Perhaps there are three sure things in life – death, taxes, and traffic. That last dependable annoyance has been a financial boon to radio for decades. But all that may be changing.
At last year’s DASH Conference, Edison Research President Larry Rosin delivered a presentation called “Changing Route: The Future of Traffic Reporting” where he demonstrated how this long-time staple of radio content and revenue is rapidly becoming less important to an audience that requires both traffic relevancy and brevity.
From newspaper want ads to radio’s school closing reports, the Internet has disrupted the flow of information to consumers, along with the sources from which they receive it. Radio traffic reports, he warned, may not be far behind.
Rosin talked about the impact of smartphone apps and morning TV news shows on the consumer’s need of and usage for radio traffic reports. But perhaps the most poignant piece of the presentation was when he illustrated that as information is becoming more personalized for consumers, radio traffic reports still only cover the most traveled routes in the market. For many drivers, that’s a lot of information to sit through, with the good chance of not hearing traffic information for their routes.
Rosin warned that unless broadcast radio starts meeting on-demand, relevant consumer traffic needs, this content and the revenue that comes with it will be challenged, and ultimately lost.
Ironically, GeoTraffic CEO Frank Rizzo also appeared at that same DASH conference. His product addresses many of the challenges Rosin raised. GeoTraffic recently announced their platform’s “personalization” feature is out of beta and ready for public release. Thus, this seems like the right time to talk with Rizzo about the inner-workings of GeoTraffic, and its ability to use innovation to ensure a future of radio traffic reports that is both relevant and profitable.
JM: What weakness did you see in traditional traffic services that led to the creation of GeoTraffic?
FR: Traffic is the last untapped information space. Weather, finance, sports and news are all one touch away, can be personalized to some degree, and are available on-demand in a rich media format. For some reason, traffic – despite its highly valued hyper-local content – has been ignored. There was no on-demand, human voiced traffic offering.
So we set out to build a model that focused on delivering personalized traffic for the connected car. We built it with a vision of ubiquitous cross-platform delivery, meaning it is available regardless of whether the in-car system was “Built In” or “Brought In.” We feel that’s especially important as Apple and Google continue to announce OEM deals with CarPlay and Android Auto, creating a huge opportunity to gain a front row presence with a “Brought In” solution.
JM: How does the GeoTraffic platform work with radio?
FR: As radio loses its monopoly on the dashboard, it needs to stay relevant by offering consumers what they want, when they want it. Traffic is the one constant that can provide stations with a continued presence “in-cabin.”
After years of being trained to get “Traffic on the 2’s” at specific stations, listeners can now be directed to a station’s digital platform for that information. By moving listeners from broadcast to digital and back, stations can keep listeners on the channel where they started.
That makes our platform an obvious addition to News Radio, but we also believe it means music stations can now compete for this valuable share of ear and revenue, while for the first time, maintaining the integrity of their programming schedule.
And our offering is not limited to digital. We can also provide a broadcast solution in tandem. But the long-term value for radio and us lies in the digital platform. By providing an enhanced product offering, we are creating a new and valuable revenue stream with no out of pocket costs, which seems like a pretty exciting opportunity for radio.
JM: What’s the financial structure?
FR: Our business model for integrating with broadcast radio’s digital platform is based on a revenue share of our valuable geo-targeted advertising model.
Location-based advertising is the future (actually, it is the present) and there are all types of offerings that provide some form of “geo-targeting”. But we are unaware of any that provide it on a road-by-road basis in a live, human-voiced report. We have retained the value of people talking and we offer a terrific product enhancement, along with a potentially large revenue stream.
JM: How does the “personalization” part work?
FR: Our API enables radio apps the ability to provide a frictionless experience where the user can have a geo-targeted road report delivered and then seamlessly placed into their desired content.
Our user interface is a simple, clean design. The driver chooses the roads they travel on their commute and saves them in order. Once they do that, a “My Report” icon appears and a personalized traffic report is available on-demand.
JM: How does your system address concerns about distracted driving?
FR: Our current iFrame delivery requires drivers to click the “My Report” icon, which is no different than hitting a traditional preset button. And our upcoming V3 release will be voice activated on a number of devices.
All the reports are in an audible form, meaning the driver can “steer and hear.” Also, depending on the type of integration by the host platform, some reports can be automatically delivered to the driver based on preset conditions like severity and distance. This requires no action of any kind. It just delivers a non-intrusive news segment, permitting the user to stay on their chosen platform.
JM: What have been the biggest impedements you’ve had to overcome with your new platform? How did you get past it?
FR: There have been a number of hurdles that we have had to find a path over, under, or around to get here. The most obvious was developing the required technology. Fortunately, my partner Gotce Peev joined us as CTO and went right to work. He saw the vision from the outset and has built out our platform, brick by brick. “G” is an out of the box thinker and was able to guide us over and around issues that at times seemed insurmountable.
As a cross-platform delivery system, we had to ensure that integration was simple and seamless, and most importantly, that we provided choices for both our partners and end users. We knew it would be presumptuous to assume to know what you want, so in trying to satisfy everyone, we needed to build a platform with a wide selection of options.
We accomplished that and our reports can now also be overlaid on existing mobile apps, delivered seamlessly in stream on Internet radio, integrated into navigation systems — built in or brought in — on websites.
JM: What is the role of the traffic reporter and other staffers on the ground?
FR: We begin the process of preparing a report where data ends. That means our market teams take the information that our engine provides (which includes private and public feeds, along with other information sources) and begin the requisite curation before delivering a report.
It is important to note that one of the flaws we identified with current traffic offerings is that they are essentially just a pure data feed with sometimes questionable reliability. By using a number of different sources to curate and deliver road reports, we can hyper-focus on “hot spots” and continually update our listeners on developing traffic conditions.
JM: Traffic has been a revenue stream for radio for a very long time. Do you see that coming to an end anytime soon?
FR: I would defer to advertisers to answer that question but from our perspective, a couple of facts are pretty clear.
Users are migrating away from broadcast radio for traffic. Reports that are market overviews just don’t work in the on-demand world when they may not even cover the roads I travel. It’s still news, but it’s market news – not personal news. Meanwhile, advertisers are increasing the dollars spent on digital platforms while the amount spent on broadcast is moving in the other direction.
Radio does not have to simply surrender this revenue stream as it still has a massive audience base. Instead of letting listeners migrate to another source, give them a better offering on a station’s digital platform so you can retain, if not, increase the revenue. Just consider the upside of offering your existing advertisers a geo-targeted live read sponsorship. The revenue model is really exciting.
Plus, the traffic information is more accurate and personalized for your users and can include a human-voiced weather report, contest information, special event traffic, and more. It’s a chance to grow your digital platform at no cost, other than letting your listeners know it’s there.
JM: Can radio compete with apps like WAZE?
FR: Radio needs to provide a better, more accurate offering because the most accurate product will be the most successful. In order to ensure we cover the subjective wishes of many, the platforms also need to provide choices. We have met those challenges and that offering is available today.
JM: How does the advent of autonomous driving impact systems like yours?
FR: This brought to mind the Richard Jenni joke about how the advent of the window impacted weather forecasting. Autonomous driving is certainly interesting, but I think we are a long way from an autonomous car in every driveway.
And personally, I’m not sure autonomous driving will result in being told which roads to take. Those decisions will still vary and require the element of human logic to find the best path. As I said, data is terrific. Augmentation of data with human intelligence makes it better, at least as it pertains to traffic.
JM: What would you say to someone who has an idea that could revitalize a part of the radio industry but isn’t sure how to get started?
FR: From my perspective an idea isn’t enough. GeoTraffic is well past a proof of concept and we’re still struggling to get radio’s attention. You need patience and a belief in your offering.
And you should build out your offering to work on all platforms that radio now competes in to ensure a wide target market. If it adds value to the various platforms, traction will come. Maybe not where you initially expected it, but eventually the value becomes obvious.
Thanks to Mike Stern for writing this week’s RMI.
INNOVATION QUOTE OF THE WEEK
“We Americans, who invented traffic, are always being startled by the forms into which it has evolved around the world.”
P.J. O’Rourke, journalist/author
More of Radio’s Most Innovative
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Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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Came across this article early last week and have been using your app for a few days on my iPhone 4s. I’m a religious user of Waze but this seemed like this would be next level traffic delivery. Thought it was an ok app, a little old elementary looking, but it really dropped the ball on Saturday afternoon/evening.
I went to the Sox/Rangers game on Saturday. It let out around 5PM and launched your app for I-90 traffic. You were off air at 5pm on a Saturday! I couldn’t imagine Waze or WGN just completely ignoring traffic after a certain hour. Huge mistake. You really need 24/7 traffic if you want to rule the traffic field.
Speaking of Waze, I have absolutely no idea what your response about competing with Waze meant. Seemed like you sidestepped. I would prefer to see you integrated into Waze rather than being a separate competing platform. You could take Waze to the next level.
Also I had been hearing Ford ads every time I played a report & they don’t seem to correspond to my location. Based on the interview, shouldn’t I be hearing ads for local businesses? I think that is a really interesting idea but apparently it’s not working? Also not a fan of hearing ads on such short clips. Waze doesn’t make me listen or look at an ad. Inrix doesn’t make me listen or look at an ad.
I’m not giving up on it yet but the post game lack of traffic was really disappointing so I will probably stick to radio traffic and map apps.
Dan, thanks for the honest review. I am passing this onto Frank Rizzo to get this response to your experience.
Dan,
Thank you for your feedback. Please allow me to address your points as they are certainly relevant and worth an open discussion:
1) Our traffic solution is intended as a B2B offering. We provide traditional and digital platforms the opportunity to establish and/or maintain a presence in the traffic news space. We generally do not promote our own App as we do not want to compete against our potential partners. Rather it is available in the stores for purposes of showcasing our reports to potential platforms and one example of a number of integration possibilities.
You are absolutely correct that a traffic service needs to be 24/7 as we intend to launch in the near future. As a start up company, we need to weigh the ability to showcase our development and our reports while wisely spending our available funding until we obtain the necessary platforms and audience. Fortunately that time will soon arrive as we are currently being integrated into a very large platform with the requisite platform and audience.
2) As for Waze, the question posed to us was whether Radio could compete with Waze. That said, we could not agree with you more as overlaying our reports on the Waze offering provides curation of crowd sourced data as well as the added element of human logic in that curation process. We believe we can enhance the Waze offering in a number of ways! For that matter, that would include INRIX or any of the pure data offerings available today,
3) With regards to the Ford ads, we only run Ford ads in Philadelphia and a review of our offering from the weekend confirmed that there were no Ford ads run in Chicago over the weekend or at anytime. Is it possible you had changed markets to Philadelphia? As we continue to roll out our offering, you will hear more geo targeted ads. You will also hear brand type ads as companies (just as on Radio) like to keep their name and offering on the consumers mind. As for the INRIX and Waze offerings, you are correct they do not monetize their products by making the users listen to ads. But they do pay their bills from revenue derived by your using the App. It is relevant to point out that our offering does not moentize any data that may be provided by you unknowingly form your phone (nor does it burn your battery). Just as important the data elements contained in our reports is curated by humans. As I said in the interview, data is terrific. We simply believe that Traffic data is dynamic as well as subjective based upon the unpredictable human tendencies while driving and requires curation to ensure accuracy. Rather then ask users to pay a fee for the personalized and accurate report, we believe (and studies confirm) that most people are willing to hear an ad to obtain a valuable piece of infotainment. It is obvious to our users how we pay for our offering. How anyone else monetizes your use or how they disclose it is their business. We would prefer to remain obvious in that regard. I do need to add that the Radio broadcast you referred to has an ad placed before and after it (and you still may not even hear the I-90 report after waiting for that news to be delivered to you). Radio like GeoTraffic lets their users know when they are paying their bills. From a personal perspective, we prefer the open and obvious approach.
Dan, you have raised some great comments and we appreciate your not giving up on us as we are just beginning to roll out of offering. There are a number of ways your favorite station can integrate our reports and we are excited about what is coming in the coming month(s). I would ask that you be patient.
Your valid questions and solid feedback are appreciated and we cannot thank you enough for taking the time to write about your experience. It gives us the opportunity to clarify these valid issues in a public forum. Of course, I would love to hear any other feedback from you, now and into the future and have listed my email address below. Please feel free to contact me at any time.
Thanks again Dan!
Frank Rizzo
[email protected]