Remember when we said FAST channels would disrupt local TV? The same opportunity exists in audio. There is an exciting shift in behavior and technology that all publishers must consider.
According to Nielsen Media Research, 83% of adults listen to AM/FM “terrestrial” radio; consider that format as linear audio. At the same time, NPR’s 2023 The Spoken Audio Report stated that 58% of spoken word listening (i.e. non-music) is consumed on digital devices.
While podcasts have exploded in popularity accelerating during COVID, hands-free, ambient, “good-old radio” remains as popular as ever. Fewer and fewer people consume it over the air. Can you even buy a radio anymore? This article will focus on how publishers can create a digital radio channel without an FCC license.
The confluence of media consumption and technology shifts offers opportunities to local media publishers that didn’t exist just a few years ago. You can disrupt your local audio market by using your brand strength, trust, audience and advertiser relationships.
Local radio stations are locked into rigid pricing and programming models. You’re not.
Why streaming audio now
According to The Spoken Word Audio Report, mobile devices are now the primary way people consume audio content, representing 39% of listening time. Smart speakers/connected TVs account for another 11%.
Content strategy
In your quest to be the community nexus, think beyond news updates. Your streaming channel can include:
The key is automation. Modern playout systems handle scheduling, transitions and encoding. Your team focuses on local content that matters.
James Mulvany, CEO of Radio.co, puts it directly: “Our platform is built to be an enterprise radio platform that fills the gap between professional and consumer. It doesn’t work exactly the same way as old-school radio software, but it’s reliable and just churns out content 24 hours a day. It’s like a radio station in a box.”
Radio.co is a pioneer in cloud-based radio playout, challenging the norm of server-based automation systems 10 years ago. Based in the U.K., it provides the digital radio infrastructure for 5,000 streaming stations, many of which are U.S.-based.
Success stories
The streaming model works across non-radio industries:
“Once you’ve got an established station that’s getting good traction, they tend to continue doing well,” notes Mulvany. This matches Edison’s data, which shows that spoken word listening has grown throughout the day, not just during traditional drive times.
Revenue model
Forget CPMs and programmatic. Focus on:
- $1/ad spot
- 12 ad minutes/hour, 30 seconds/ad
- 730 hours/month
- Potential: $17,520 monthly from small advertisers
- Sell hour blocks to third parties
- Retain promotional inventory
- Create scarcity through category exclusivity
- Help advertisers reach Spotify, Pandora, podcasts and local radio audiences
- Use platforms like AudioGo, GrowthChannel or Ribeye
- Bundle with your streaming channel
- Tools like Wondercraft generate ads from advertisers’ websites
- A lower barrier for first-time audio advertisers
- Cross-sell to other platforms
Implementation guide
Start small, but think big. Local radio stations took decades to build their audiences. You already have a meaningful audience, along with their trust. You can move faster:
- Cloud-based systems like Radio.co, Airtime and Radiolize offer low-cost, low-effort entry point
- Built-in automation tools
- Smart speaker integration
- Mobile app support
- Start with automated news/weather, repurposed podcasts
- Add local sports coverage
- Partner with community creators and influencers
- Mix live and recorded content
- Website/mobile app integration
- Social media promotion and distribution
- Focus on smart speaker distribution on Amazon Echo and Google's Nest Audio
- Cross-promote in print
Audio vs. video
For those of you who know me — I love video, but video is hard. Audio is less hard:
Making it work
Your advantages over traditional radio:
Start with a simple proposition: Help local businesses reach streaming audio audiences. Use their new audio ads on major platforms like Spotify/Pandora. Offer your channel as a bonus while building an audience.
The business case
Audio should be part of your Local Media 3.0 strategy. Print revenue continues to decline. Search/social are crowded with competitors. Streaming audio offers:
Next steps
The audio opportunity won’t stay open forever. Local radio stations are starting to innovate. But they’re constrained by traditional models and FCC rules. You’re not.
Guy Tasaka is a seasoned media professional with a 35-year track record of leading change in the industry. He has collaborated with renowned organizations such as Macworld Magazine, Ziff-Davis and The New York Times, where he honed his expertise in research, strategy, marketing and product management. As the former chief digital officer at Calkins Media, Guy was acknowledged as the Local Media Association's Innovator of the Year for his work in advancing OTT and digital video platforms for local news organizations. He is also the founder and managing partner of Tasaka Digital, specializing in helping media and technology companies navigate business transformations using his extensive experience and forward-thinking approach. Guy can be reached at guy@tasakadigital.com.
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