How To Cash In On Out-of-Market Streaming Revenue

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By Paul Cramer


pcramerThere are a number of valid arguments both for and against the strategy to inject internet-only spots into stations’ digital streams.

Some stations and groups have opted to employ a full-simulcast strategy, whereby the over-the-air spots are simulcast in their entirety within the station’s digital stream. In some cases, this strategy is predicated on both measuring and selling the station’s total audience via Nielsen’s Total Line Reporting (TLR).

One of the pitfalls of a 100% on-air/online simulcast strategy is that it extends the reach of the radio station beyond the reach of the transmitter, without additional revenue or ratings benefits. Local-direct advertisers, in most cases, can’t generate a ROI on the additional reach that a streaming audience affords when these audiences may live hundreds of miles outside the advertiser’s trading area.

At the same time, these out-of-market listeners are driving variable costs for the station by consuming bandwidth and driving up performance royalties. This results in the radio station having un-monetized expense out-of-market.

Now, there’s a way to change that.


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