HOW TO MAKE MONEY WITH AMAZON: START SELLING THEIR INVENTORY

October 1, 2018

In March of 2017, we highlighted that Amazon was “fast becoming an ad platform.”

Just a year and a half later, the tech and retail giant rebranded their advertising business into the intuitively named, Amazon Advertising. The initiative reflects the platform’s rapid growth and maturation from being lumped into the company’s “Other revenue” category last year to being on pace to generate over $8 billion this year.

As radio ambitiously rolls out skills to drive at-home tune-ins, Amazon prepares to launch voice assisted ads on Alexa.

Like Facebook before it, Amazon would likely have hockey stick revenue growth with or without millions of dollars in free promotional inventory from radio encouraging listeners to check out the platform.

However, there appears to be a disconnect between the valuable on-air inventory being given to promote smart speakers and a clear monetization strategy for radio.

In the meantime, Amazon’s advertising strategy continues to accelerate.

Within radio, there’s near universal agreement that spot loads are too high.

Yet we run promotional inventory that highlights another rapidly emerging advertising platform that by 2020 will likely be larger than the entire radio industry, while we struggle to promote our core on-air product that drives over 90% of AM/FM’s revenue.

Adding insult to injury, we’re not reaching digital natives with a smart speaker, streaming message. Instead, we are taking that message directly to our employed, core listeners who seek us out and continue to listen on actual radios, essentially undermining our own self interest.

Perhaps this valuable on-air inventory could be repurposed to reinforce and promote on-air listening, while mixing in an occasional smart speaker promo, using a ratio that reflects the amount of listening that we would reasonably expect the devices to contribute 12 months from now.

Meanwhile, spending time off-air, crafting a compelling value proposition for your employed listeners, which will keep your station top of mind on voice activated devices and in the car along with a corresponding monetization strategy is certainly time well spent.

Worth noting, even a voice activated world without presets is very much a moving target. Take for example the MIT Media Lab, which is already developing technology that can generate search commands based only on what you’re saying to yourself. As Popular Science describes it, “It’s like having Siri listen to your internal commands.”

Until then, we are playing checkers, while Jeff Bezos plays chess.

As evidenced by his recent interview in Forbes, “Friends congratulate me after a quarterly-earnings announcement and say, ‘Good job, great quarter,’ and I’ll say, ‘Thank you, but that quarter was baked three years ago.’ I’m working on a quarter that’ll happen in 2021 right now.”

On behalf of Catherine Jung, Doug Smith and everyone at DMR/Interactive, thanks for reading and working to drive radio forward.

Andrew Curran, President and COO


Do You Hear an Echo? Amazon is Fast Becoming an Ad Platform

March 7, 2017

The Amazon Echo has received a lot of attention from radio in recent weeks. First, as a way to increase in-home listening after being described as “Radio’s Next Can’t-Miss Opportunity.” More recently as a theory to help explain how an online stream went to #1 with a bullet in Tampa.


There’s a third angle that is also worthy of radio’s attention and consideration. The role the Echo will play in helping Amazon increase its ad revenue. Amazon’s fastest growing billion dollar division isn’t drone deliveries, it’s advertising. Currently, it’s lumped in as “Other” revenue in their financials.

According to Business Insider, on a recent earnings call, Amazon’s CFO, Brian Olsavsky, agreed that while it’s “very early” to discuss the full potential of ad revenue growth, he acknowledged it was a “good strategy” for the company.

With half of US households already belonging to Amazon Prime, the ability to connect purchase data to ads being served gives them visibility into the full customer buying cycle in a way that Facebook and Google can only dream of.

According to Sir Martin Sorrell, CEO of the world’s largest advertising group, WPP, what keeps him up at night isn’t his 3 month old daughter… it’s Amazon.

As reported in Business Insider, “Nobody in the online ad business has more data about the way we shop, how often we shop, and what items we look at and decide not to buy.”

Yet the proliferation of Echo devices also presents a unique opportunity for radio to regain at-home listening after radios began disappearing from households during the last decade.

We can also use this opportunity to be thoughtful about developing a strategy that keeps your station Top of Mind and puts our best foot forward on a device often purchased initially as a personal assistant. Radio has a tremendous value proposition and dominant market share in audio.

Crafting a compelling value proposition for why your station should be Top of Mind for listeners on voice activated devices is time well spent, especially as voice command also becomes more prominent in cars. To get started, drop us a note and let’s talk about how we can incorporate your on-air Can’t Miss Moments and brand position into a compelling message strategy to those who matter most.

On behalf of Catherine Jung, Doug Smith and everyone at DMR/Interactive, thanks for reading and working to drive radio forward.

Andrew Curran, President and COO