I was lucky enough to snag a pair of speakers to hook up to my computer about a month or so ago. Since hooking them up I have listened to quite a few different radio stations online; both online versions of broadcast stations and online-only stations. I have noticed quite a few distinctions as well as some interesting things worth noting.
First, I am not at all surprised at the huge disparity between the amount of ads on online-only stations compared to those on internet versions of broadcast stations. Way back when, Darren and I attempted to get an online radio station up and running (another one of D's ideas...I was more or less along for the ride). We tried like hell to secure advertisers to support the station, but continuously fell short. At the time it seemed as though we were ahead of the times, but still today online radio advertising is nearly non-existent...on online-only stations. It makes sense, though. People flock to the internet for no-nonsense content. We do not want to deal with pop-ups or view countless banner ads...so why would we want to listen to stupid commercials? With so much competition out there, online broadcasters have to be careful not to scare away their listeners to other stations.
Second, the differences in ads is sharp across 'stations'. I listen to Mike & Mike in the morning on ESPNRadio in the car and then when I get to my desk. The advertising is bold and apparent...you almost cannot not listen to the ads when they come up. They are the same online as they are over the air...same ads, same order, same length. And, like on tv, there is always the lead into the commercial segment.
In the afternoon I will sometimes listen to The River, which is a local broadcast station, over the internet. The advertising model on this station is very different from that on ESPN. There are no similarities between the ads payed via the radio and those streamed online. The first, and most apparent, distinction between the two is that ads are actually toned down...way down...to the point they are nearly inaudible. It is shocking to me that advertisers are still paying to place ads online when they are drowned out & toned down. The next thing is that none of the ads broadcast are played online. I would be curious to know why...at first blush I would say that it would be to create and maintain a separate revenue stream. But with the lack of advertising online, I would say that this isn't working out too well for them. So, the stream is forced to fill the space between segments and ads with 'best of' clips from the morning show...but again this is almost useless since they too are toned way down. Very odd station.
Then there is B95.5 online station. I listen to this station every once is awhile on the radio and it is what my dogs listen to throughout the day at home. The internet stream, however, requires registration in order to listen. I have not registered yet, and am not sure that I will. I know that they offer contests and whatnot based upon the registration, but it is still a nuisance to join in order to listen. I am one potential listener that they have missed out on b/c I do not want the hassle of signing up with them. It makes sense because their listeners are absolutely quantifiable, but it still makes me wonder how many others are turned off and what their true potential is.
Then there are all those stations left out there whose technology doesn't work on my computer or forces me to open a different browser. For instance, PYX 106, a Clear Channel station, requires the use of IE in order to stream music. This is a pain since I always use Firefox. It may seem petty, but it again is a convenience thing with me...so sometimes I simply choose a different station simply so that I do not have to open a new browser. I have listened, however, and their advertising model is similar to that of ESPN, where ads are bold and apparent...though they are different from those that are broadcast. This is one instance of a good leveraging of an internet property to generate a new revenue stream.
Lastly, it is interesting, but not so much surprising, that internet streams more often than not are full of national advertisers and not many, if any, local advertisers. Even if a local broadcast station has a reliable advertiser, the ads do not often make it online. Of course there are some local ads on local streams, but I would think that the idea is that ad money is better spent reaching an audience that can actually patronize you or your business.
It is an interesting medium and one that is certainly still trying to figure out how best to embrace digital media and make money with it.