TargetSpot, the largest Digital Audio advertising network, appointed Mitch Kline as its new Vice President of Radio Sales on 10/15. Mitch brings to TargetSpot over 25 years of ad sales experience, most recently serving as EVP/DOS for Univision Radio. RBR-TVBR spoke to Kline recently about the business of audio ad insertion:
What are some of the major clients TargetSpot sells audio ads for?
TargetSpot works with a full gamut of advertisers across all major categories – we cover both national and locally-focused campaigns. Some examples include Pepsi, McDonald’s Home Depot, Walmart, Ford, Progressive, Safeway, and many more.
What Internet audio sites are selling best right now and why?
When an advertiser works with TargetSpot they are placing a buy across our network of premium properties. All buys incorporate multiple sites and are targeted based on the specific marketing objectives of each advertiser. Consequently all buys are customized to campaign goals and the mix of content varies accordingly.
Is Pandora taking the local and national dollars away from radio and radio streams as much as many have been saying? Why?
42% of the population is already listening digitally and this number continues to grow. Additionally consumers are choosing to listen digitally both at home and at work, and in both these locations, digital listening has equaled or surpassed listening to Broadcast AM/FM on an actual radio. As digital audio listening continues to increase, advertisers need to follow their consumers.
Tell us about the pitch that you give to media agencies and clients for audio ad insertion.
Digital Audio is a confirmed part of consumers’ media consumption day –80% listen for 1-3 hour daily, the listening day is long, spanning from 10a-10p and this audience is highly engaged. They change stations to remain connected to their content and often look at their player to check the name of a song or artist. Additionally, it is worth noting that while listening, 57% of Digital Audio listeners actually buy products online and 56% research products for future purchase. This, coupled with the fact that 60% of Digital Audio listeners also visit social networking sites while listening, means that the effects of properly messaging to this audience while they listen are quite profound; they are both in the purchasing funnel and creating a ripple effect by sharing with their friends.
Another critical part of the equation is the effectiveness of the medium. 58% of listeners recall having seen or heard an Internet Radio ad in the last 30 days, and of those, 44% actually responded in some way, with responses spanning well beyond the click.
Since most listeners listen to multiple streaming services each day, TargetSpot’s network is uniquely positioned to help advertisers effectively capitalize on these behaviors.
How can radio stations maximize their online revenue by joining your network?
TargetSpot is entirely focused on monetizing Digital Audio content. We have deep relationships with both brands and agencies to best service both radio and digital advertisers. Consequently, we offer a complete revenue solution to our network partners to ensure they are able to best monetize their growing digital inventory.
In Part II, We ask:
Tell us about the network you offer to clients. How are they broken down—by format only?
How did you land in this position with TargetSpot?
What does the future look like for audio ad insertion?
What’s next on the plate from TargetSpot?
What are your thoughts on so many broadcasters signing onto the iHeartRadio platform? How is that online ad revenue shared and how does it affect current deals with TargetSpot?
Companies like Saga Communications have decided to no longer substitute online only content for the on-air ads on its stations’ Internet streams. Now, everything that goes out over the air can also be heard online. Ten years ago radio advertisers’ agreement with the AFTRA union that represents voice talent on radio spots, forbid the online use of spots created for on-air radio without costly added fees. Saga says those AFTRA stipulations are almost entirely a thing of the past. Is this what you have heard, and what do stations lose by not doing online audio ad insertion?
What technologies are out there now to improve the sound and quality of audio ad insertion?
