Amid a weak advertising market, SiriusXM CEO Jennifer Witz pointed to positive signs, including an auto sales recovery and the podcast market for concern among brand marketers, to forecast a recovery in ad sales in late 2023. .
But US ad sales have softened for the satellite radio giant this year as more audio platforms compete for fewer advertising dollars amid concern for consumers and brand marketers. “It’s choppy. It’s definitely choppy out there. I see it every week. And it’s a tough environment,” Witz said Monday during a session of the webcast at JP Morgan Global Technology, Media & Communications told the conference.
In addition to flagship subscription entertainment service SiriusXM, Vitz runs the advertising-supported Pandora streaming platform and seeks to pioneer the advertising-driven podcast business by bringing top marketing brands to that growing audio content market.
Pointing to the growing demand for ad sales for the travel and restaurant sectors, Witz pointed out, “Some brands are sitting around until they see if the consumer power is really there.” But other brands and advertising categories face the opposite, including direct response and direct-to-consumer advertising platforms as promotional tools.
To make podcasts more attractive to brand marketers, SiriusXM is enabling digital advertisers to reach specific shows or an entire audience demographic within its podcast network. Audio advertising driven by new digital formats has also become an increasing focus on SiriusXM as it has moved to a streaming model on top of its satellite radio broadcasts, while also using its exclusive 360L technology to combine satellite and streaming features. Also rolling out.
Vitz said car drivers are looking to the convenience of audio streaming services for listening outside their home, rather than customers simply turning on the ignition and flipping a dashboard radio dial to see what hits their fancy . Here products like Apple Car Play and Android Auto represent new competition for SiriusXM.
“They (streaming platforms) have set a different expectation. Finding your favorite content should be a guided experience,” he added, adding the 360L technology, which offers curated audio recommendations based on listening history and personalized favorites for drivers, available right after the engine is started and a The journey is about to begin.
The new streaming features are aimed at letting drivers use SiriusXM outside of the car. “As we build out this platform, we’ll be able to more seamlessly connect people to the listening experience outside of the car,” Vitz predicted.
That said, the SiriusXM chief insisted that his company had a loyal customer base that had long used iPods and rival audio listening products in cars to early iPhones. “We would expect our customers to do the same. We see ourselves as a complementary, but very different service. So in the face of the growth in algorithms and automation and AI, we are very unique,” Vitz said at the investors’ conference. told.