At the same time, the shift from PC-based display ads to mobile audio ads is driving down the blended CPM.
Banners (often hidden behind at-work listeners' spreadsheets and documents) back up audio ads with, for example, telephone numbers or links to the advertisers' sites.
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Pandora currently serves about 8 to 12 ads per hour which can consist of 7- to 8 interaction-based display ads and 3 to 4 audio ads.
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While the automated elements of Audio Ads may be new to existing radio advertisers, Google's online ad sales platform is one that many other advertisers new to radio are already familiar with, he says.
Audio Ads also enables advertisers to track when and where their ads ran soon after the fact, providing them with a faster and more accurate way of tracking their spots than the usual invoices they receive via snail mail.
That includes a quick way for consumers to buy a song they hear, potentially boosting download sales from iTunes, as well as a revenue share of new audio ads Apple is planning to add to the free service, according to sources.
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If Pandora ran several minutes of audio ads per hour (the way terrestrial radio does) vs. just a few 15 second spots, the percentage of revenues paid out as royalties would be dramatically lower and would be more in line with satellite radio or cable TV.
Google's "Audio Ads" platform, an extension of AdWords, automates the process considerably, giving customers with an easy way to designate the time, station format, geographic market and demographic audience they are trying to reach and providing them with an "ad creation marketplace" where they can collect bids from ad specialists who can work with them to create their radio spots.
Triton Digital, a Los Angeles-based company, has recently built an ad exchange that allows advertisers to automate the buying of online and mobile-audio radio ads.
These ads will appear during audio calls next to the image of the contact being called.
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This means there has to be a deep-level screening of all content on that web page, including text, images, banner ads, clickable links, audio or video files, etc.
Drew Hilles, national director of audio for Google, points out that some of the company's radio ads won't be sold online but rather via a direct sales force focused on "relationship-based sales" with big clients, just as the company does already with some of its online ad sales.
You will see hundreds of these icons offering RSS, or Really Simple Syndication, which is a way to get information sent to you, such as articles, classified ads (say from Craigslist.com), hotel schedules or even audio files (or podcasts).
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