Taking Radio and TV Advertising Online

Online TV and radio broadcasting is growing. The advantages? Viewers and listeners can watch/listen to a channel anywhere on earth. This provides an increased targeting capabilities to advertisers (particularly through geo-targeting). This way, radio and TV stations can capture a supplemental slice of the Hispanic advertising pie.

Often, these websites are sold through online advertising networks. One of these is New York-based Internap, a company that specializes in selling online radio advertising inventory. Approximately 175,000 unique listeners stream 1.7 million radio broadcasts a month on the websites of radio stations in Internap’s networks, like Univision. Internap sells banners on the radio websites and, more importantly, audio insertions. These are ads specifically created for the programming the listener is streaming down (and differs from advertising run in the stations regular broadcast over the airwaves). Another form of online advertising in online video is Audio/Video Gateway ad-placement: The pre-roll ad format consisting of audio or video content that is inserted “on demand” before the selected media content plays. Both audio insertions and Audio/Video Gateway AdUnivisions charge CPMs (cost per thousand impressions) that are considerably higher than regular banner advertising (see box below).

Similarly, online TV broadcaster JumpTV sells banner and pre-roll advertising to advertisers wanting to reach Hispanic viewers (mainly through its sports broadcasting like Soccer World Cup Qualifying Games).

Online sales of Hispanic radio and TV stations amount to a small part of the total Hispanic online advertising market. Approximately 5%-10% of the overall Hispanic online advertising market (or $7.5 to $15 million) is currently spent in online sales on Hispanic radio and TV stations.

However, online video advertising sales of major portals (e.g. Terra, Starmedia, Univision Online, Batanga etc…) are not included in this figure.

The sophisticated world of online Advertising

Advertising Format

Average CPM in $

Banner

5-10

Pre-roll Advertising

18-20

Audio Insertions

Up to 40

Related Articles:
October 29, 2007: The Growth of the Hispanic Digital Media Market

November 5, 2007: Hispanic Digital Media Debate: Does it Make Sense to target Spanish-dominant Hispanics via Digital Media? 


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