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Bid4Spots Adapts ‘Reverse Auction’ Model for Online Radio
Bid4Spots today announced that it is adapting its patent-pending “reverse auction” model to facilitate buying and selling advertising for independent online radio.
After just a year in operation, Bid4Spots’ marketplace for terrestrial radio is used by 2,300 radio stations nationwide, 900 advertisers and more than 180 ad agencies – effectively making it the largest radio advertising network in the country, according to the company.
Applying the same principle – a reverse auction where stations compete for advertisers’ dollars and bid the ad rates down – Bid4Spots aims to harness what so far has been considered too fragmented to tame: independent, online-only radio broadcasting.
The first auction will take place Jan. 16, 2007, and will continue each Tuesday thereafter. (A demo can be seen here.)
An Arbitron/Edison Media Research study reports that 52 million Americans listened to internet radio over a one-month period earlier this year; industry observers estimate that about 42 million of those listeners tune in to an estimated 25,000 independent online broadcasters.