TargetSpot, an online system for creating, buying and placing ads within streaming media, announced Wednesday (Oct. 15) it has acquired online streaming ad rep firm Ronning Lipset Radio. The deal, for undisclosed terms, streamlines the process of buying online radio spots across and creates the largest audio advertising network.
The acquisition is also a testament to the growing popularity of of online radio, drawing an estimated 50 million listners monthly, according to an Arbitron and Edison Research study.
By combining the geo-targeting of TargetSpot’s online buying system, representing 500 stations owned by groups such as CBS Radio and Entercom Communications with RL Radio’s national networks, advertisers will be able to make national, regional and local buys, and overlay geo-targeting on national networks. In total, the merged network provides reach across 50 radio groups and Web properties for a total of 1,000 stations reaching 6 million online listeners weekly.
“This is a way to further monetize the marketplace,” said Andy Lipset, co-founder of RL Radio, which represents some of the largest online radio networks, such as AOL Radio, Yahoo, Live 365 and CBS Radio, an investor and co-founder of TargetSpot.
Lipset and RL Radio co-founder Eric Ronning will remain with TargetSpot as co-presidents of sales, as will RL Radio’s six employees.
“With TargetSpot’s technology and Ronning Lipset’s sales expertise, we look forward to providing unprecedented solutions for advertisers and the strongest monetization possible for the Internet radio business,” said Doug Perlson, CEO for TargetSpot.
By the end of the year, TargetSpot has plans to enter into mobile advertising, a logical extension for the company since CBS Radio via its deal with AOL Radio are available on the Apple iPhone. “We are big believers that audio advertising will prove to be the single most effective way to reach someone using a mobile connected device, and our mobile audio advertising solutions will open up this exciting new base for advertisers and broadcasters alike by the end of the year,” Perlson said.