What is Internet radio and how does it work?

For most brands, content means blog posts, ebooks and infographics. But there's another type of content that shouldn't be overlooked: online radio!

So what is it? How does it work? Let's try to answer those questions today.

What is online radio?

Online radio can be in the form of pre-prepared mp3 files, or it can be live - using microphones, a host, and audio streaming over the internet.

With Internet radio, you don't have to be limited geographically (there exists Russian radio as well), and you don't have to depend on partners who might decide to shut down your show just because another, more popular program might bring in more listeners. Plus, online radio can be broadcast all over the world.

There are 3 basic elements of effective online radio:

• The source, which is you. You broadcast sound, whether it's songs, reports, interviews, music from a CD player, and so on.
• A server like Shoutcast at Shoutcheap.com. It's all combined here: the server gathers all your information together, converts it into a format you can broadcast, and broadcasts it to Internet users who click on the appropriate link.
• Listeners. Since without listeners, there's no point in spinning the radio. Listeners connect to your server and listen to your broadcast.

Why online radio?

According to a Radio Ad Effectiveness Lab report:

• People perceive the audio signal better coupled with the visuals. Audio ads backed by graphics are much more effective at reaching the brain.
• Although an image can replace 1,000 words, research shows that in some cases, words can influence people much more effectively than print or graphic advertisements because words alone can stir the emotions of a potential customer, which shows a positive trend in the use of radio advertising overall.
• The positive emotional impact of radio ads can be compared to TV ads, and maybe even give it a better result. This is important because the way an ad campaign affects a person's emotions speaks directly to its effectiveness.

According to research on the impact of Internet radio ads conducted by Target Spot:

• In 2012, about 42% of radio listeners in the U.S. preferred Internet radio (an 8% increase over the previous year).
• Internet radio is listened to by well-to-do families: 42% have their own homes and children, 64% have their own homes, and 22% have incomes in excess of $100,000 per year.
• Advertising effectiveness is greatly enhanced when radio ads are used in conjunction with accompanying graphics. For example, you can broadcast a radio ad while displaying a special banner in your browser window, or run a contest as part of a radio show in which listeners will need to open a specific address on the Internet in order to participate.
• It has been proven that the response to advertising among online radio listeners is three times higher.
• Studies have also shown that the most avid Internet users use Internet radio stations almost constantly. Such people respond even more positively to ads.

Profitability

Online radio is much cheaper than AM/FM radio stations. Websites allow users to create radio shows with professional services for a fairly ridiculous monthly fee. You can organize everything yourself. Most online radio services have their own online studios. Some even allow you to receive incoming calls from listeners, and make the program interactive.

MP3 files can be archived, allowing you to reach a larger audience, since some people may have missed the broadcast, and will want to listen to it later.