How to monetize our online radio station
The online radio audience is growing thanks to the changes in the listener’s habits from listening to terrestrial radio to the stations via streaming nowadays.
The increasing use of PCs, smartphones, tablets and other mobile devices has contributed to increased consumption of radio via Internet and mobility is precisely what gives us the great advantage of being able to reach listeners at any time of day.
Monetization in online radio is mostly through advertising. It’s true that online radio is still a small representative in the digital advertising ecosystem; growth forecasts of radio streaming advertising are positive, but these are still more modest than for other categories ofinvestment in digital advertising.
Still, trademarks are struggling to get a place in the online broadcast, and there are several reasons for this. One is the possibility of associating a brand to a musical genre or artist, the other big draw is that an advertisement in-steam, that is, within the flow of the stream, it is more difficult to “skip” than other forms of digital advertising .
As the online audience grows, revenue models evolve rapidly and online radio offers severalpossibilities for monetization:
- Subscriptions to Premium content, for example non-stop music.
- Advertising through banners on the website of the station, the banner features the particularity that we don’t click on it, it is always in the user’s peripheral vision.
- In-stream advertising, this is the most attractive model because ads are never blocked by Ad-Server systems as they are part of the audio streaming flow.
According to eMarketer’s, digital online radio advertising reached $ 970 million and is expected to rise to 1.31 billion in 2016 in the United States.
Another advantage offered by the online radio is the power of segmentation, which becomes a great attraction for advertisers since the impact of the announcement may be higher and get therefore a better return on investment, an example could be an ad of an energy drink in asports program focused on a younger audience.
We must remember that the possibilities that we have to increase our digital revenues are directly related to the amount and quality of our online station content broadcast. That is, any station that does not consider the digital media will be given up the possibility to monetize their radio through online.