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Re: Friday, June 21, 2002
Doc: The math seems right. The piece that is missing is- what is the revenue model for a streaming media firm that wants to have the 2000 listners. Check my math: 2000/listeners and $604 a day is a Cost Per Thousand of about $330.00 SUPERBOWL Cost per thousand = $10 (http://jcomm.uoregon.edu/~robinson/j201_W98/adnotes.htm). According to http://www.entrepreneur.com/Your_Business/YB_SegArticle/0,4621,298247,00.html written on March 25th of this year: the usual CPM for banner ads in 1999 and 2000 varied from $30 to $40. Today, the average CPM has dropped to the $7 to $15 range, which puts online advertising on a more even financial footing with other marketing options. So in a market where banners are $7 to $15, and we assume that Radio would command a premium, it would have to command a 20 TIMES Multiple premium to match the costs of that station. Food for thought. See my weblog for more http://www.howardgreenstein.com/blog
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