Looking at Internet radio ad options

Jennifer Lane

There's been a lot of talk lately about declining results of display banners for advertisers (see www.wsj.com here). Technically speaking, advertisers and agencies are concerned about their ctr's - click through rates - or the number of times someone clicks on their banner as a percentage of the number of impressions that banner showed. Returns on banners are dropping. Advertisers and agencies are looking for ways to boost the effectiveness of their campaigns with new media.

What about Internet radio?

This is a great opportunity for Internet radio! But in order to perform under scrutiny, the creative message must suit the medium. Internet radio ads should not utilize the same creative as broadcast radio campaigns. The audience is entirely different. Internet radio's audience is online, and 80% of them are at work. Ads should exploit the online aspect of the audience, emphasizing an online call to action, driving traffic to a website, or asking the listener to click on a banner on the player. Ads that encourage the listener to call an 800 number, or drive to a certain store location, are targeting a broadcast listener and are not going to satisfy the online advertiser's expectations for ROI. Advertisers must be encouraged to create impactful audio messages for Internet radio.

An excellent real life example of this strategy was summarized in a case study by AdWeek on a USPS Priority Mail campaign. USPS had decided to dedicate 3% of its ad budget to emerging media, and tested Internet radio as part of that budget. They used spots that specifically referred to the banner on the media player that accompanied the audio spot. The return on the campaign in the number of banner clicks was much more than they expected. You’ll find the link to the AdWeek article on the Resources page of my blog, here.
Internet radio is a lot more than banners, and there's a lot more to consider when evaluating the success of an Internet radio campaign than a number of clicks generated. However, it's also important to note that when forced to measure up to strict ROI standards and meet certain expectations in terms of clicks, Internet radio can perform. 

How long is too long?

The length of Internet radio ads should be different as well. Time spent listening is on average twice as long as it is to broadcast radio. Therefore, new rules apply. The Internet is a fast paced environment with lots of information and choices just a click away.  Recommended lengths for Internet radio spots are 10 to 30 seconds. I got input from several online broadcasters who not only advocated for those shorter lengths but also emphasized the need for creative that is suitable for the audience. Ari Shohat, owner of Digitally Imported, one of the largest independent online broadcasters, said bad creative can do more than just fail to work; it can negatively impact the listener, and actively drive them away from a product. More important than the length, says Ari, the spot must be suitable for the audio environment and the listener. "Ads have to be made in a way that resonates with the audience - do that and you can get away with longer ads and still make it a successful campaign."

Mike Roe, Founder of Radioio agrees. When advertisers speak to "this [online] audience it needs to be in a manner befitting it and in a way that doesn't insult it, or interrupt it for too long." Mike also advocates for "NPR style" sponsorships that are integrated into the content. There's sense to this: the Internet radio listener is well educated, high income, and online savvy, and could be attracted to a more sophisticated advertising approach.

How about creating unique pods for advertisers to sponsor?

This creates a technological challenge for broadcasters who are streaming their on-air product and inserting ads over the stream. There are creative solutions to this, such as creating short valuable non-commercial content that could surround or piggyback 20 or 30 second spots. Something like this could create more value for the advertiser and the listener. Either way, it's very important for Internet radio sellers to educate advertisers and agencies on the need for distinct creative for Internet radio in order to ensure a positive ad experience for their clients and a renewal on the campaign.

Jennifer Lane has a long career in Internet radio. Read her blog about the business of Internet radio and digital audio at  www.Audio4cast.com .