Daily Archives: October 20th, 2009

Network Radio To Spend More on Internet Radio in 2010

rbrOnline radio industry magazine Radio Business Report recently polled key network radio supervisors around the country to get their perspective on the 2010 upfront. RBR’s Carl Marcucci asked each person to discuss their ad spends on streaming/digital media as well, and those answers were very upbeat.

Horizon’s Maja Mijatovic, who spends for Geico as well as other clients, gave the most positive feedback, saying her agency’s spend will be “much stronger than 2009.  Sellers have been working diligently in providing interesting solutions which in turn peaked agency/clients’ interest.  Overall bringing more accountability to the overall audio buy.  Excellent job on the part of the sellers.” OMD’s Natalie Swed Stone noted that dollars from that shop will increase as it (Internet radio) “becomes more mainstream.” Kim Vasey of MediaEdge and Eileen Casey of Zenith both indicated that spending levels will increase to match a growing audience and more digital offerings.

I contacted Brian Benedik of Katz360, one of the firms responsible for developing Internet radio dollars at these agencies, to get his perspective on network radio dollars moving to Internet radio. He said they’re definitely seeing a move to invest more dollars into online radio. “They have seen the growth on the consumer side,… the emerging mobile audio consumption… It’s become more mainstream and they want their clients aligned with it,” says Benedik, adding that some network buyers who have been reluctant to put dollars into Internet radio earlier are influenced by what others are doing as well as by their clients’ interest.

Satellite radio and HD Radio did not fare so well in Marcucci’s poll. While some indicated that spends on satellite radio will remain the same next year, no one showed much interest in investing in HD Radio, with Swed Stone noting that it “hasn’t achieved critical mass.”

Internet radio has taken several giant steps this year, including arriving at a uniform standard for audience measurement that makes it easier for agencies to recommend it. At the same time, the medium benefited from the leap of streaming radio to mobile devices such as iPhone and Blackberry, increasing public awareness and interest, and grabbing the attention of advertisers and their agencies. Combined with years of groundwork, these factors have provided momentum that should help grow the flow of dollars to Internet radio.

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