Advertisers such as Pfizer, Geico and Procter & Gamble have included Satellite and Internet radio in their radio upfronts. (An 'upfront' is simply an advertising meeting where ad buyers get to purchase airtime "up front") Walgreens and Home Depot have already made their buys in terrestrial radio, but are also considering Satellite and Internet according to Mediaweek.
Yesterday, XM Satellite Radio is hosted an upfront presentation accompanied by a Sting concert from XM’s Artist Confidential series. XM's advertising sales have exceeded $30 million to date, and that's up from the $20 million in all of 2005. "We’re anticipating a much higher sellout than last year, similar to traditional networks' 30 to 40 percent," said D. Scott Karnedy, senior vp of sales/marketing solutions for XM.
"Every day is an upfront here," said Scott Greenstein, president of entertainment and sports for Sirius, "Some of the money is coming out of network radio, some of it from local and we’re developing new advertisers." Sirius booked $22 million from advertisers (such as P&G, Heineken, Verizon and HBO) compared to $6 million for all of 2005.
Some buyers estimate that up to one-third of national radio advertisers are spending upwards of 10% of their radio budget on Internet and Satellite Radio, and that's up from 5% last year.
Satellite Radio provides a more advanced outlet for advertisers, with potential from push-to-purchase advertising, advertising on unit displays, and easier methods to make ad buys; it only makes sense for the focus to shift towards radio's own "new media."
[More on MediaWeek]
Man, that's horrible. I just knew the nice color displays of the new satellite radio units would be used to display other information, but ADS? Avoiding ads is why I got satellite radio (Sirius). Now that they've found a way to further invade my life, I will make a commitment NOT to buy any product that is advertised on my screen...and will insist that others don't either. How's that?
How's that?.....Talk channels,news channels. Do you listen to either?...If you do, stop listening. Really, You should sell that unit ( better gas milage, less weight) because all channels at least have promos for other channels or upcoming events.
Why?
$$$$$$$