Last month, I highlighted a couple of studies that pointed out the difficulties faced by traditional radio stations when it comes to garnering more digital revenue. A new service being rolled out by Jelli, a company that delivers user-controlled radio, may change the way spot radio works and build digital revenue for radio stations. This service is available now for national spots but may soon be used by local marketers as well.
Until now, Jelli has been all about delivering user-selected songs to listeners of terrestrial radio station content. Just late week, Jelli CEO Michael Dougherty described the new platform his company is offering to national advertisers. For the most part, this new ad platform is all about digital data. Jelli’s programming, which is delivered to 25 markets and is rapidly expanding, now contains embedded ads. These ads feature a message from national advertisers. Consumers who listen to this programming through their local stations and who have downloaded apps, can engage with the ads via their smartphones. Listeners can click either Hit or Miss to tell the marketers what they think about the ads they’ve heard. When they do, their demographic profile data and responses will be funneled back to the marketers and their agencies for analysis.
According to Dougherty, “The advertising industry is eager for innovation from radio, to move a radio campaign from the world of ‘did it run?’ to ‘did it resonate?’” The new Jelli Response system will let marketers know immediately if consumers liked an ad. The system will also give an indication of how many consumers are actually listening and responding. Currently, the model is set up to deliver ad revenue only to Jelli but the company envisions a revenue partnership with the stations who purchase its syndicated content. The company also expects that this platform will be rolled out at the local level. Before long, the owner of the corner flower shop may know who is listening and responding to her ads.
This development is being hailed as revolutionary by Jelli execs. While industry watchers are enthusiastic about this change, some are taking a wait-and-see attitude. Jelli’s available inventory is sold out through July for this platform. That period of time should give advertisers and their agencies enough feedback to determine whether consumers are responding and how to move forward with this new digital revenue stream for radio stations.[Source: Has Jelli Reinvented the Radio Spot? Radioink.com. 3 May 2012. Web. 7 May 2012]