Webcasters (including broadcasters regarding their online streaming) need to rid themselves of the CPM-driven advertising style of broadcast, and instead offer buyers the real-time insight into campaigns' performance that digital technology enables.
That's the point Ken Dardis makes in a recent Audio Graphics blog. He writes, "As long as advertising is sold the same way online as it's sold over-the-air, there is no business model for streaming."
Cumulus CEO Lew Dickey recently told BloombergTV, "We don't see a business model for streaming." Dardis says this is because most broadcasters are looking for "bulk" so they can sell CPM ("cost per thousand") campaigns.
But online radio doesn't have the massive listenership for this style of advertising. What online radio does have is the ability to monitor the effectiveness of campaigns in real time, and tailor messages "on the fly" to maximize effectiveness.
"What Google, MSN's Bing (which now includes Yahoo! Search), and any of the numerous ad serving platforms like Zedo, Adconion, ValueClick, etc, are presenting advertisers with is campaign metrics," Dardis writes. This style of advertising "allows savvy media buyers to dissect the numbers as their clients' needs require to improve campaign response. In many cases this campaign improvement can be done in the middle of the campaign."
Read more from Audio Graphics here.