Radio technology company Quu has launched a new product called Content Partnership, which integrates visual advertising directly into radio programming. The new tech allows radio stations to display messages and images on vehicle dashboards for 30 seconds while a song or other programming is playing.

The process works as follows: when a song starts on a Quu-enabled station, the vehicle dashboard shows the song title, artist, and cover art for the first 90 seconds. Afterward, the visual switches to an ad for one of the station’s content partners for 30 seconds, displaying the advertiser’s name and a brief message. The display then reverts to the song title and artist for the remainder of the song, with the station name always present.

Quu positions the product as a new revenue opportunity that provides a broad reach through an exclusive ad unit. Generally, only two content partners will run at a time, with a content partner’s ad appearing on screen 4,000 times a month, resulting in 2,000 minutes of screen time per month, according to Inside Radio.

“With the Content Partnership, we’re taking radio to new levels of engagement, enabling advertisers to reach a captive audience in a way that has never been possible before,” said Quu CEO Steve Newberry.

Some of the first audio brands to adopt Content Partnership are Audacy, Beasley Media Group, Radio FM Fargo.

According to the 2023 Infinite Dial report released by Edison Research, two key audio trends have emerged that indicate a need for a larger advertising budget allocation to both audio streaming and in the podcast space.

An analysis of these trends by Westwood One’s weekly blog shows that for audio streaming, the number of people reporting listening in the last month and last week has increased significantly since 2018.

Specifically, the proportion of people who reported listening to streaming audio or podcasts in the last month rose from 64% to 73%, while the proportion who reported listening in the last week rose from 57% to 70%. The second trend is the proportion of the monthly audience who also reported listening weekly has gone up from 89% to 93% in the same time frame.

“Basically, people are absolutely in the habit of listening to audio streaming, and virtually everybody that’s listened last month has listened last week,” says Pierre Bouvard, the Audio Active Group Chief Insights Officer at Cumulus Media/Westwood One.

These trends have significant implications for advertisers. As more people turn to audio streaming and podcasts for their entertainment needs, advertisers will need to follow suit to reach their target audiences. This may require a shift in advertising budgets away from traditional platforms, such as television and radio, and toward digital platforms.

However, the shift toward digital platforms also presents an opportunity for advertisers. By targeting consumers through audio streaming and podcasts, advertisers can reach a more engaged audience that is actively seeking out content in their niche. This can lead to more effective advertising campaigns and a higher return on investment.

According to media analyst Michael Morris from Guggenheim Securities, Fox News channels will continue to experience difficulties in its ad business due to ongoing softness in direct-response advertising for the first six months of 2023.

Morris predicts that Fox’s cable networks, including Fox News Channel, will see a decline of 10% to $307 million in advertising revenue for its fiscal third-quarter period, and 7% lower to $334 million for its fiscal fourth-quarter 2022. This is due to challenges in direct-response advertising, which is negatively impacting the company’s overall ad business.

However, Guggenheim Securities also forecasts that overall advertising growth at its Fox Television unit, which includes the Fox TV network and its stations, will climb by 62.3% to $1.57 billion for the next quarterly earnings period ending March 31. This growth is expected to be driven by strong Super Bowl advertising results that aired last month. Additionally, affiliate fees are expected to rise by 7% to $750 million.

Tubi, which was acquired by Fox Corp. in 2020 for $440 million, has been a significant part of the company’s streaming strategy. Morris notes Tubi is expected to see its advertising revenues rise an estimated 25%.

The company’s overall revenue for the earnings period ending March 31 is also projected to improve by 18% to $4.1 billion, according to Media Post.