Shifting Soundscapes

The shift of listening audiences to online platforms is largely being ignored by New Zealand advertisers.

The tectonic plates of media consumption are shifting in New Zealand, with audiences migrating to online platforms for their audio needs. This seismic change, however, seems to have largely escaped the notice of many advertisers, who continue to cling to traditional radio strategies.

This shift from traditional radio to online media, encompassing streaming services, podcasts, and social media audio features, has far-reaching implications for advertisers seeking to connect with their target audiences. While the landscape is evolving rapidly, it presents some exciting opportunities.

Less than two years old, The Platform has 10,000+ monthly listeners but that is not where its influence ends. Fronted by veteran radio journalist Sean Plunket, The Platform’s clips on YouTube had over 14 million views in 2023 compared to NewstalkZB (New Zealand’s preeminent commercial radio station) with just over 5 million. With regard to YouTube subscribers, The Platform has 39,000 compared to ZB’s 9,860.

It must be remembered that about 4.5 million New Zealanders use YouTube every month and it is especially popular amongst the younger generation, so important to advertisers. Despite this, advertisers seem to be sticking with the dying media, seemingly unaware of the winds of change. Traditional radio listenership, particularly among younger demographics, has declined as consumption of online audio options increases.

Many radio stations have expanded their presence online by streaming their content live or on-demand, offering additional content like podcasts, and engaging with audiences through social media, and some stations embrace a hybrid approach, combining traditional broadcasting with a strong digital presence to reach a wider audience and stay relevant. Yet none seem to have had the growth of the platform. It seems obvious that net casting is the way of the future.

Podcasts have become a powerful and popular form of entertainment and information over the past two decades. Podcast listenership continues to grow, with over 400 million listeners worldwide and millions of podcasts available. The industry is expected to reach $2.3 billion in revenue in the US alone for 2023, highlighting its financial strength, and they are becoming a popular marketing tool for businesses and brands to reach targeted audiences.

 While the transition from radio to online media presents both exciting opportunities and challenges, it's important to recognise that it's not a complete replacement. Radio still holds a significant audience, particularly among older demographics, who are notoriously slow to change. Although the disillusionment with mainstream media is encouraging a shift that would normally take longer.

As a marketer, it's disheartening to see advertisers largely ignoring this trend. The truth is, people are seeking alternative voices and perspectives, and they're finding them in online broadcasters. It's a missed opportunity for advertisers not to engage with these platforms, as they could be reaching a significant and potentially influential demographic.

In recent years, there's been a gradual shift in audience dynamics, with more and more people turning to online broadcasters for news and analysis. This trend has been driven by several factors, including dissatisfaction with mainstream media narratives, the rise of social media, and the increasing accessibility of online content. Despite this shift, advertisers have been slow to follow suit, often continuing to invest heavily in traditional media outlets.

According to the GFK Radio Audience Survey, more than 3.41 million Kiwis are tuning in each week to listen to commercial radio. In 2022, adspend on traditional radio was $266 million and only $10,million on Radio Digital. The 2023 figures are due to be released in March 2024.

There appears to be a missed opportunity, as online broadcasters can offer advertisers a unique opportunity to reach a highly engaged audience that may be underserved by mainstream media. It's crucial for advertisers to recognise the importance of online broadcasters and the influence they have on shaping public opinion. While the digital revolution has reshaped how New Zealanders consume information and entertainment, a significant disconnect remains between audience habits and advertising strategies.

The migration of audiences from traditional radio to online media in general is impacting various industries and demographics in New Zealand in diverse ways. Radio stations are experiencing a decline in listenership, particularly among younger demographics, leading to reduced advertising revenue and potential job losses.

The shift provides opportunities for online advertising platforms like YouTube, social media platforms offering audio features, and targeted online audio ads. However, navigating the crowded online space and addressing data privacy concerns present new challenges for advertisers.

With increased online content consumption, brands can leverage audio advertising within podcasts or online radio to reach specific demographics and promote products relevant to their content themes. This creates new opportunities for targeted marketing campaigns. Online audio platforms allow for niche content catering to specific interests, enabling advertisers to target specific demographics based on their interests and listening habits. For example, a podcast about gardening can attract targeted advertising from relevant businesses.

In addition, streaming services like Spotify and Apple Music are disrupting the traditional music industry, with decreased reliance on radio for music discovery and promotion.

Overall, the impact of the online audio shift varies across industries and demographics. While traditional radio remains relevant for some segments, the rise of online audio necessitates adaptation from various sectors to reach their target audiences effectively and navigate the evolving media landscape.