XM Satellite radio is a pay-for-service set of radio frequencies that offers more music, news and sports channels than standard radio stations. The service provides 39 news, entertainment and sports channels, 21 regional traffic/weather channels and 23 sports channels. The music stations are typically ad free, yet the remaining channels avergae eight minutes of advertising per hour. This effects radio advertising in that it enables more specific targeting. The expanded set of channels results in more detailed content based on topic or region. Advertisers can now reach listeners who are more specifically in tune with their target market, such as the women's programming channels that XM currently offers.
XM radio has increasingly become an enticing medium for marketers. Last year XM Radio tripled the number of advertising agencies it works with, which brought in $20 million in revenue. The growing demand has persuaded XM to start advertising on their music channels.
"We can't keep up with the demand," says XM's sales and marketing VP Scott Karnedy. "When we broke through six million subscribers, we saw that as a tipping point [with advertisers]." Advertisers are salivating over the increasing ad space, however we'll have to see how listeners react. The lack of ads on their music channels was a huge selling point for XM. If subscriber rates start dropping, so will the value of the ads everyone wanted in the first place.
Source: http://www.businessweek.com/technology/content/apr2006/tc20060413_150389.htm
2 comments:
i don't see any article cited in the xm radio article - where did you get the quotes from
and the blink one is from 2006 - the assignment is to use stuff that's very recent, like within the last couple of months
0 points for hte week
Hi Nate - here's another blog that's about radio - http://www.hear2.com/
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