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Invest to Win

Posted on: April 17th, 2013 by Michael Dalfonzo, Director of Sales and Revenue, Abacast Inc.

I just finished reading a post You’ve Got to Spend It to Make It by my friend Valerie Geller, a well-known consultant and author with clients worldwide.  As usual, Valerie nails the truth of where radio is as an industry in this new digital age.

 

Every day a new study is released that highlights the incredible growth of online radio and how the audience is migrating toward mobile at an ever faster pace.  At last week’s NAB convention and RAIN Summit in Las Vegas it seemed like all anyone was talking about was digital and mobile.  The conversation has moved from should our station be online, to how do we make our online station sound as good as our broadcast station and how can we monetize it, especially the mobile portion of our audience.  I was on a panel at RAIN that covered the topic of monetizing mobile.

 

As Valerie points out in her article,

“Radio is, and always has been, in the content business. But now it’s time to add another element: Content in combination, delivering across multiple platforms.  And that content had better be good. Most listeners are distracted easily and have short attention spans. PPM proves it: If they’re bored, they’re gone.”

 

She goes on to explain that radio must invest in digital with both personnel and resources to ensure that the online product has the same listener experience as your broadcast station.  It’s not just in programming department either, your sales teams need to participate in and understand your digital offerings.  That is exactly why Abacast has created a special sales training program for local sales teams to get them up to speed on how to position, package and sell online inventory, and we have documented that an educated sales team with a commitment from top management can generate a real, significant profit from online radio.  And that’s after covering their streaming costs and Sound Exchange royalties.

 

It’s not easy, but anything worthwhile never is.  It takes a commitment from ownership and management.  We’ve seen many times that without that commitment from the top an online sales initiative is rarely successful; and when that commitment is there, most of the time success follows.

 

So the question is no longer should my station be online, but what do I need to do to make my online station successful.  The answer is simple:  Invest time, attention, resources and people and the return on that investment will be substantial.  It may not happen overnight, but then success rarely does.

As the Dial Turns, Part 2

Posted on: April 7th, 2013 by Michael Dalfonzo, Director of Sales and Revenue, Abacast Inc.

Yesterday I wrote about the growth of online radio as reported in The Infinite Dial 2013 from Arbitron and Edison Research.  Today I want to focus on the dramatic effects that mobile and the meteoric rise in smartphone and tablet market penetration.

These two graphs highlight the importance of having a mobile strategy.

 

smartphone ownership

Smarthones at hand

 

As is pointed out in the study:

 

“Now that the majority of Americans have smartphones, they have a “two-way” radio in their pocket.

Find ways to engage an audience that is tuning-in and responding on the same device.

 

This really demonstrates out the need for a solid digital strategy, that is more than just having a mobile app for your brand.  You should be thinking about how you can use the fact that for more than 80% of cell phone owners that device is always or almost always within arm’s length.  If you have kids who are under the age of 25, you know that their phones seem to always be in their hands and that most of them would rather text than talk.  Pandora reports that as much as 75% of their listening is mobile and we at Abacast have broadcasters who are delivering more than 70% of their online listening on mobile devices.  So just having an app is now an essential part of your digital strategy, but that’s just the price of admission.

 

Think about how you can leverage the intimacy that comes from your audience listening on their smart phone, you are literally in their head via their earbuds.  Brainstorm with your staff on ways that you can use this to further engage your audience for the benefit of both your brand and your advertsers who use your brand to reach those listeners.  Develop campaigns that have a mobile call to action to motivate them to interact with your advertisers.  Think of ways that you can provide content that they want to hear when they want to hear it.  A smartphone is much more than just a “new transistor radio”, it’s a way that you can provide unique on-demand content to your listeners that they can have when and where they want it.

 

Next time we’ll look at Podcasting.

As The Dial Turns, Part 1

Posted on: April 4th, 2013 by Michael Dalfonzo, Director of Sales and Revenue, Abacast Inc.

 

If you haven’t taken the time to watch the excellent presentation from Tom Webster and Bill Rose of the latest results from the annual Infinite Dial 2013, produced by Edison Research and Arbitron,  released on 4/2 you should take an hour and really soak it up.  There is a wealth of actionable data contained in this yearly snapshot of radio, both broadcast and online and media usage in general.

 

I’m going to break the study into sections and highlight some points that caught my attention and provide some action items around each.

 

The first thing that grabbed me was the amazing growth of both online radio and digital media in general.

 

Online Listening

Online TSL

 

 

 

 

These two data points indicate, to me at least, that online radio is now really mainstream and no longer the step-child of broadcast.  If you’ve been following the stats you know that broadcast TSL has been flat to even down slightly over the past couple of years while online TSL has increased dramatically.  This brings up another point; media usage is not a zero sum game.  Online radio isn’t replacing broadcast radio it is adding to the total media consumption of listeners.

 

With  online radio reaching almost one in three 12+ Americans every week for nearly 12 hours of listening radio can no longer sit on the sidelines and wait to see what this new form of listening will do.  The answer is very clear; your audience wants to hear the content they want to consume everywhere they are.  This means two things to radio:  first you must have a solid digital strategy to ensure that your content is everywhere your listeners want it to be and second, and probably most important, that the content you are creating is good enough to rise to the top through all the noise and clutter of the ever expanding media world.  Radio must get back to doing what it alone can do; provide compelling, curated, local content that is unique and remarkable and not available anywhere else.  Any media company can provide a great mix of music, and some would argue that services like Pandora can do a better job of that than radio.  What those services cannot do, is create an emotional bond with the listener as only a human being can.  Only radio can add that special sauce between the songs that creates the emotional bond with the listener.  This is also, coincidentally, what your advertisers are looking for, that bond that builds trust and engagement.

 

Tomorrow more from “The Infinite Dial”

 

Song Skipping Explained in Radio Info article

Posted on: April 3rd, 2013 by Jim Kott, Senior VP, Products and Marketing

In mid-February 2013 we were excited to announce the upcoming beta release of our new song-skipping feature for live radio streams.  This feature will enable listeners to skip songs that they don’t want to hear when listening to live radio online.  The announcement generated a fair amount of publicity as well as some questions as to how it works and what the ramifications are for the radio industry, the program director, the audience, and more.

 

Radio Info invited me to write an article further explaining how the feature will work and benefit broadcasters and advertisers (as well as listeners).

 

Here’s a snippet:SkipConcept2

When listeners have the ability to skip songs that they don’t want to hear, we believe that broadcasters will benefit from increased listening times as well as audience growth. One could argue that there has always been song skipping technology – just change the channel! However, that is one less listener for that broadcaster. With Hammer they’ll instead be able to skip the song but remain on the station. Consumers have indicated that they love the ability to skip certain songs, and we think they’ll favor services that offer this capability. We plan on releasing detailed listening time and audience size metrics at or shortly after we release this feature in Q2 2013.

 

You can read the complete article on Radio Info.

-Jim

 

Cloud-based Ad Insertion for Online Radio? What’s the Big Deal?

Posted on: February 28th, 2013 by Jason Vosburgh, Marketing Director

Lately, we’ve been talking a lot about our patent-pending cloud-based ad insertion. We’ve written about it on this blog, we launched a press release about it, and it’s even been featured in an article in Adweek. Although this has been exciting news for us, what does this really mean to a Radio broadcaster?

 

First, we should distinguish the different types of ad insertion technologies that are available today. One way is client-side which requires integration into the broadcaster’s mobile and/or desktop player, which in today’s proliferation of connected devices is becoming increasingly difficult. Each device needs to undergo a separate integration in order to deliver ads, which is inefficient as more devices are created.

 

On the other hand, server-side ad insertion compensates for the drawbacks of client-side ad insertion because it eliminates the need for client code integration.  Virtually all players, including iTunes and TuneIn can utilize it and receive targeted ads.

 

So what makes cloud-based ad insertion so great?

The server-side ad insertion discussed above is typically done with software residing on a traditional streaming server like Icecast.  This is an important detail because that is exactly what we’ve eliminated with cloud-based ad insertion. We’ve removed the dependency for online radio ad insertion to be tied to a custom streaming server implementation, which is how it is being done now. Current server-side streaming services are quickly becoming outdated technology, and most streaming today is done using a chunk-based HTTP delivery, like Apple’s HTTP live streaming (HLS) and Adobe’s Dynamic HTTP Streaming (HDS).

 

The benefit this brings to the radio broadcaster is that there is no need to be tied to just one Content Distribution Network (CDN). Broadcasters have the freedom to choose any CDN to work with, which can be based on price, service, or any other factor important to them. Another benefit of using cloud-based ad insertion as we’ve implemented it is the low-cost of HTTP delivery.  We are focused on enabling broadcasters to be profitable with streaming and so savings on the cost side are important.

 

Our years of service in the streaming industry shows us that all streaming technology is moving towards a cloud-based approach, and the current streaming server-based ad insertion technology for online radio is rapidly becoming outdated. We see that the current trends are pointing to new technologies like cloud-based ad insertion which offer scale and minimal integration. What the online radio broadcaster needs to know is that with cloud-based ad insertion, they can immediately target any player or device which drives higher CPMs and more revenue.

 

Abacast’s Cloud-based Ad Insertion and Monetizing Digital Radio

Posted on: January 21st, 2013 by Jim Kott, Senior VP, Products and Marketing

Abacast’s patent-pending cloud-based ad insertion is now in production and providing real benefits to live broadcasters.

 

In short, cloud-based ad insertion enables live broadcasters to realize more revenues and better serve their advertisers by providing many different ways to target audiences and to do so no matter what player or device audiences are consuming content from.  Inventory CPM rates for targeted ads are typically 50% to 100% higher than non-targeted ads, and because advertisers are only reaching the audiences they desire, ad inventory tends to be much easier to sell.

 

With cloud-based ad insertion (which we call cloud-insertion), a user listening to a live stream can receive a certain in-stream ad while a person listening to the same live stream on a different device, in a different location or of a different age or gender can receive a different ad, right in the same live programming.

Examples of Targeting Options

Common audience targeting options include audience geo-location, player or device, and any data that broadcasters collect about their audience such as age or gender or even favorite food.  Examples of target audiences that can be reached include “all smartphone listeners”, “all listeners in the top 20 DMAs that are on desktops”, “all listeners in the Eastern US regardless of device”, “all male listeners in the 25-34 age range in a group of zip codes”, “all listeners listening on the TuneIn player”, “listeners in the South who say they like ice cream”, and of course many more.

High Quality of Service

With cloud insertion, in-stream ads are inserted on the server side right into the content and therefore sound like they are part of the broadcast.  When the encoding of the ads matches the content, it’s virtually impossible to tell a broadcast ad from an inserted online ad.

How Does Cloud Insertion Work?

One key aspect of cloud-insertion is that it utilizes what is called chunk-based delivery.  Chunk-based delivery converts video or audio streams into discrete files that are 2 to 10 seconds in length and distributed using HTTP.  The Internet is architected to deliver content via HTTP on a massive scale.  Apple’s HTTP Live Streaming (HLS) and Adobe’s HTTP Dynamic Streaming (HDS) are examples of chunk-based delivery implementations.

 

It’s safe to say that all streaming will be moving to these “chunk-based” technologies, opening up new possibilities for targeting, increased revenue, decreased costs, and more partnership opportunities.

Immediate Targeting With No Client Targeting Code

Even with the exploding number of new mobile and other connected devices, with seemingly new ones out every week, broadcasters can serve targeted audio or video ads to these audiences immediately.  There is no lag time or development cost to create special targeting code for the new device.  Rather, targeting is supported immediately through the player’s built-in HLS or HDS support.

More Revenue, Lower Costs

On the revenue side, because advertisers pay more to reach the audiences they want to reach and because cloud-insertion provides the ability to reach discrete audiences, broadcasters will realize higher CPMs and thus more overall revenue.

 

On the cost side, because the content is distributed via standard HTTP, any Content Delivery Network can be utilized.  Broadcasters can shop for the best CDN for them based on price, reliability or any factor.  Currently Abacast’s cloud-insertion is used on three different CDNs—Abacast’s, Amazon, and Akamai—with more to come.

 

Advertising inside live streams now has the capability to be completely dynamic based on audience characteristics including geo-location, device, player, demographics, and even the service that the listener uses – i.e. aggregator, portal, media guide, etc.  Targeted cloud-based ad insertion technologies will be an imperative driver for increased revenue as we continue to see consumers using many devices to consume content when and where they choose.

 

KPLU Still Streaming Strong

Posted on: January 7th, 2013 by Jim Kott, Senior VP, Products and Marketing

It’s always gratifying when customers continue to place their trust in us for their online radio solutions. These are not prospects that are just trusting that our sales pitch is accurate and truthful–existing customers have experience with our products and our support, they know what we can do for them and most importantly they know where we are taking them and approve.

 

KPLU FM

I was very pleased when KPLU again chose us to power their online radio streams.  Known by many as “NPR and All That Jazz”, KPLU, based out of Tacoma and Seattle and broadcasting since 1966, is ranked as one of the top public radio stations in the nation. Jazz24, their HD and online service, is a highly respected source of great jazz programming and followed nationwide.

 

KPLU will be using the Abacast Clarity® Digital Radio System for hosting and streaming, station branding and listener interaction, audience metrics, and SoundExchange-compliant royalty reporting.

 

Jennifer Strachan, Assistant GM of KPLU told us that “Abacast’s great support services have enabled us to offer high quality streams, and provide our listeners the best possible online experience with the KPLU brand.”

 

Hearing this kind of praise for our services from existing customers never gets old.

 

Momentum Broadcasting Switches to Abacast

Posted on: December 1st, 2012 by Jim Kott, Senior VP, Products and Marketing

Momentum BroadcastingMomentum Broadcasting, with 4 stations located in Central California, has chosen Abacast as its streaming radio solution provider.  Momentum, who was previously with another vendor, is using Abacast’s full suite of services to power their streams including the Clarity® Digital Radio System for audio, display and video campaign management, audience metrics, affidavit reporting, royalty reporting, listener player and the Abacast streaming network.  Bill Lynch, GM at Momentum, said “We are looking forward to implementing the digital share of voice sales program with Abacast’s tools, offering our advertising clients the ability to gain premier exposure to digital audiences.”