Flynn

Top sales vets see geo-targeting, local campaigns as keys to better monetizing growing audience

Tuesday, April 24, 2012 - 12:20pm

SNL Kagan senior analyst Robin Flynn moderated the day's second panel at our recent RAIN Summit West event in Las Vegas. Flynn reported on the discussion, called "Charting Digital Audio Ad Dollars," as well as other content from the Summit, in the SNL Kagan blog "Economics of Internet Media."

While online radio usage is growing across the board, operators are faced with the challenge of better monetizing that listening, especially on mobile devices (where the ad market is less mature).

"Currently, Internet radio CPMs are in the range of $3 to $6 for nontargeted ads and higher for geo-targeted ads," said panelist Alexis van de Wyer, who's president of AdsWizz. Pandora SVP/ad sales Steven Kritzman said ads that include a video element fetch $20 CPMs. (Kritzman also mentioned that Pandora enjoys an 80% renewal rate among ad clients.) Katz360 President Brian Benedik told the panel geo-targeted advertising can boost Internet radio CPMs to the $6 to $12 range and higher.

In fact, the prevailing sense was that Internet radio's growing power at reaching truly local audiences (see Pandora) is what will truly be the game-changer in monetizing listening.

"Local CPMs at $8 to $10 are tastier than the $3 to $5 network CPMs for online platforms," Pandora's Kritzman said. Jon Mitchell, Spotify's vice president for U.S. ad sales, also on the panel, said advertisers can purchase local campaigns for as little as $500 to $1,000.

Read Flynn's entire article here. There's more on our recent RAIN Summit here; and look for more coverage (including video) of the event soon. Jennifer Lane has additional coverage in Audio4Cast here.

Syndicate content