“What’s exciting about this,” said Jelli CEO Mike Dougherty, “is that radio stations will be able to participate in the big surge for programmatic buying that is happening across advertising.”
The service will include real-time reporting on the campaigns, but the inventory will only be available through a fixed-price model. The radio broadcast industry has yet to embrace the concept of real-time bidding, noted Dougherty.
In the race to grab a consumer’s attention through relevant ads, broadcast radio stations may find it increasingly difficult to pull in advertising dollars. Delivering personalized ads, for example, continues to be a challenge for traditional radio stations. In contrast, Internet streaming services like Pandora and Spotify offer a greater number of segmenting and targeting options.
By requiring users to log in, both digital music providers have demographic and behavioral information about their listeners that enables advertisers to target their ads according to individual preferences. WPP’s audience-buying unit, Xaxis, also launched Xaxis Radio last year through a partnership with Triton Digital, which lets advertisers buy targeted online and mobile radio inventory via RTB.