Programmatic and radio make first step to come together
Programmatic is the expected standard in advertising today. Opportunities to buy ad space programmatically exist in many media, but radio is the one platform that has held out the longest. However, it looks like there’s a shift coming.
On May 27th, radio-industry vendor Marketron presented the very first live demonstration of a programmatic radio buy at Radio Ink’s Convergence Conference in San Jose.
If you are familiar with radio advertising, you can see why this could be such a big deal. Radio managers have been notoriously resistant to programmatic, citing every excuse under the sun as to why they haven’t jumped on board. Concerns about eliminating the human element of the sale and driving down prices have made programmatic extremely slow to catch on.
All of these fears are rooted in managers feeling like they are losing control over what’s being sold. However, programmatic only needs to be used to supplement the ad space that isn’t sold via traditional methods. Radio stations are missing out on dollars by not adopting programmatic.
So what’s next?
This change marks a shift in the way things are done, but how will other radio vendors respond? It is likely that they will create their own programmatic platforms, an action that is subject to a different criticism. Some say that the industry would benefit the most from a single programmatic platform, where buyers could open one program to reach every possible radio station.
We’ll keep an eye out and keep you posted on how things move forward. In the meantime, be sure to check out SRDS.com for researching digital programmatic ads.