Roulston Media Partner Mark Ramsey on How Pandora is moving in on Local Radio Revenue

December 8, 2011

Roulston Research Media Partner Mark Ramsey recently created a blog posting about how Pandora is aiming for traditional radio’s local ad dollars and how traditional broadcasters need to meet this challenge. Most broadcasters believe that Pandora is not radio and buyers therefore will not substitute ad dollars on radio for ad dollars on Pandora. Mark dismisses this by stating, “You don’t have to be identical in every way to radio to be used the same way radio is used. If you are a substitute for radio in that consumers go to you for what they otherwise go to radio for, then you can be considered “radio” – and “radio” can be considered you. Such limited thinking will constrain the strategies of broadcasters and ensure upstarts from outside radio – like Pandora – will continue to blossom and grow and siphon radio’s revenue stream from outside its too-limited boarders. This will be, in other words, an self inflicted wound.” Pandora is a service that is on par with any other radio service and the fact that their service has many options for listeners while traditional radio only has as many as they have radio stations is their problem and opportunity. To read Mark’s full posting please visit http://www.markramseymedia.com/2011/11/pandora-is-moving-on-local-radio-revenue-everybody-freak-out/.

Mark Ramsey Media is one of the best-known research and strategy providers to media companies in America. He has worked with several television and innumerable radio broadcasters over his career, including all the biggest names, from Clear Channel, CBS, Bonneville, Sirius XM, and Greater Media in the US to Corus and Astral Media in Canada. Clients from outside broadcasting have included EA Sports and Apple.

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