Triton Digital has reported, via Inside Radio, that on average about half (51%) of a streaming broadcast station’s audience is outside its Designated Market Area (DMA). In fact, according to Triton COO Mike Agovino, quoted in the article, the larger the market, the higher the percentage of out of market listening. He says a lot of the out of DMA listening is from nearby markets, such as listening in Connecticut to New York stations’ streams.
The problem is, few stations are separating their in-market versus out-market audiences when they are selling to advertisers or when they are counting up delivered impressions. In fact, most national streaming ad campaigns are targeted geographically based on choosing call letters in the markets that the advertiser wants to target, according to the article in Inside Radio, which checked in with Eyal Goldwerger, CEO of Targetspot and Brian Benedik, president of Katz360. If national advertisers are buying streaming ads on broadcast stations and believe they’re geotargeting by doing so, that’s a problem, since this new info from Triton reports that only half the people who hear the ads are in that market.
Since online stations like Pandora and Slacker are registering their listeners, they have actual impression by impression geotargetability. Advertisers that are measuring the results of their campaigns are going to see an improved return by those stations and that will drive the price up for them. Broadcasters that stream and fail to improve their targeting capabilities will see the opposite.
The reality is that targeted ads are good for the station, the listener and the advertiser. Listener registration lies at the center of ad targeting capabilities. Pandora, Slacker, CBSRADIO, iHeartRadio, and others have been registering their listeners for a long time because they understand that the game has changed and targetability is essential to an ad based streaming audio ad model.