trusted content and this is where talk radio shines. Never has live radio been better placed to capitalise on the thirst for 24/7 news and opinion, but at the same time provide a platform for honest and respectful discussion. In Talk Radio our responsibility to hold opinion makers to account has never been greater.
The pandemic has reinforced live radio’s position at the forefront of community attitudes and companionship. 2020 has shown that together we can make a difference. Live and local radio brings people together. The audience expects it and as content makers we must deliver.
PodcastOne Australia head of content Jennifer Goggin
2021 will be the year of large cross-media podcast content collaborations. Well-known TV and film brands and production companies will turn to specialist audio producers to help them create podcasts that will launch in conjunction with the launch of their new film or streaming series in order to build an extension to their brand. Taking a leaf out of the ‘fancasts’ playbook, they will want to create podcasts that extend the conversation around a series, or give behind the scenes information in order to build an engaged community around their content which will give them the ability to re-target and re-engage their audience with content each season. Also, in order to compete with original podcast content, I can see catch-up radio podcasts start to experiment with new formats and creating more original content for each episode so that the listening experience feels more aligned to what podcasts ‘sound like’.
Jennifer Goggin
ARN head of commercial audio and podcasts Corey Layton
With tier-one brands more prevalent in podcasts, expect to see the dominance of attribution expand beyond online clicks into real-world path to purchase. Ad targeting too will increase in sophistication as individuals’ demographics, interests and contextual placement become commonplace. As Nielsen and Stitcher have re-affirmed however, it’s essential to weave enhanced targeting and platform-specific creative together. The alternative - a race to the bottom with creative that jars the listening experience - will lead to the medium’s demise.
As advertising targeting surges in sophistication, creators will adapt their content accordingly. While geo-targeted, dynamic insertion ad tech has been embraced by the likes of NPR’s Consider This, personalisation well beyond location data is next. Based on a listener’s demographic and interest profile, podcasts will individualise aspects of content. For instance, broad news podcasts will soon skew bulletins to better cater to a sports fan, political junkie, or tech geek.
Nova Entertainment chief digital officer Fayad Tohme
While COVID-19 has disrupted Australian routines, they're now accessing audio at unprecedented levels. In 2021, digital audio will continue to thrive with more people plugging into the medium through smartphones, voiceless tech and connected devices. Podcasts listenership will double, and advertising revenue will follow. Listeners will seek premium original content hosted by familiar voices. Curated playlists of short-form podcasts become the trend, creating the ultimate environment for binge listening.
As we enter 2021, an audio strategy is an absolute "must" for brands. Audio will become more integrated in the digital marketing mix. Ads will become more targeted with creative personalisation and tailored to the listener’s environment. We will see more synergies between audio and data, showcasing the channel effectiveness and the power of the audio ecosystem: broadcast, podcast and streaming.
ARN chief strategy and connections officer Lauren Joyce
With audio having proven its resilience across the chaos of 2020, more brands will focus on becoming audio ready. Expanding their brand guidelines to include sonic identities and having a suite of base assets to trigger momentarily will be a priority with increased investment in the space. Brands have started to see the potential audio offers beyond traditional ‘retail’ play of 15 and 30 second spots, so we’ll see an emergence of true branded audio content distributed via owned assets. The smart brands won’t insist on longform advertorials masquerading as podcasts, they’ll work with trusted voices to tailor content that addresses consumer demand for shorter-form audio, consumable on their terms. However, with greater investment in content, brands will also expect more in terms of measurement and precision targeting. This will see major audio players accelerate their roadmaps to addressability and lobby industry groups to standardise and make digital data accessible.
Commercial Radio Australia CEO Joan Warner
As the Australian economy emerges from COVID, radio should benefit from a strong but possibly uneven recovery across ad spend in 2021, with some industry sectors recovering more quickly than others. The networks have impressive talent line-ups in place and great listener loyalty and engagement. Radio remains one of the most trusted and brand safe environments, the fastest to market and one of the most effective channels for reach. This year confirmed the importance of radio’s ubiquity, with more people streaming radio on mobile phones and via smart speakers and laptops and listening to radio-produced podcasts. There will be a growing focus on voice technology in 2021. Enhancing access to the expanded radio ecosystem as well as enhancing audience measurement across all offerings will be a priority as advertisers seek more efficiency and better understanding of customer behaviour.
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