How to Make Money in Digital Audio

During the 2011 Streaming Media West Show, Abacast CEO, Rob Green, presents aspects of Abacast’s digital audio monetization ecosystem, its evolution into a mature digital radio platform, and how it’s helping broadcasters generate significant profits on an annual basis.

The presentation includes two case studies of mid-level market broadcasters showing digital radio success when adopting Abacast’s Digital Radio Blueprint combined with increased efficiency in managing ad inventory using Clarity™ Digital Radio System. Mr. Green also shares strategies for in-house ad sales, how ad network revenue share and auction models contribute to profits, and the importance of validated audience metrics.

Viewers will learn about the Abacast Digital Radio Blueprint, what it is, and how it integrates with all the components of Abacast’s Clarity™ Digital Radio System creating one complete system for digital radio streaming.

The presentation speculates the business strategies that may be leading the way for video streaming providers as they find their place in the overall picture of the streaming landscape.

Abacast’s CEO, Rob Green, to Speak at Streaming Media West about Successful Business Models for Streaming Audio and the Monetization Ecosystem Needed to Achieve Profitability

Rob Green, CEO of Abacast, will speak at Streaming Media West, as he presents a monetization ecosystem that is designed for profitable streaming audio and shows the way for streaming video broadcasters in the future.

Streaming Media WestThe session titled “How to Make Money with Digital Audio,” will be held on Wednesday, November 9, 2011, at 10:30 AM and describes the components needed for a digital audio “monetization ecosystem” including strategies for in-house ad sales, how ad network revenue share and auction models can contribute to profits, and the importance of audience metrics. During the presentation, Mr. Green will share case studies of broadcasters that are generating substantial profits through their streaming radio stations today.

Because of the standardization around ad units, ad networks, and ad trafficking, audio monetization models currently lead video models. The various entities of this emerging “monetization ecosystem” all play a different but vital role in the development, analysis, and integration of streaming advertising to create a profitable, ad-supported streaming business model. The session details how each component fits into the overall scheme of the ecosystem.

Abacast’s Clarity™ Digital Radio System provides workflow, monetization, and accountability that define a profitable streaming audio model. “We’re seeing the perception of streaming changing,” says Rob Green, CEO of Abacast, “as it evolves from a necessary marketing expense into a key contributor to the bottom line for our broadcasters.”

Connecting With Your Digital Audience

Radio has always had a strong connection to and ability to connect with its audience. Radio is the local source for music and news and it is available in the home, car, work, gym, etc. People depend on radio to tell them about traffic and concerts, tragedy and comedy, and everything in-between. Your audience has always been able to tune into your station because radios have been fairly ubiquitous. But that’s rapidly changing.

 Don’t misunderstand, radios are still important, but they are being superseded by Internet devices including smartphones, tablets, and even Internet-connected televisions. The question then is no longer how are you reaching your broadcast audience, but rather what are you doing to connect with your digital audience? Is there a difference in how to reach and engage this audience? Unequivocally, the answer is YES. Connecting with your digital audience is more than just propping up a website and repurposing your radio signal; much more.

 In the broadcast world, you are competing for your audience with a small number of competitors, and only a few of those are in your same format.  In the digital world, your audience has the ability to pick thousands of stations, with no geographic limitation, and for free. If all your digital offering consists of is the same playlist as your broadcast, you will be in trouble as we shift towards digital consumption.

 In the digital realm, your audience is expecting engagement on many levels.  They are expecting an immersive experience. They want a rich engaging website, cool mobile apps, and the ability to see your playlist, share it, comment on it, and influence it. Most of all – they want it to be fun. Which of these should you invest in? All of them.

 The good news is that with the right partners, this need not be expensive or overly time consuming. We are over 15 years into streaming media, website design and even mobile applications, and smart phones themselves have greatly matured. Realistically, how many employees do you need to launch these initiatives? With the right partner: one. That’s not a typo. You need one technical management person dedicated to making these things work. They are not “run it and forget it” technologies. The change of pace is blisteringly rapid, so you must have someone dedicated who understands and appreciates new technology developments within the context of your programming and holistically, radio.

 Good programming is critical to winning a digital audience. This is where a program director who understands new media comes into play. They need to program the website, the mobile offerings, and the streaming just like radio used to be programmed. Static content is content that is guaranteed not to draw users. Boring content isn’t going to enable you to grow this audience, because they have no barrier to changing to another station. Therefore you must program. Instead of just repurposing your broadcast signal, why not provide other streams? What about a completely listener-driven stream?  What about sub-formats to your main format?  There is low hanging fruit and the capital risk is low.

 What about Facebook, Twitter, et al? These are tactics, not strategies. They can be powerful tools to help you grow your audience, but building Facebook page, for example, in and of itself, isn’t a real digital offering.

 In summary, if you aren’t investing in digital it isn’t going to grow. You need real programming to make it interesting enough to build an audience that wants to return. The good news is that if you execute properly, this audience isn’t limited to your geography, nor is it limited to a single stream; you actually have the ability to expand, grow, and monetize a larger audience then you now currently enjoy.

Huge success for Abacast during NAB

Jim Kott, Michael Dalfonzo and Rob Green during NABWith the new launch of Abacast Clarity™ Digital Radio System, it was important for us to make sure to take the time to educate our key customers, partners and prospects on the products and services contained within this radio platform.

Instead of rented booth space at the NAB , we opted for a suite in Bellagio to hold intimate meetings to demonstrate the new capabilities of Abacast Clarity™ Digital Radio System, particularly outlining the enterprise level features that the new Clarity™ Ad Insertion System has to offer. We also demonstrated its device-targeted features and 3rd party ad network integration. These are key components of the Abacast Clarity™ Digital Radio System, and are targeted to help broadcasters create meaningful revenues from their online radio streaming.

Our goal was to get direct feedback from our partners regarding the enterprise functionality of the system, its ease of use, and the layout of the user interface in a logical order for easy reporting and analysis of ad campaigns.

Our holistic approach to our new platform has been unique in the industry and we wanted to make sure we stayed customer-centric in development of Clarity™. The best way we know how to do this is get solid feedback from real ad-traffickers that are currently working in the business today.

We were booked solid in the time that we held meetings and the feedback we received has been more than outstanding, making this a huge success for Abacast.

You need to go digital now, because your audience is already there

The challenging point from the RAIN Summit West conference was repeated over and over:   The time is now for digital radio strategies.

Rob Green CEO AbacastThe RAIN Summit West had the largest audience to date, with  peak  attendance hitting approximately 250 radio professionals, all clamoring to learn more about what the future holds for the digital space as well as what can be done now for the over-the-air broadcasters. The conference hall was packed all day with broadcast industry leaders, radio executives, Internet radio entrepreneurs, and sales and technology visionaries.

Rob Green, Abacast CEO, gave a presentation about why digital matters now and what radio broadcasters can do to monetize efforts in the digital space. With every device being networked, it is important that radio uses its unique selling proposition to drive the on-air broadcast into successful digital radio models.

Unlike the other presentations that were perhaps more product focused, Rob gave the audience some real, valuable information that they could use and apply to their digital radio initiatives right now. Abacast Digital Radio StrategyUnlike newspaper or print, radio doesn’t cannibalize itself with its digital counter-part instead, it actually enhances it. He continued to discuss the fact that the digital broadcast is an additional revenue source for the broadcaster and that radio possesses the same qualities for digital that it always has for on-air. Specifically, the appeal of radio for its live broadcast is that it is geared locally and presented by individual personalities  and is a constant in most people’s lives, whether on-air or digitally.

The point of the presentation drove home the idea that the time is now to develop your digital radio strategy. 2011 promises to be an important year for broadcasters and how they embrace digital radio. BIA Kelsey reports that digital revenues are growing 14.1% (CAGR) beginning in 2011 and there is an abundance of data detailing the growth of online ad spend this year and how it is expected to jump by 2015.

Broadcasters need to act now in the digital space, because their audience is already there.