Why local publishers must seize the streaming audio revolution now

Why local publishers must seize the streaming audio revolution now

Posted

Wednesday,
December 4, 2024
12:00 am

function inset_photo(focus){
$(‘.photohide’).removeClass(‘active’);
$(‘.photo’+focus).addClass(‘active’);
}

The confluence of media consumption and technology shifts offers opportunities to local media publishers that didn’t exist just a few years ago. You can disrupt your local audio market by using your brand strength, trust, audience and advertiser relationships.”

Guy Tasaka, founder and managing partner of Tasaka Digital

Guy Tasaka | for E&P Magazine

Remember when we said FAST channels would disrupt local TV? The same opportunity exists in audio. There is an exciting shift in behavior and technology that all publishers must consider. 
According to Nielsen Media Research, 83% of adults listen to AM/FM “terrestrial” radio; consider that format as linear audio. At the same time, NPR’s 2023 The Spoken Audio Report stated that 58% of spoken word listening (i.e. non-music) is consumed on digital devices.
While podcasts have exploded in popularity accelerating during COVID, hands-free, ambient, “good-old radio” remains as popular as ever. Fewer and fewer people consume it over the air. Can you even buy a radio anymore? This article will focus on how publishers can create a digital radio channel without an FCC license.
The confluence of media consumption and technology shifts offers opportunities to local media publishers that didn’t exist just a few years ago. You can disrupt your local audio market by using your brand strength, trust, audience and advertiser relationships.
Local radio stations are locked into rigid pricing and programming models. You’re not.
Why streaming audio now

Cloud-playout systems necessary to create a digital radio station eliminate expensive hardware.
Mobile phones replace professional recording gear.
AI tools automate content creation and ad production.
Multiple distribution channels (mobile, smart speakers, connected TV and connected auto) provide massive distribution opportunities that didn’t exist a decade ago.
New advertiser categories exist beyond print.

According to The Spoken Word Audio Report, mobile devices are now the primary way people consume audio content, representing 39% of listening time. Smart speakers/connected TVs account for another 11%.
Content strategy
In your quest to be the community nexus, think beyond news updates. Your streaming channel can include:

Local sports coverage with live events and updates
Community event programming
Weather, traffic and surf (if you’re in Hawaii) updates, the perfect use case for AI generation
Repurposed podcast content
AI-generated news summaries
Partner content from local creators
Branded content from local healthcare, financial institutions, home improvement and visitor bureaus
AI stingers and jingles

The key is automation. Modern playout systems handle scheduling, transitions and encoding. Your team focuses on local content that matters.
James Mulvany, CEO of Radio.co, puts it directly: “Our platform is built to be an enterprise radio platform that fills the gap between professional and consumer. It doesn’t work exactly the same way as old-school radio software, but it’s reliable and just churns out content 24 hours a day. It’s like a radio station in a box.”
Radio.co is a pioneer in cloud-based radio playout, challenging the norm of server-based automation systems 10 years ago. Based in the U.K., it provides the digital radio infrastructure for 5,000 streaming stations, many of which are U.S.-based.
Success stories
The streaming model works across non-radio industries:

Lennar Homes created soundscapes for 1,300 show homes, using different stations for each room.
Major retailers use streaming channels to connect warehouse workers who aren’t checking email.
B2B publishers deliver their content in streaming radio format.
Community radio stations engage local audiences while generating revenue through sponsorships and audience revenue.

“Once you’ve got an established station that’s getting good traction, they tend to continue doing well,” notes Mulvany. This matches Edison’s data, which shows that spoken word listening has grown throughout the day, not just during traditional drive times.
Revenue model
Forget CPMs and programmatic. Focus on:

“Dollar-a-holler” pricing — classic radio pricing model

            – $1/ad spot
            – 12 ad minutes/hour, 30 seconds/ad
            – 730 hours/month
            – Potential: $17,520 monthly from small advertisers

Time block sales

            – Sell hour blocks to third parties
             – Retain promotional inventory
            – Create scarcity through category exclusivity

Audio reach extension

            – Help advertisers reach Spotify, Pandora, podcasts and local radio audiences
            – Use platforms like AudioGo, GrowthChannel or Ribeye
            – Bundle with your streaming channel

Easy ad creation

            – Tools like Wondercraft generate ads from advertisers’ websites
            – A lower barrier for first-time audio advertisers
            – Cross-sell to other platforms
Implementation guide
Start small, but think big. Local radio stations took decades to build their audiences. You already have a meaningful audience, along with their trust. You can move faster:

Choose your platform

            – Cloud-based systems like Radio.co, Airtime and Radiolize offer low-cost, low-effort entry point
            – Built-in automation tools
            – Smart speaker integration
            – Mobile app support

Build your programming

            – Start with automated news/weather, repurposed podcasts
            – Add local sports coverage
            – Partner with community creators and influencers
            – Mix live and recorded content

Launch strategy

            – Website/mobile app integration
            – Social media promotion and distribution