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Selling the Enemy Proves Profitable

Some companies have begun selling radio and streaming services together to advertisers

Head of Business Development for Digital
Media at RMS, Lars Peters

Spotify, Capital FM, Deezer, Classic FM and Absolute Radio are natural competitors when it comes to attracting audio advertising.

Yet all these services are now available as one purchase for advertisers in a venture run by Global Radio, the United Kingdom’s biggest commercial radio company. It is called dax — the digital audio exchange.

According to dax, 17 million people in the U.K. listen to streamed music services, and music streaming has doubled in the last year. However, the market is fragmented, with more than 70 music services. Dax says there’s a clear requirement for simplification of planning and reporting, whether buying online ads within broadcast radio streams or online music services.

Dax is using targeted audio advertising from European technology provider AdsWizz.

In mainland Europe, the German sales house RMS was an early pioneer in selling radio alongside online music services. RMS has sold online audio for the last seven years.

Head of Business Development for Digital Media at RMS, Lars Peters, said that there is a wide range of online audio opportunities from simulcast FM radio streams, via aggregators and Web-only radio stations, to music services like Spotify. RMS makes all these services available as a combination buy for advertisers.

“At first, some of the traditional radio broadcasters were reluctant for us to include online-only services because they feared losing out on revenue,” Lars said. “However, we have grown the online audio advertising market overall, so everyone wins.”

While each online service may compete for audiences, collaboration for the audio advertising market seems to be gaining momentum.