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How to figure stream advertising rates

P

PirateJohnny

Serious question here.

A friend has started a motorsports interview/talk show that is currently streaming in a loop on Live365 (Event Radio). He adds new shows weekly. He has been approached by some companies about buying time on the show. He is also approaching some companies himself. Yes, the companies do sell nation-wide. He has asked me how to figure a rate to ask for. He was a co-host of a local radio station's motorsports show and was somewhat familiar with their rate system, but the internet audience has him baffled.

Any ideas or suggestions?
 
Does he have any Google AdSense ads on his site? He can learn a lot about rates by looking at how Google figures rates.
 
a ballpark figure for ad revenue would be in the $2 to $5 CPM range. he might be able to charge more, up to $30 CPM, depending on the loyalty of his audience.

National ads are sold by CPM,not by spot rate. CPM is a "floating" model, you charge based on audience size. CPM is "cost per mille" which is latin for thousand.

so a $2 CPM means that for each 1000 that hear the ad, he charges two dollars.

http://www.siteadwiki.com/2013/03/2013-media-cpm-rate.html?goback=.gde_4882343_member_219015076
 
Unless you are using one of their Pro broadcasting packages, Live365's TOS forbids the sale of advertisements on their network. Advertisements are not allowed on any personal broadcast package.

R
 
Robert Bass said:
Unless you are using one of their Pro broadcasting packages, Live365's TOS forbids the sale of advertisements on their network. Advertisements are not allowed on any personal broadcast package.
Click to expand...

While I used it on a very limited basis, I was able to use the underwriting model that public radio uses. I ran it by Live365 legal and gave them examples off the FCC web site on how the announcements would be worded and they gave it their blessing at the time (about 7 years ago now). If you have people who want to underwrite your stream it may be something to consider.

FYI: The main difference between a underwriting announcement and a "commercial" is the underwriting announcement does not have a "call to action" contained in it. I would think that Live365 legal would still allow underwriter mentions as long as they conform to the way public radio does it.
 
Robert Bass said:
Unless you are using one of their Pro broadcasting packages,...
Click to expand...

it appears that this station is, in fact, pro. (and not x-5000). therefore, it can sell ads as it wishes.

note, it's been on less than a month and has 1000 slots.
 
Keeps the comments coming. So many times when streams are mentioned here, it is about advertisers not wanting to be heard outside their local area. This situation is totally opposite.
 
As someone who has been operating under the pro service of Live365 for a while, I will just offer that it seems easier to offer "packages for $50 (or whatever) per month" as opposed to individual spot rates.

I used to sell time for a local AM station, and it was hard, but selling time on an Internet station has been even tougher. But not impossible.

On our http://www.bigdcountry.com website, there is a page for sponsors and advertisers. It includes our rate cards. Our best month so far earned $700. More often, it's just a little over break-even.
 
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