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Online Radio Advertising

Why don't radio apps like iHeart or TuneIn or even online station streams take advantage of a mobile phone's GPS location or listeners IP address to provide ads targeted towards the listener based on their location? What is the point of advertising a business in Kentucky if the listener is in California?

In my opinion Google had the perfect platform for this with their radio ads (self serve model, could have had hundreds of thousands of advertisers to fill space) but they cancelled it right before their Droid phones came out. Google was trying to go after the traditional radio market, but they should have just stuck with what they're good at, online advertising!

http://mktgblg.blogspot.com/2012/03/why-google-should-have-kept-radio-ads.html
 
Well there is a privacy concern. People will complain when they see an app requesting GPS location since they don't want to be tracked. It would be possible to get a broad location off the IP but I've found 3G IPs to not be very accurate as far as location.

Compared to iHeartRadio which is owned by Clear Channel who also owns the stations, TuneIn is just a catalog of existing streams and doesn't really have control over the stations content.

I've always wished local ads would go through when you have a local IP compared to those annoying national syndicated ads that some stations place over their streams. For those people who listen to a stream at work or somewhere local, the local ads would be relevant so it would be in the best interest of the advertisers. But a system like this would probably be more work than it is worth to implement.
 
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