NYC-based TargetSpot, which wants to create an ad marketplace for Internet radio marketers and broadcasters, has added a third radio network to its roster. The Union Square Ventures-funded company has inked a deal with WarpRadio.com Inc.(WRPR.PK), which operates streaming Web sites for 130 terrestrial radio stations. Along with earlier deals with CBS Radio and Entercom Communications, the WarpRadio deal gives TargetSpot a roster of 360 stations to sell across.
That selling begins in earnest in the next week or so, when TargetSpot officially rolls out. The company combines elements of several interesting companies. Like cable TV’s SpotRunner, it allows advertisers to create their own ads if they’d like; like Google’s dMarc, it is trying to automate the purchase of radio time (except that Google targets remnant inventory on terrestrial stations while TargetSpot is Web-only). TargetSpot gets access to a percentage of each network’s ad inventory (CBS, which is also an investor, guarantees TargetSpot at least 20% of its inventory) and splits revenue with the broadcaster.
The question is whether there are enough online radio listeners out there to feed an ad network of any size. Arbitron says there 29 million people listening online each week, but radio is traditionally a local advertising platform, so there has to be enough mass in any given city or neighbourhood to make it worth a marketer’s while. TargetSpot CEO Doug Perlson, formerly of Seevast and About.com, says that online radio lacked this critical mass in the past, but has it now. Full release after the jump.
WarpRadio Partners with TargetSpot for In-Stream Advertising Services
Agreement will allow businesses to create, buy and place advertising using TargetSpot’s platform within WarpRadio’s network of 130 streaming radio stations
New York (August 27, 2007) – WarpRadio.com Inc.(WRPR.PK) and next generation streaming media advertising company TargetSpot, Inc. today announced a partnership allowing advertisers to utilise TargetSpot’s powerful ad serving technology and marketplace on WarpRadio’s nationwide network of 130 radio stations that stream online.
WarpRadio is the third company to partner with TargetSpot, which will launch this summer. In April, CBS RADIO announced that it would use TargetSpot’s technology and marketplace on its 140+ online radio station network. In June, Entercom Communications Corp. agreed to utilise TargetSpot for its nationwide network of 90+ streaming radio stations.
TargetSpot’s cutting edge technology allows businesses of all sizes to create, buy and place their own advertising messages within streaming media. Using TargetSpot’s system, advertisers can create cost-effective customised audio, video, banner and text ads with an array of jingles, sound effects and visuals provided by TargetSpot. Clients can also upload their current creative directly into their TargetSpot account. Ads are then targeted to a specific demographic, location and/or station. Campaign costs vary with advertising revenue being shared among TargetSpot and the participating broadcaster.
“We are excited to be able to provide businesses with advertising opportunities on WarpRadio’s high quality nationwide network of independent stations,” said TargetSpot CEO Doug Perlson. “Many of Warp’s stations are in small to mid-sized markets and their network compliments and enhances both the geographic and demographic diversity of the stations utilising TargetSpot’s platform.”
“WarpRadio has been seeking an in-stream advertising solution to assist radio stations in the monetization of valuable ad inventory since we started streaming radio in 1999,” said Denise Sutton, WarpRadio’s CEO and President. “TargetSpot’s technology allows our stations to unlock their enormous value. Advertisers will now be able to capitalise on our stations’ strong brands and loyal listeners in a way they never could before.”
WarpRadio, created in 1999, is one of the founding companies of internet radio streaming. By providing consistent and reliable service, WarpRadio has created terrestrial radio streaming solutions that are now the benchmark of industry standards for radio stations and syndicated radio networks nationwide
TargetSpot is a technology provider and advertising marketplace that allows advertisers to easily create, buy and place advertising messages within streaming audio and on the audio player itself. It is the first end to end advertising marketplace specifically designed for streaming audio broadcasters. TargetSpot allows advertisers to target by specific demographics and therefore appeals to advertisers of all sizes who may not have traditionally purchased radio advertising.