If video killed the radio star, than the Internet could be responsible for their revival.
A new report from The Media Audit showcased Monday that the percentage of Hispanics using Internet radio services has in some case more than doubled in a year, perhaps breathing new life into the future of the radio industry.
In March, 32.7 percent of all Hispanics have logged on to Internet radio website's Pandora Radio, iHeartRadio, Radio.com, or Slacker.com and are 35 percent more likely to listen to Internet radio when compared to the general population. This represents 4.2 million Hispanic radio listeners in the top 10 markets, according to The Media Audit's metrics.
The growth is significant considering Latinos will make up one third of the U.S. population by 2050, and are the fastest growing demographic among mobile Internet users. With Internet mobile ad spending expected to more than double from $7 billion in 2013 to $16 billion in 2015 - a loyal and growing base of Hispanic Internet radio users can mean big bucks in the future.
Latino Internet users are more likely than white Internet users to say they go online using a mobile device—76% versus 60%, according to the Pew Hispanic Center.
There are more than 52 million Hispanics in the U.S. today, with a purchasing power expected to grow by 50 percent from a $1 trillion to $1.5 trillion in 2015.
Pandora's Success a Model
The bulk of the growth in Internet radio over the last year can be attributed to the success of Pandora Radio. A year ago just 13.5 percent of Hispanics listened to Pandora, today 28.7 percent of Hispanics in the top 10 markets reported listening to Pandora in the last month.
The free online radio platform lets users create their own stations based on very specific tastes, like a particular artist, genre, or even song. Advertisements kick in as users listen.
The dramatic 142 percent growth in Hispanic listeners in one year is matched by the 182 percent one year increase in Hispanic listeners who accessed iHeartradio, and 52 percent one year increase in the number of Hispanics who listened to Radio.com.
While mobile ads still command lower prices than desktop ads on websites, the increased usage of radio Internet services coupled with the closing digital divide between Hispanics and whites could spell big bucks in the not-so distant future.
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