Triton's Agovino wants radio to go for new revenue with online listening, not traditional on-air budgets

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Issue Date: 
Dec 2 2011 - 12:25pm

From Issue:

Mike AgovinoTriton Media COO Mike Agovino "took to the blog" this week to point out that with October's Webcast Metrics, the total measured online listening audience has now passed 1.6 million "Average Active Sessions (AAS)" for the "workday" daypart (M-F 6A-8P). [AAS is Total Listening Hours (TLH) divided by hours in the reported time period. Similarly to Arbitron's "Average Quarter Hour," you can think of it as "the number of listeners at an average moment within the time period." ]

The online radio audience measured by Triton Webcast Metrics, Agovino says, is growing by about 100,000 AAS every 3 months (see the chart on the right). Should the industry be able to maintain that growth, Internet radio will have a 3 million AAS by 2015 -- 10% of radio's total audience.Webcast Metrics AAS quarterly trends

Agovino took the occasion to explain how  radio's current audience is worth $650-$900 million in revenue to the industry (between pre-roll audio/video ads, instream audio ads, and display ads with typical CPMs).

But he makes another point here too. You may know Arbitron is planning to roll out an "integrated audience" measurement system (see today's top story) -- to tally listening to radio whether its online or over-the-air. Arbitron wants to allow radio to present the online audience using the same traditional broadcast metrics, thereby enabling ad buyers to more easily extend their buys across both platforms. But instead of combining listening, Agovino wants radio to create a new revenue channel. He's suggesting broadcasters should be able to dip into both marketers' broadcast and interactive budgets alike.

"The dimensions of online audio expand the offering way beyond sound to include the interactive, targeting and visual benefits of online ads," he wrote. "Digital, mobile and social budgets are prime targets for this base of impressions... Selling the online audience with the on-air audience relegates publishers to fishing in the same revenue streams as they have always fished. These are not the budgets that are growing, but rather the ones that are shrinking."

Read more from Triton Media COO Mike Agovino here.


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