LOMBARD, Ill.—Digital audio programming, such as Pandora and Spotify, are great ways for credit unions to reach Millennials, according to a new analysis.
Raddon’s National Consumer Research shows 41% of all consumers currently listen to an online streaming music service. Enjoyed by many age groups, the services are most used by Millennials, the data shows.
“Consumers enjoy digital audio because they can program the music they prefer based on their musical tastes and mood,” said Pat Bator, Raddon senior market and product development analyst, in the latest issue of the Raddon Report. “For financial institutions, one advantage of digital audio is the ability to communicate with a target audience. Because listeners control the music they hear, financial institutions can identify a specific audience by geographic, demographic, contextual and/or behavioral traits that go beyond traditional radio’s location and time-of-day targeting.”
Measurable Impressions
Bator explained that digital audio also offers full measurability of impressions and engagement so financial institutions can track the success of advertising campaigns.
“Digital audio is a fully online medium, so there is no guesswork or sampling required to estimate the reach of a campaign,” he said. “All data is reported and can be verified by third-party ad tracking services, which is an important element of campaign management. According to an Interactive Advertising Bureau report, the digital audio market represents the least cluttered space in mobile advertising.”
Of the 20 online music services tested in Raddon’s most recent survey, 28% of all consumers listen to Pandora, 11% listen to Spotify and another 11% use iTunes Radio. The remainder is controlled by online music providers with market shares of 3% or less.
“When consumers were asked to specify the online music service they listen to most often, 54% of consumers who listen to any online music service indicate they listen to Pandora most often and 16% prefer Spotify,” said Bator. “Pandora specifically appeals to older Millennials (ages 25 to 35), while Spotify has a particular appeal for younger Millennials (ages 18 to 24).”