Triton COO Blog: Simulcasting Debunked (Part 2)
August 21, 2013 at 4:07 AM (PT)
TRITON DIGITAL COO MIKE AGOVINO has posted the second of a five-part series to the company blog -- titled "Simulcasting Debunked -- Part 2."
TODAY he writes, "YESTERDAY, I posted about how the first decade of digital audio has been a struggle to build and monetize audience and produce profit. Broadcasters have responded to that struggle the wrong way.
It’s not hard to understand why the broadcaster’s focus has become cost containment on streaming technology and simplified sales models that bundle digital inventory with broadcast inventory (aka 'simulcasting'). After all, broadcast CPMs are better than digital ones today, broadcasters can leverage existing staff to sell 'total audience' in this simulcast model, it requires no incremental investment, and it actually saves on ad serving fees.
On the surface, it costs less and sells more! To support this solution, ARBITRON has eased some TLR (Total Line Reporting) requirements, allowing for the separate monetization of out-of-market (currently DMA-based but likely to revise as MSA) listening.
But it’s the wrong approach.
While many of you will point to a bias you assume me to have on this topic, I would point you instead toward an expertise and understanding of the space that leads me to this conclusion."