Subscription Conversion Rates Exceeding Internal Expectations
faidr now in top 10% of Music and Entertainment apps for User Retention
Building an Audio Superapp With Podcasts and faidrRadio - an Exclusive Premium Content Offering - Available in faidr app by end of 2022
BOULDER, CO - (NewMediaWire) - October 19, 2022 - Auddia Inc. (NASDAQ:AUUD) (NASDAQ:AUUDW) ("Auddia" or the "Company"), developer of a proprietary AI platform for audio and innovative technologies for podcasts that is reinventing how consumers engage with radio, announced today positive user data with costs-per-install (CPI) through Q3 continuing to decline as the Company gains visibility to reaching a CPI below $2 as user adoption and organic customer referrals increase.
Auddia is continuing to execute on the process of optimizing the user experience, improving performance metrics, and quantifying subscription conversion rates in preparation for providing 2023 revenue guidance with Q3 filings in mid-November. The Company is currently conducting its second test of subscription conversion rates after the first test saw an 8.5% subscription conversion rate, exceeding internal expectations of 5%. Auddia is hoping to exceed 8.5% with the most recent test, which concludes on November 9, 2022. After November 9, all current and future users will have a 30-day trial period followed by a requirement to subscribe to enjoy the premium experience of automated skipping and access to premium content such as Discovr and faidrRadio.
The Company has also seen continued improvement in key consumer use metrics achieving 7- and 30-day retention rates that now rank in the top 10% of all music and entertainment apps. To drive continued improvement across all key metrics and to optimize subscription conversion rates, the Company is adding podcasts and exclusive original content to faidr. By the end of the year, faidr listeners will be able to listen to and follow podcasts in the app and enjoy faidrRadio, featuring exclusive audio programming only available to subscribers.
“There has been very little innovation to music streaming since the advent of Pandora, Spotify, Apple Music and other me-too streaming properties over the past decade. Since the business model is challenged by expensive music rights contracts, virtually every legacy streaming player is pursuing additional audio content such as podcasting in an attempt to secure margin and be positioned as an audio superapp for their users,” said Jeff Thramann, executive chairman of Auddia. “We believe faidr represents the most innovative technology and differentiated listening experience to hit the streaming music scene in the past ten years. Auddia is the only Company providing consumers the opportunity to listen to every major AM/FM radio station in the country with complete control over the listening experience.”
“With faidr, consumers can eliminate commercials and skip songs on their favorite AM/FM stations for the first time. Many people don’t realize that AM/FM radio still dominates audio listening from a time-spent-listening perspective. We are addressing this large audience with a highly differentiated listening experience that supports very favorable economics. By adding basic podcasting now, and ultimately our innovative Vodacast improvements to podcasting, we are taking our own first steps towards an audio superapp. The key last component for us to round out our superapp is a commoditized me-too music player. In contrast, the legacy streamers need to find some type of highly innovative and differentiated experience that supports strong margins similar to what we believe we have already created with faidr which is a very difficult challenge to overcome. We are positioned strongly in the space, lead with high-margin innovation and differentiated experiences first, and then layer in the me-too commoditized music streaming experiences to cover all things audioto all listeners.”
“faidr’s audience prefers choosing what they want to hear on AM/FM radio streams. The app launched in February and, according to AppsFlyer data, faidr is already performing in the top 10% of music and entertainment apps for retention,” said Michael Lawless, Auddia's CEO. “This is particularly encouraging given that mobile app strategies to optimize retention have not yet been implemented. As those strategies are integrated into our marketing efforts, we expect retention to have a meaningful uptick. By adding podcasts and faidrRadio content, we’re empowering listeners with more choices while supporting our partners and independent music creators. We expect these content strategies to also have a significant impact on retention improvement.”
In addition to adding podcasts and original content to faidr, the Company announced its Discovr program in April to give new music artists mainstream exposure to AM/FM radio listening audiences. This represented Auddia’s entrance into the indie distribution space which is the fastest growing segment of the music industry. As partners of faidr, Discovr artists are added to radio station playlists, they receive listening data, and payment for every play. The phase 1 launch of Discovr centered on three top radio formats, targeting approximately 30 artists, which the Company exceeded. faidr is currently expanding to other formats that will be added to the app in early Q1 of 2023.
In addition to indie artists, also joining the Discovr program is faidrDJ,which rolled out earlier this year. Voiced by radio veteran Shelby Taylor-Thorn, faidrDJ acts as a welcoming mechanism and transition in-between station programming and faidr content that plays during station ad breaks. An integral part of Discovr, faidrDJ introduces the artists to listeners to provide more context and boost awareness for their songs.
About Auddia Inc.
Auddia is reinventing how consumers engage with audio through the development of a proprietary AI platform for audio and innovative technologies for podcasts. Auddia offers two industry firsts-the ability to listen to any AM/FM radio station with added personalized content and no commercials, as well as podcasts with an interactive digital feed that supports deeper stories and delivers digital revenue to podcasters. Both offerings address large and rapidly growing audiences with strong purchase intent. For more information, visit: www.auddia.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 about the Company's current expectations about future results, performance, prospects and opportunities. Statements that are not historical facts, such as "anticipates," "believes" and "expects" or similar expressions, are forward-looking statements. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the Company's current plans and expectations, as well as future results of operations and financial condition. These and other risks and uncertainties are discussed more fully in our filings with the Securities and Exchange Commission. Readers are encouraged to review the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, as well as other disclosures contained in the Annual Report and subsequent filings made with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Kirin Smith, President
PCG Advisory, Inc.